Revenue Management Systems give you greater control over your revenue potential by taking a number of variable factors into consideration, such as competition pricing, available rooms, current pricing, in an attempt to drive up your revenue.
Most providers in the market will need connectivity to your Property Management System (PMS), which can be challenging since not all hotels use the same systems. New connections may need to be developed and thoroughly tested to ensure they work correctly, which can be time consuming and costly.
A relatively new concept for most hoteliers is the idea of ‘Predictive Analytics’ which is very powerful, however it does have its challenges! The idea is that the revenue management system will take your current availability, current pricing, current competitor pricing into account, and then offer optimized pricing suggestions.
Does it work for everyone? Bear in mind that some destinations have multiple offers applying at different lengths of stay. Suggestions made at a minimum length of stay of one night may not be commercially viable for longer lengths of stay, meaning you may not agree with the proposed suggestions.
With that said, this does not mean that you should not try predictive analytics, there are some outstanding companies in the market!
When choosing a revenue management system provider, make sure you have a thorough consultation and you’re very forthcoming about the various systems you’re already using. The technology provider will be able to quickly identify any technical challenges that may hinder benefiting from the most efficient use of their revenue management systems.
Price points can vary considerably. Most will be sold on a ‘Software as a Service’ (SaaS) basis (Delivered over the internet and charged on a subscription basis).
This is another key area that requires adequate time to ensure you obtain maximum benefit for your business.