A Revenue Management Software (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, including Chain Hotels, Independent Hotels, BnB, and more.
Table of contents for this article:
- What are the benefits of using a RMS?
- What features should you consider?
- List of Best the Revenue Management Systems
What are the benefits of using a RMS?
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.
High accuracy
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.
Improved RevPAR
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 features should you consider?
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 tools 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.
Integrations
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.
Open Pricing
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.
Cloud technology
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.
Intelligent reporting
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.
List of Best the Revenue Management Systems
Note that the products listed below are ranked by order of preference with HotelMinder staff, customers & website users. It's important to understand that one solution cannot suit all types of properties: The best Revenue Management System for a 500 bedrooms luxury hotel in Las Vegas has very little in commun with the one for a 25 rooms boutique hotel in the middle of rural Tasmania.
We usually work with independent properties and groups ranging from around 20 to 200 units. The solutions listed below match the typical needs and budget of this kind of businesses.
Feel free to look at and demo some of the Revenue Management Systems listed below, several of them with special offers and discounts only for HotelMinder users!
If you want more choice have a look at our Partners Marketplace, and if you would like professional guidance on what solution to choose for your business, consider booking a 1-to-1 Tech Advice Session with an HotelMinder Expert.