Let us find your solution 10 Best Revenue Management Systems for Hotels in 2021
Helping thousands of hoteliers make better buying decisions every month
Marriott
Denihan Hospitality Group
Fairmont
starwood
The Standard
Ace Hotel
Kimpton
Accor Hotels
Ace Hotel
Ace Hotel

What is a hotel revenue management system? Revenue management software automates the process of using analytics -- mainly supply and demand -- to determine the right price for hotel rooms to maximize revenue and profitability. This category of software is also referred to as a "yield management system", "pricing engine" or an "RMS". The primary goal is to sell the right product to the right customer at the right time for the right price on the right channel. Revenue management software ingests historical and market data, combines this with forward-looking demand signals and recommends a rate for ea... Read the full REVENUE MANAGEMENT SYSTEMS software overview

10 Best Revenue Management Systems

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2021 Best Hotel Software
Hoteliers voted IDeaS as the #1 Revenue Management Systems provider in the 2021 HotelTechAwards
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IDeaS Revenue Solutions

HotelTech Logo score
HT SCORE
100 out of 100
Hotel Tech Score is a composite ranking comprising of key signals such as: user satisfaction, review quantity, review recency, and vendor submitted information to help buyers better understand their products.
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IDeaS, a SAS company, is the world’s leading provider of revenue management software and services. With over 30 years of expertise, IDeaS delivers revenue science to more than 1...

Geography: Regional
Geography: Global Verified Customer Support: Yes No
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2021 Best Hotel Software
Hoteliers voted IDeaS as the #1 Revenue Management Systems provider in the 2021 HotelTechAwards
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2021 Finalist HotelTechAwards
Hoteliers voted Duetto as the #3 Revenue Management Systems provider in the 2021 HotelTechAwards
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Gamechanger by Duetto

HotelTech Logo score
HT SCORE
100 out of 100
Hotel Tech Score is a composite ranking comprising of key signals such as: user satisfaction, review quantity, review recency, and vendor submitted information to help buyers better understand their products.
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Duetto’s GameChanger is a revenue strategy powerhouse that lets your team develop and implement unique strategies quickly and easily. Ingesting more data than any other RMS, Gam...

Geography: Regional
Geography: Global Verified Customer Support: Yes No
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2021 Finalist HotelTechAwards
Hoteliers voted Duetto as the #3 Revenue Management Systems provider in the 2021 HotelTechAwards
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2021 Finalist HotelTechAwards
Hoteliers voted Atomize as the #3 Revenue Management Systems provider in the 2021 HotelTechAwards
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Atomize

HotelTech Logo score
HT SCORE
94 out of 100
Hotel Tech Score is a composite ranking comprising of key signals such as: user satisfaction, review quantity, review recency, and vendor submitted information to help buyers better understand their products.
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Atomize is an innovative, ambitious, and fast-growing Revenue Management Software (RMS) provider for hotels. Our core focus lies in increasing revenues, lowering costs to drive pr...

Geography: Regional
Geography: Global Verified Customer Support: Yes No
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2021 Finalist HotelTechAwards
Hoteliers voted Atomize as the #3 Revenue Management Systems provider in the 2021 HotelTechAwards
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2021 Finalist HotelTechAwards
Hoteliers voted RoomPriceGenie as the #3 Revenue Management Systems provider in the 2021 HotelTechAwards
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RoomPriceGenie

HotelTech Logo score
HT SCORE
89 out of 100
Hotel Tech Score is a composite ranking comprising of key signals such as: user satisfaction, review quantity, review recency, and vendor submitted information to help buyers better understand their products.
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RoomPriceGenie is a pricing tool designed for owners of independent accommodation who require the best possible pricing with the least possible work. RoomPricGenie is the ‘must-...

