With the consistent growth of the global hospitality industry, analysts expect the hospitality market to reach 9,950 billion US dollars by 2028. This shows that hotels and resorts are still relevant as the hospitality industry grows, even with increasing inflation and wage stagnation potentially affecting profits. Despite this optimism, there are inevitable struggles and downturns that the industry will continue to face. This means that hoteliers need to be more creative in their revenue generation strategies than ever before.
Preparing for the worst involves choosing the right technology that exemplifies versatility in performing several functionalities at reasonable prices. This includes looking for an efficient revenue management system to keep up with the constant cycle of getting better guest experiences, positive reviews, and successful bookings.
But what is an RMS tool, and why does it matter? Let’s discuss its functionalities, benefits, and critical factors to consider when choosing your best option.
A Revenue Management System (RMS) is a comprehensive tool designed to optimize your hotel's revenue strategies, enhancing overall operational efficiency and performance. . Making informed decisions on your establishment’s revenue and profitability is essential, and RMS software can become your companion in these tasks.
A revenue management solution utilizes data from your hotel, predicting possible trends while analyzing important KPIs to generate better revenue opportunities. Through the software’s algorithm, it explores the current state of the following in real-time:
These metrics help generate ideal room rates for your hotel or hotels. For instance, HouseCount RMS displays all the information about all your properties on a centralized dashboard.
One of the primary reasons RMS tools are important is their efficiency in carrying out complex calculations. These software solutions can perform real-time market data tracking, which is impossible to accomplish manually.
Moreover, RMS tools make making price adjustments and declaring them on various distribution channels easier. This eliminates the hassle of logging into each system individually. It also means it’s easy to track important KPIs like RevPar, which helps increase your property’s top and bottom lines.
RMS tools are even more helpful in smaller hotels. These software solutions can help you maximize revenue in your property’s fewer rooms. On the other hand, a revenue management system also reduces the risk of manual errors in larger hotels.
Revenue management systems often come in software packages, offering various functionalities and features to help you get started. These tools allow the successful management of global hospitality chains, boutique accommodations, and small hotels.
Not all functionalities work the same across all hotels, but the following table outlines a few primary functionalities you must look for when choosing a hotel RMS platform.
|
Key Functionality |
Main Purpose |
|
Profitable Pricing Options Identification |
Look for effective ways to generate profitability across all your distribution channels |
|
Demand Forecasting |
Adjust prices based on past and current trends |
|
Lost Revenue Analysis |
Utilize ways to prevent cancellations and overbooking |
|
Proper Revenue Reports by KPIs |
Effective in comparing prices with your competitors |
|
Historical Inventory Data Collection |
Use historical data to make price modifications and comparison |
|
Segment and Channel-based Revenue Analysis |
Maximize your room’s revenue based on guests’ preferences |
|
Performance Analysis by Day or Week |
Identify strong and weak days to generate effective deals and promotions |
With this in mind, let’s go into detail about each of these functionalities and why they matter to your hotel.
One of the primary keys to successful hotel management is having a stable profit and revenue against competitors. An RMS hotel management tool identifies profitable pricing options, allowing you to set and optimize your room’s total prices.
Statistics revealed hotels that leverage RMS solutions experience a 5% to 20% increase in their overall RevPAR because of automatic price optimization per room.
A proficient RMS should be able to accurately anticipate the demand for your hotel's rooms, amenities, and other services. To maximize revenue, it employs dynamic pricing adjustments based on a range of factors, such as:
Because RMS tools are typically automated, they lessen the burden on your team members, reducing the wastage of resources and available time. Moreover, demand forecasting also allows your hotel’s departments to make smarter marketing, operations, and sales decisions.
Aside from data about revenue maximization, you must also know your property’s threats and weaknesses. It’s important that you understand what pricing strategies work and what don’t. This is why an RMS tool features lost revenue analysis for cancellations and overbooking.
This way, you can use the information to improve or modify your pricing strategies.
