Change can be intimidating. It disrupts our routines, pushes us out of our comfort zones, and challenges us to adapt. However, the beauty of change lies in its transformative power as it gradually becomes the new norm.
When I joined IDeaS in 2017 as a Client Relationship Manager, the prevailing pricing model among my clients was the BAR (Best Available Rate) plan, so I learned IDeaS G3 Revenue Management System (RMS) from a rate plan perspective. When IDeaS introduced Continuous Pricing, which calculates the optimal room rate between a floor and ceiling—without the need for rate tiers or fixed room type offsets, everything I learned about rate plans was blocking my brain from grasping this new concept.
Since then, my clients seamlessly transitioned from BAR rate plans to Continuous Pricing, and the feedback has been overwhelmingly positive. The Continuous Pricing evolution, now the industry’s prevailing pricing method, has brought about unprecedented ease in managing rates and increased revenue—an irresistible combination for every hotelier. But IDeaS didn’t stop there.
Innovation that enhances rate management and distribution
Because hoteliers typically have a variety of products linked to, or derived from, the “Best Flexible Rate”, it has become common practice to use fixed discount levels due to complexity or limitations in selling systems. That means leaving money on the table.
IDeaS introduced Linked Products to help revenue managers go beyond static discounts and provide dynamic discounting of linked rates. This enables them to capture additional revenues that are out of reach with today’s manual processes.
When using Linked Products to define key rate plans, such as advance purchase, loyalty tiers, packages, or promotional rates, G3 RMS will automatically capture incremental revenue on every room sold by dynamically adjusting discount percentages or amounts based on demand patterns such as season, days to arrival, day of week, and room type. You’ll maximize revenue from each guest by automatically applying the right discounts at the right time. But wait, there’s more!
Introducing… Innovation that opens more revenue opportunities
Today, distribution processes and pricing decisions are complicated by complex configurations and limitations to only dynamically price one rate – the daily rate. Hoteliers still find themselves managing numerous rates that stem from BAR or are priced independently, for example, weekly or monthly rates. This requires hoteliers to balance the right daily rate while accounting for the impact any change would have on all linked rates—a compromise that often leads to lost revenue opportunities as not all rates can be properly positioned to the right guest.
To solve this challenge, IDeaS once again leads the industry with the introduction of Independent Products. This capability enables G3 RMS to optimize multiple base rates independent of each other – such as daily and extended stay rates, allowing you to unlock new revenue potential and provide personalized guest experiences.
This may seem like a big change now, completely shifting the paradigm of managing rates, but in no time at all we will be fully embedded in the new method whereby G3 RMS is the single source of truth for managing products.
Sure, adapting to change can feel intimidating initially, but I’ve seen firsthand the benefits that come from embracing innovation in revenue management. Let’s welcome the next wave of change in the evolution of pricing with open arms and embrace the power of innovation and push the boundaries of what is possible. Together, we can shape the future of the hotel industry, driving progress, and creating unforgettable experiences for our guests.