Geography: Regional
Geography: Global Verified Customer Support: Yes No
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2021 Finalist HotelTechAwards
Hoteliers voted RoomPriceGenie as the #3 Revenue Management Systems provider in the 2021 HotelTechAwards
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2021 Finalist HotelTechAwards
Hoteliers voted Pace Revenue as the #3 Revenue Management Systems provider in the 2021 HotelTechAwards
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Pace Revenue

HotelTech Logo score
HT SCORE
89 out of 100
Hotel Tech Score is a composite ranking comprising of key signals such as: user satisfaction, review quantity, review recency, and vendor submitted information to help buyers better understand their products.
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Pace provides industry-leading pricing to properties of all sizes around the world with hourly, automated optimisation. Pace's dedicated data science team is constantly developing...

Geography: Regional
Geography: Global Verified Customer Support: Yes No
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2021 Finalist HotelTechAwards
Hoteliers voted Pace Revenue as the #3 Revenue Management Systems provider in the 2021 HotelTechAwards
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2021 Finalist HotelTechAwards
Hoteliers voted BEONPRICE as the #3 Revenue Management Systems provider in the 2021 HotelTechAwards
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BEONPRICE

HotelTech Logo score
HT SCORE
88 out of 100
Hotel Tech Score is a composite ranking comprising of key signals such as: user satisfaction, review quantity, review recency, and vendor submitted information to help buyers better understand their products.
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Beonprice is bringing the value of revenue management technology to a new level. While data-drivenly optimizing your RevPAR, the Hotel Quality Index (HQI™) is the nuance that co...

Geography: Regional
Geography: Global Verified Customer Support: Yes No
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2021 Finalist HotelTechAwards
Hoteliers voted BEONPRICE as the #3 Revenue Management Systems provider in the 2021 HotelTechAwards
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2021 Finalist HotelTechAwards
Hoteliers voted SPOTPILOT as the #3 Revenue Management Systems provider in the 2021 HotelTechAwards
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SPOTPILOT

HotelTech Logo score
HT SCORE
83 out of 100
Hotel Tech Score is a composite ranking comprising of key signals such as: user satisfaction, review quantity, review recency, and vendor submitted information to help buyers better understand their products.
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As an innovative Revenue management solution, SPOTPILOT helps the hospitality industry (hotels, Camping etc...) to boost their profit. Easy to implement (SaaS software), SPOTPILOT...

Geography: Regional
Geography: Global Verified Customer Support: Yes No
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2021 Finalist HotelTechAwards
Hoteliers voted SPOTPILOT as the #3 Revenue Management Systems provider in the 2021 HotelTechAwards
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2021 Finalist HotelTechAwards
Hoteliers voted RevControl as the #3 Revenue Management Systems provider in the 2021 HotelTechAwards
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RevControl

HotelTech Logo score
HT SCORE
81 out of 100
Hotel Tech Score is a composite ranking comprising of key signals such as: user satisfaction, review quantity, review recency, and vendor submitted information to help buyers better understand their products.
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Suitable for Hotels and Hostels. AutoPublish for automated rate updates to PMS or Channel Manager. Rate recommendation per room type category not only based on the PMS data but al...

Geography: Regional
Geography: Global Verified Customer Support: Yes No
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2021 Finalist HotelTechAwards
Hoteliers voted RevControl as the #3 Revenue Management Systems provider in the 2021 HotelTechAwards
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2021 Finalist HotelTechAwards
Hoteliers voted RateBoard GmbH as the #3 Revenue Management Systems provider in the 2021 HotelTechAwards
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RateBoard

HotelTech Logo score
HT SCORE
81 out of 100
Hotel Tech Score is a composite ranking comprising of key signals such as: user satisfaction, review quantity, review recency, and vendor submitted information to help buyers better understand their products.
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Automated price optimization for small and independent Hotels & Resorts. Through an automated machine learning algorithm, we increase hotel revenue by an average of 8%. RateBoard ...