Regardless of your industry, key performance indicators or KPIs are critical to the success of your business. These metrics are helpful because you can use the data to generate effective ways to improve and become better than your competitors.
Revenue management platforms normally feature built-in analytics modules that allow revenue calculation per room or RevPAR, occupancy, ADR, and more.
The only way you can predict changes and trends is by studying past information. Collecting and analyzing historical data inventory helps determine which rooms your guests favor. Moreover, it enables you to identify available rooms you can place across distribution channels.
Historical data is also helpful in knowing when bookings are coming for specific dates.
Distributing your property’s rooms across all distribution channels can increase your revenue and profitability. It’s a digital marketing strategy to broaden your audience and gain new customers.
RMS tools can perform ideal revenue analysis based on your distribution channels and the types of guests. This way, you can properly allocate your rooms based on availability, group size, successful distribution channel, and more.
Doing a daily or weekly analysis of your property’s performance can help determine whether making last-minute price adjustments can benefit your hotel and guests. This also lets you know the best days when you get the most guests. You can then leverage this data for your future price modifications.
Aside from functionalities and essential features, choosing an efficient hotel revenue software means looking at several other factors affecting the software’s performance. Let’s consider critical factors that will help you choose the best.
Not everyone understands how hotel technologies work. When choosing hotel revenue software, you need one that does not need much of a learning curve. You cannot let your team members spend all their time learning how the software works. It’s a complete waste of time and effort.
Instead, choose software with a user-friendly interface that’s easily understandable by anyone, even beginners. Getting an RMs tool with a centralized dashboard is also best because analyzing and generating reports is easier.
An RMS tool is an investment. Because you’re spending a hefty sum for it. Look for options like HouseCount RMS that offer flexible pricing without getting locked into a tight contract.
Choosing one that offers a free trial version is also a great idea. This can enable you to experiment with the tool to check whether it suits your hotel.
The right RMS solution should allow easy implementation, especially when integrating with your current property management system. This saves a lot of time, allowing your team members to accomplish other valuable tasks.
Moreover, a supported revenue management system means a more seamless transition, putting less pressure on your team.
Remember that your RMS tool isn’t the only tech solution your hotel needs. You must also have a stable CRM, booking engine, PMS, and channel manager. At the end of the day, all your tech tools are interconnected, and they must effectively operate and work together.
Look for a revenue management system that allows two-way integrations in the most seamless way possible. This enables faster data-sharing, requiring no extra work from your team.
The right RMS should have a responsive and considerate support team you can contact in case of issues. You should be able to trust the software, so it’s easier to look for answers when problems arise.
Moreover, when the customer support of your RMS communicates efficiently with you, it prevents dissatisfaction. This prevents potential revenue loss.
Dynamic reports showcase accurate data analysis to generate better pricing strategies for your hotel. These reports feature different hospitality KPIs that can help you track your performance. Aside from being fully customizable, the reports generated should be easily exported.
An effective RMS tool solution boosts your hotel’s efficiency, management, pricing performance, and overall revenue. And Luxe Pricing’s HouseCount RMS gives you all that and more with its centralized dashboard.
HouseCount RMS is a cloud-based software solution that features real-time dynamic pricing for hotels, regardless of size. You can count on this tech tool to accomplish its two main goals:
HouseCount RMS features accurate real-time pricing, allowing hotels to stay ahead of their competitors. Moreover, because it’s fully mobile, you can trust HouseCount RMS regarding convenience and simplicity.
Revenue management ensures you sell the right room to guests with the best pricing strategy. There’s also the best distribution channel where you can get the most audiences possible. And to achieve all these, you need an efficient and effective RMS tool.
An RMS tech solution allows real-time pricing analysis to generate dynamic reports and facilitate better pricing strategies. When choosing one, consider browsing through HouseCount RMS’s features by Luxe Pricing.
It’s simple, effective, and provides the most strategic pricing methods for your hotel’s success. Schedule a demo today to learn more about how this RMS tool can help your hotel achieve financial success.