A Revenue Management Software (acronym: RMS) automates the process of leveraging analytics.
In the hospitality industry, it’s used to determine the right price for hotel rooms, thereby maximizing profitability and revenue.
Also called a Yield Management System and Pricing Engine, such a tool is important for all kinds of hotels, small and big, including Chain Hotels, Independent Hotels, Bed & Breakfast, and more.
Do you need a RMS software to help you & your Revenue Management team make better pricing decisions? Unless your room prices are particularly static and that you have perfect control of demand - the answer is: yes!
In this article, we're going to look at:
- What are the major advantages of using RMS systems to automate your hotel revenue management?
- What features should you compare when looking at different revenue management solutions for your independent hotel?
- What are the best revenue management software for hotels available on the market today?
Table of contents for this article:
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What are Main Benefits of Hotel RMS Systems?
With a Revenue Management Software, a hotelier is able to sell the right product to the right customer on the right distribution channel for the right price.
The tool uses historical data, market triggers, and demand signals to give insights and recommendations for each room type and segment at the property.
The information you receive is channel-specific, allowing you to price accordingly on multiple distribution channels.
A good RMS considers a wide range of data - historical and futuristic - to make automated forecasts about the budget and revenue.
As such, the data you receive is highly accurate, allowing you to determine the exact demand and supply for 365 days in a year.
With accurate forecasts, each department is able to make smarter sales, marketing, and operational decisions.
Better operational efficiency
When you automate the revenue management process with a tool, you no longer have to manage dozens of reports and spreadsheets.
There’s no need to calculate everything in your head! With a Revenue Management Software running these processes in the background, your staff can focus on strategic thinking around guest service, marketing, and branding.
A Revenue Management Software is designed to find the right mix for optimal business.
Its primary goal is to balance occupancy and ADR to drive more revenue per available room.
A modern-day RMS deducts acquisition and labor costs to help you make better financial decisions.
What are the Most Useful Features of Revenue Management Solutions?
With many RMS tools available in the market, it can be hard to make the right choice.
For instance, in recent years most Revenue Management Software have moved from on-premise systems to Cloud-based applications.
As such, multiple users can log in simultaneously to check data, interpret market triggers and price rooms accordingly.
Similarly, integration with other tools is important.
In order to choose the right RMS for your hotel, it’s important to consider the features that you will need.
Your Revenue Management Software should seamlessly integrate with PMS, CRM, CRS, and booking engine.
It should be a two-way connection, allowing the multiple systems to communicate with each other and share data.
A good RMS allows you to price distribution channels and room types independently of each other.
It shouldn’t focus too much on a set BAR price.
As mentioned earlier, most Revenue Management Software are available as Cloud-based applications. This allows multiple systems to share data and provide you with better insights.
Moreover, all the data in a Cloud-based architecture is stored and delivered in real-time, minimizing the scope of error.
Without Intelligent Reporting, a Revenue Management Software is pointless.
The tool should be able to build, share, and export critical reports, giving you more time to focus on strategic operations.
Each member of your revenue team should be able to share data with just a few clicks.
If you didn’t find a suitable solution on this list, have a look at our
Partners Marketplace for more options and special offers.
While we’ve tried to cover most top-rated Revenue Management Software available in the market, the list is endless.
With a wide range of choices, the decision might seem overwhelming.
After all, it’s a long-term commitment that directly impacts your revenue and business.
Whichever system you choose; we encourage you to have one for your property unless you are really managing your rates and checking your competition on a regular basis.
The long term benefits of investing in a good RMS are well worth the initial investment.
And if you're confused, why don’t you get in touch with an expert?
At HotelMinder, we assist ambitious entrepreneurs manage small and medium independent hotels and chains ranging from around 15 to 150 rooms, so we know and understand how automation with the right tech is essential for a successful hotel business.
Planning the selection and implementation of your new solution with an expert is the only way to ensure you are making the right choice through smart and informed decision making while avoiding pitfalls.
Not having to go through dozens of different vendors sales pitches will save you a lot of time, confusion and pressure.
The assurance you are moving forward with the right solution from the start will make you an
efficient decision maker while guaranteeing no costly mistake is being made.
When it comes to selecting the right technology solution for a business, professional advice is indeed invaluable!