Geography: Regional
Geography: Global Verified Customer Support: Yes No
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2021 Finalist HotelTechAwards
Hoteliers voted RateBoard GmbH as the #3 Revenue Management Systems provider in the 2021 HotelTechAwards
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2021 Finalist HotelTechAwards
Hoteliers voted Kriya RevGEN as the #3 Revenue Management Systems provider in the 2021 HotelTechAwards
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Spider by Kriya RevGEN

HotelTech Logo score
HT SCORE
80 out of 100
Hotel Tech Score is a composite ranking comprising of key signals such as: user satisfaction, review quantity, review recency, and vendor submitted information to help buyers better understand their products.
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Kriya RevGEN is an innovative hotel revenue management service developed by hotel owners, seasoned revenue managers, and software engineers to fill the need of multi-brand hotelie...

Geography: Regional
Geography: Global Verified Customer Support: Yes No
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2021 Finalist HotelTechAwards
Hoteliers voted Kriya RevGEN as the #3 Revenue Management Systems provider in the 2021 HotelTechAwards
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Recent Revenue Management Systems Articles

Advanced Shouldn't Mean Convoluted: The Benefits of Lean Revenue Management

by
Alexandra Fjällman
3 weeks ago

COVID-19 sped up a trend in revenue operations (RevOps) across the whole world of business. A recent survey by Forrester found that there’s been a massive shift to centralized RevOps. This comes as many companies begin seeing revenue as more than just an outcome. Instead, they now understand it as a result of a complete business process and collaborating commercial teams.  However, Forrester shows that success with this approach comes from more than revising an organization’s structure. An optimized operation model combined with a comprehensive revenue management charter seems to be the recipe for long-term success. This charter should align revenue planning, technology, processes, data and measurement throughout the company.  Breaking up silos in hotel commercial teams has been a hot discussion topic for almost ten years now. However, many of these silos are still a big part of many hotel operations today. In many cases they’re even augmented by specialized tech tools that serve one team and all but exclude the others (e.g., a revenue management system - RMS). One thing has become clear: integration and automation of a hotel’s tech stack are essential to centralizing RevOps. This is why today’s leading SaaS providers are adjusting their tools to facilitate organizational alignment.  In the pandemic’s aftermath, businesses have the chance to archive their long-established structures. Lean, centralized commercial teams can take over and leverage integrated technology, automated processes and cross-functional accountability for success.    Revenue, Gut instinct, and Effort  Up till now, generating revenue at hotels had more to do with gut feeling, knowing the market and hard work than with collaboration and strategy. Many times, poorly aligned initiatives by general management, marketing, revenue management and sales led to lost chances and investment, revenue dilution and internal disputes. Despite this situation having a lot of room for improvement, the data and communication silos in hotels have made it hard to bring about lasting change.    Letting Technology Take You on a Detour Thinking that technology is the solution to all issues is a common mistake. Yes, revenue management tools have developed by leaps and bounds in recent times. Technology today is more powerful than most experts would have deemed possible. It allows hotels to adapt to dynamic markets and make the most of every revenue opportunity. But RMSs were developed primarily for revenue managers - a small group of experts in a single field of the industry. To ensure they deliver on the promised ROI, many RMSs demand a lot of training time and continued interaction due to their complexity.  A well-trained revenue professional who can leverage a system’s full capabilities can create fantastic results. However, technology is also known to cause operational roadblocks. The sales and marketing teams or the GMs don’t have the time to learn the ropes of intricate legacy RMSs because they have their department’s own systems to look after. The same applies to revenue managers and technology used by other teams. In short, the more programs a hotel uses, the more likely it is to foster ongoing silo culture.    Using New Revenue Tools to Do More With Less The pandemic has led hoteliers to look at their operations differently. Today, there’s a desire to do more with smaller teams, decrease the staff’s workload, streamline day-to-day operations and make commercial teams work together more closely.  Commercial teams have begun changing as a result. Silos are opening up while marketing, sales and revenue teams lay old rivalries to rest. Now, teams work across several disciplines, and moving forward, they’ll be using a set of integrated tools instead of programs specialized on a single function. In revenue management, this includes automating time-consuming tasks like forecasting and rate optimization. It also covers the presentation of results and related information in an easy-to-read format everyone in the commercial team can understand and use.  At first, it may feel strange for revenue managers who are used to complex legacy RMSs, that manual case by case rate analysis is no longer needed to achieve excellent results. Today, smart hoteliers see that trusting an automated system with time-sensitive pricing tasks is giving them a competitive advantage.  Now that travel is slowly ramping up, competition between hotels will be strong. Using new and perhaps unusual ideas is a way for properties to differentiate themselves and create a base for future success.    Setting up a well-integrated tech stack, using automation where possible, and streamlining communication are the initial measures you can take to make this happen at your hotel.

