What is a Hotel Revenue Management System?

The elementary goal of a business is to sell the right product to the right customer at the right time and particularly, for the right price via the right channel. Revenue management system software minces historical and current market data, combining these with future based demand signals to recommend a profitable and safe price range for each product, service or  accommodation type your hotel offers, uniquely for each channel through which you advertise and sell. Recently, software solutions have progressed beyond on-premises applications to cloud-based applications that can be delivered as SaaS (Software-as-a-Service) making it available for multiple users to access and login to the applications remotely so far as they are connected to the Internet.

Benefits of Using Revenue Management Systems in your Hotel. 

1. Accuracy in forecasting: An accurate forecast is carried out by assessing all available data including history and future-based signals to help hoteliers and managers understand and forecast expected demand for every single day for the entire 365 days each year into the future. Forecasts like this help all departments of the hotel to make their operations easier and supports in making marketing and sales decisions.
2. Creation of operational efficiencies: Automating your hotel’s revenue management by using a revenue management system means you no longer need to build spreadsheets and reports anymore. Furthermore, it eradicates the need for manually calculating the demand every day, and then entering the realized data into a spreadsheet and reporting system. This reduces work-time for employees and allows for more strategic thinking towards positively positioning their hotel in the market.
3. Drives more revenue to your hotel: A revenue management system can help hotels determine the best amount to charge for their rooms and services in real-time each day. By accurately pricing hotel rooms based on real-time supply and demand data, hotels can drive average daily rate, revenue and most importantly RevPAR Index. 
4. Higher Customer Satisfaction rate: Using a Revenue Management system means you offer your rooms, products, and services for the best profitable prices without even having to do any work to evaluate the value. Customers will be happier to patronize you when your prices are up-to-date and still very affordable. Due to the time, it may cost for your business rivals who don’t use Revenue management systems to evaluate their own metrics, your prices will always be more attractive since it flows with season and demand.
5. Accuracy in demand forecasting: A good forecasting algorithm embedded in your revenue management system would have the capacity to switch between long-term and short-term forecasts conveniently to enable revenue team members focus and curb negative impact of exceptional degrading events, such as COVID-19 which is hurtful to market demand.

Core Characteristic Functionality Depending on The Service Provider.

In the very essence, a revenue management system is custom built to help revenue managers perform these these tasks. 

– Set and optimize prices

– Automate manual workflows, and 

– Leverage large data sets to enable complex decision making with ease.  

Due to tech integration, other unique high value features may be offered by various SaaS providers. 

To make the most of your RMS, patronize PricePoint online store. The most relevant features are offered by our RMS, visit our website for more details on our products and services.