Here’s to making a well-informed revenue technology investment today for a more profitable tomorrow.
The considerations can feel endless when looking for the best revenue management system (RMS) to grow and scale your business, but knowing what to look for—and, more importantly, who to trust—will position you to make informed, smarter, and, ultimately, more profitable decisions. That’s why IDeaS has released its new Hotel Revenue Management Ultimate Buyer’s Guide to help the hotel industry:
- Understand next-gen revenue management fundamentals
- Consider the latest industry outlook and trends
- Formulate a business case for an RMS investment
- Identify steps needed to prepare your business
- Evaluate and select a technology partner for scale
At the end of the day, the vendor you select should be more than a technology provider. You deserve a revenue optimization partner with a firm understanding of your industry and business concerns.
Download the guide now to ensure you’re asking the right questions of your future RMS partner.
RMS Myth Busting
Despite the increasingly data-focused, technology-enhanced state of the industry, misconceptions still linger about the importance of revenue management technology within the hospitality sector. Here are five common revenue management myths and why they’ve been officially busted by today’s automated revenue management technology.
MYTH #1: We don’t have any issues manually setting our rates, so we don’t need an RMS.
Manually collecting, evaluating, and calculating data is time-consuming and highly susceptible to human errors…and hence lost revenue. By contrast, a modern RMS allows for an in-depth analysis to be made of a hotel’s performance. It will also bring increased accuracy and consistency to forecasting and reporting, making it easier to determine the best price to optimize demand and boost revenue.
MYTH #2: I need a dedicated onsite revenue manager to use an RMS.
With hotel staff increasingly becoming more mobile, revenue managers are often responsible for multiple properties across multiple time zones—and they need constant and instant access to their RMS. Cloud-based, SaaS technology and mobile apps allow them to make informed pricing decisions by providing critical demand forecasts and rate analysis including historical behaviors, seasonal patterns, recent trends, and competitor rates, anytime, anywhere.
MYTH #3: An RMS is too expensive and only used by large global hotel chains.
As revenue management solutions have been successfully adopted by larger hotel chains and properties, it has led to a misconception about the cost and ROI smaller operators can expect. However, many leading revenue management providers work with budget and midscale hotels in both city and resort locations. There are also entry-level platforms for hotels starting their revenue management journey, such as pricing system technology that focuses on setting and distributing the right rates
to the right guest at the right time.
MYTH #4: My hotel is still under construction; I can’t consider revenue management until I have been operating for at least one year.
There are many areas of revenue management that must be considered throughout the pre-opening phase of a hotel—ranging from establishing market segment revenue and sales strategies, undertaking comprehensive competitor evaluation, pricing research, pricing processing, and forward planning of market demand cycles. An integral component to pre-opening should be considering the optimization of room-type configuration, as well as the implementation and integration of revenue management technologies with the hotel’s IT infrastructure and platforms from the very start. Leading RMS solutions also have unique data-building capabilities to jump-start a brand-new hotel complete with scientifically-predicted sales projections and booking patterns by room type to provide the expected demand.
MYTH #5: Automated RMS proliferation will put revenue managers out of work.
These days, AI’s domination of our workforce is a common fear, but human interaction, input, and problem-solving are still vital to the revenue management process. With an automated RMS performing the more mundane, time-consuming tasks, revenue managers are enabled to focus more on forward-looking strategy and find new ways to enhance profitability while still maintaining control over all decision outputs. An RMS solution won’t replace the hotel revenue manager—it will empower them.