Preparing for Demand Ramp-Up with the Right Revenue Strategy

by
Alexandra Fjällman
4 months ago

The world felt hopeful when the first COVID-19 vaccine was announced several months ago.  Today, vaccines are being distributed worldwide. Many countries are starting to relax restrictions and re-open their borders.  That’s fantastic news for the travel and tourism industry even without a clear timeline. We still know that local and regional recovery will begin as soon as governments give the go-ahead.  Now you need to ask yourself: is your property ready for the rebound? And if not, which tools will get you ready quickly?   COVID-19: The Effect on the Hospitality Industry Worldwide As the Covid-19 crisis unfolded, STR regularly shared performance trends and outlooks for every corner of the world. We take a short look at how Covid-19 hit leading hospitality markets and what we can expect down the road.  Europe Europe's average occupancy fell to 11.4% when lockdowns began in April. For all of 2020, average occupancy reached 33.1% thanks to a relatively strong summer season. Slow vaccination programs and a lasting second lockdown in most European countries leave us with a bleak outlook for the coming 90 days.  Asia After arrivals plummeted in February and March, average occupancy across Asia fell by 30%. However, since many countries in the region managed the pandemic well, several of them have already seen a rebound in domestic travel. In China, for example, the outlook is positive. There, the average occupancy rate is only 10% below that of 2019 among open hotels. Destinations that focus primarily on international guests, like Vietnam and Thailand, are still struggling more. But hopes are high that reopened borders will bring quick recovery.  Middle East Overall, the Middle East boasted a relatively strong performance in the past twelve months. Right now, its average occupancy even outranks China and the US. This is partly because destinations like Dubai never closed their borders. Still, current OTB business is rather low, especially given that the postponed EXPO 2020 is coming up.    Vaccination Campaigns Are Gaining Momentum World in Data and the Bloomberg vaccine tracker show the latest progress of global vaccination programs. Israel leads the list with 50% of people being fully vaccinated. The US and Chile have both passed the 11% mark. The UAE and Bahrain are getting ahead well, too. The faster this progress spreads around the world, the sooner pent-up travel demand will hit the market.  Given Europe’s strong summer season and China’s overall strong performance, the outlook is positive. But, of course, there is no set timeframe to work with. That’s why now is the best time for hoteliers to set up the tools they need for guidance in this incalculable time.   Winning During the Recovery Phase with a Powerful RMS Every region’s recovery phase will look different, so generalized predictions are pointless. Patterns from previous crisis bounce-backs or other historical data won’t help either since Covid-19 was so different from everything else. Despite all that, you must get ready for the ramp-up phase. Only then you’ll be able to seize every opportunity it offers you and get your business going again.    Collecting your data manually - an inadequate method Gathering data manually to inform your rate changes is still possible, but it should be a thing of the past. Staying on top of dynamic markets and detecting trends early on simply isn’t possible with this approach. Especially in the volatile recovery period, this could cost you many opportunities to drive revenue. Using an RMS (revenue management system) solves that issue by helping you set optimized rates every time demand shifts. But which capabilities should an RMS have? Read on to learn which ones are crucial for ramp-up, recovery phase, and beyond.   Forward-looking demand data If you want to make accurate revenue forecasts and create successful promotions, you need forward-looking data. This covers everything from overall search volume for your location and flight searches to length of stay queries. For the best insights, use an RMS like Atomize which breaks this data down by source market. Collecting this information manually would cost you hours and it would likely become outdated before you had a chance to evaluate it. Let your RMS gather this data to reveal emerging trends and high-demand dates in the future. Seeing this develop in real-time lets you optimize your revenue strategy ahead of your competition. That way you’ll be ready for every demand shift and have the chance to target high-potential source markets with tailored offers.    Automated, real-time pricing If you update your prices manually, you’ll always play catch-up with the market and will miss revenue-generating opportunities. A modern RMS with automated real-time pricing solves this problem in two steps. First, it continuously monitors your market for the slightest changes in demand. Whenever it’s necessary, the RMS will send you a new rate suggestion. You can approve or reject it manually. While this option gives you more control, the time it takes you to approve the suggestion creates a lag, and opportunities may be lost. Avoid this by going for fully automated rate updates. In that case, your RMS changes all prices automatically and they’ll always be in line with the most recent market developments. This option saves you hours of precious time and ensures you’re making the most of every opportunity.   A faster way to do group displacement analysis When event planners can start organizing in-person events again, you’ll get a lot of inquiries all at once. Analyze your options carefully. Does your future-facing data predict high transient demand for the date in question? If so, will it come via your website or high-commission OTAs? Evaluating these and other aspects will cost your team time and energy. Use an RMS to make faster, data-based decisions and get the most profitable contracts for your property.    Multi-property capability for property clusters If you’re in charge of several hotels, use an RMS with a multi-hotel set-up to save time. Instead of having different log-ins and windows for every property, you can see all your hotels’ data on a single dashboard. You’ll see immediately where to focus your attention, make changes and support your on-site team.    You’ve made it through this tough past year. You know that recovery is around the corner, so don’t let it sneak up on you. Get your hotel ready for returning demand and leverage a cutting-edge RMS to get a step ahead of your compset.  Yes, investing in new tech can feel like a financial burden these days. That’s why Atomize is offering a risk-free option that lets you benefit from their time-saving automation and forward-looking data when you need it most - during the recovery phase.  

