Revenue management systems (RMS) give hoteliers fresh insight into the financial health of their hotel. So it’s surprising to learn that, according to one estimate, only 7% of hotels rely on RMS technology. Manually managing room rates, booking guidelines and revenue targets is possible—but it’s also difficult and unreliable. By measuring supply and demand to recommend and set room pricing, an effective RMS takes the guesswork out of room rates.
Deciding to implement an RMS is just the first step. Choosing a system with the right features and capabilities is crucial for starting off on the right foot. There are many options available, and some are better suited to your needs than others. Ask the following questions to find a system that will benefit your bottom line and check all the boxes for your revenue management team.
1. Does it Integrate With Your Property Management System?
An RMS that doesn’t seamlessly integrate with your property management system (PMS) is a lost opportunity. When these two technologies work together, they give revenue managers access to invaluable tools, data and oversight. Revenue is inextricably linked with daily operations, so it only makes sense to include an RMS as part of your comprehensive PMS.
2. Does it Enable Maximum Data Collection?
Revenue management is really just a numbers game: hotels that collect and store more data are at an advantage as they have visibility into exactly what’s driving or hurting revenue. When managers need to adjust prices or make decisions about inventory, extensive and accurate data can provide the answer. Choose an RMS that automatically collects and organizes data from across your operations. The system should also make that data extremely accessible to revenue managers and any other stakeholders.
3. Does it Offer Automation?
As important as revenue management is, it shouldn’t be a distraction. If hotel managers are spending all their time crunching numbers, they might not be able to effectively manage their other responsibilities. The best RMSs incorporate advanced automation that can complete routine tasks in an instant. Ideally, revenue management runs on autopilot. And managers have access to the numbers they need on-demand without ever having to search for data or plug figures into formulas.
3. Can it Monitor the Competition?
Every hotel has direct competitors. Monitoring the rates that other properties are charging helps you adjust your own to remain competitive. Your RMS should be able to find competitor’s room rates via online travel agencies (OTAs), track how the prices rise and fall and report that information back to you in real time. This immediacy ensures you can make price adjustments swiftly, keeping your hotel attractive to budget-conscious guests.
4. Can it Streamline Marketing?
Marketing and revenue management are closely aligned, so your RMS should make it easy to integrate the two. For instance, hotels managers might identify the most lucrative upsell opportunities, then send out an email campaign to promote them. By streamlining this process, hotels can develop price points and messaging strategies that excite guests while simultaneously bringing in extra revenue.
5. Can it Manage All Channels?
No RMS is complete without an excellent channel manager. This tool helps you manage price, inventory and other details across dozens of different OTAs. Instead of making changes to each one, any update is reflected across all channels, saving you valuable time and input. More importantly, a detailed channel manager ensures that your revenue management strategy is consistent and error-free.
After you find an RMS that offers features specific to your needs, be sure to invest time in learning the software. Many RMSs have impressive bells and whistles, but only the best integrate their features to make an intuitive system that’s efficient and impactful for your operation. Find a system that impresses you, but make sure it’s also practical and engaging for you and your team to use.
RoomKeyPMS makes sophisticated revenue management available to hotels of all sizes. When you’re ready to seize every opportunity available, our team can help. Contact us for a consultation or demonstration.
Photo Credits: Shutterstock / Monkey Business Images