The Future of Hotel Front Desk Software: PMS, CRS and Hotel CRM Are Converging

by
Hotel Tech Report
1 year ago

Dave Berkus knows hospitality technology more than nearly anyone. Back in the early 1980s, his company, Computerized Lodging Systems, dominated the nascent hospitality technology market with one of the first electronic Property Management Systems on the market.  The immediate popularity of the technology resulted in rapid growth for the company, which was recognized on the Inc 500 list -- twice. Dave also created FOSSE, the property management system technology that Marriott used for almost 36 years. Dave practically invented hotel front desk software and he has invested in hundreds of tech companies since - many of those in hotel and travel tech so he knows this market better than anyone. Today, there are over 700 property management systems for hotels. With such a dense thicket of choices, it's hard to imagine the early days of hospitality technology. These are the days when only a few players dominated, offering truly game-changing solutions that defined how hotels began using technology to operate more efficiently and profitably. Dave is also an accomplished angel investor, having achieved an impressive 97% internal rate of return from over 150 investments to date. His Wayfare Ventures unites five partners from AIG, TAJ Hotel Group and Starwood, alongside a board of accomplished travel industry veterans, to make early stage investments in travel technology startups. Hotel Tech Report’s Jordan Hollander recently enjoyed a wide-ranging conversation with Dave on the Hotel Tech Insider podcast, where the two discussed how Dave’s history in hospitality technology has shaped the way he sees the industry today. These are the most pertinent themes that reveal how this hospitality technology luminary sees the future of hotel tech, as well as what he looks for when evaluating both ideas and entrepreneurs for investment.   The future of the PMS With so many property management solutions competing for business, it's hard to envision a post-PMS future. Yet, this future is coming, Berkus says, due to the increased importance of the Central Reservation System. The CRS owns the guest name record, which has made it more of a centralized source of data than the PMS: The PMS systems are, for the chains at least, becoming increasingly less important, as they handle right now in-house functions only. Berkus notes that the cloud PMS companies of today are likely to be the players who evolve these CRS like capabilities so while he believes that their technology will remain a core piece of the tech stack, he believes that what it means to be a PMS will change more in the next 5-10 years than in the last 20 years combined. Guest history has shifted to the CRS, while the PMS has transitioned into a fully operational role for specific properties. As hotels have both consolidated and established micro-brands, the CRS naturally became the way to share guest preferences across the portfolio. The centralization of data cemented the role of the CRS at the center of modern data-driven personalization and marketing strategies. says Berkus:   Big Data's being used in very important ways but certainly not just from the PMS system anymore. The question then is: if the CRS could potentially supplant the PMS as the source of all-important guest data, will we need a PMS system in the future? Berkus says yes but the legacy PMS companies will be forced to innovate and more specifically open up their architecture to become platforms themselves because CRS, CRM and even Revenue Management companies of today have the requisite data necessary to become the center of the tech stack according to Berkus. Eventually, Berkus sees most hotels relying on a single cloud-based system that aggregates all functionality into one flow, which reduces errors and increases accuracy as it doesn't require passing information around multiple systems. A hybrid PMS/CRS/CRM solution means a single guest record that enables better, more accurate personalization. The consolidation of functionality also simplifies the tech stack and should help hotels effectively use existing data to power personalization at the individual guest level. A unified tech stack unleashes the full power of data-driven decision making, which will soon be table stakes for how hotels everywhere compete. Rather than relying on incomplete sets of data, hoteliers can constantly make decisions based on the holistic view. A unified tech stack can also be achieved through seamless integrations and Berkus says that “there will always be best of breed solutions in various categories.” This vision will take a while to achieve, and so the PMS will continue to play a critical role for hotel operations: If we look ahead ten years, it would be easy to see a single cloud-based system integrating everything from CRM to reservations to the accounting functions at the properties, all the way through all forms of marketing and follow-through. Even with this view, Berkus sees the potential for category leaders to dominate specific verticals, while still providing the essential services necessary to run a hotel. For example, revenue management, which may be a feature of a CRS or a standalone solution -- all depending on how an individual property derives its revenue, and the sophistication of its revenue generation strategies. Part of the problem, he says, is that people confuse hotel tech with quality hotel tech: just because a hotel has a system doesn't mean that it is a good system. For Berkus, this means that the hospitality technology industry has plenty of dynamism ahead of it and he believes that it’s far from maturity.   The transformative power of analytics For Berkus, the primary reason for the PMS’ uncertain future is due to its isolation from data and analytics. Even the most integrated systems have challenges when it comes to gathering data from disparate sources into a unified view. Even so, it’s the analytics on top of all of this data that drives profitable hospitality today. Whichever technology hotel uses, It must facilitate the types of analysis that drive “more capable decisions,” across the organization, says Berkus: Analytics are everything. The most important single change that's going to come is the fact that every piece of data that arrives at the central source will be analyzed. You're going to find that more capable decisions will be made to maximize revenue...based upon AI and data analytics. That's your future. The unsaid implications here is that hotels with a sub-par data and analytics approach will be left behind. Hospitality has become not just about the guest-facing product but also the hidden back-end of intelligent data capture and analysis. The top performers will effectively oscillate between analyzing the data and making clear improvements based on this analysis.   The data-driven hotel GM As data and analytics move to the core of a hotel’s operation, general managers must evolve their skill sets to match. While operations will never cease to be a part of a hotel general managers role, success in this role is increasingly about the ability to enhance profitability by effectively translating data analytics into actionable initiatives. Currently, GMs have a steep learning curve to build muscle memory around analyzing large amounts of data from disparate sources. As machines become more capable of doing the analysis on their own, the best GMs will be able to take action on the analysis presented by the tools to increase profitability, Berkus predicts: A manager has to be able to add value by adding revenue and by increasing guest satisfaction. Those two things are not necessarily the operational things that a manager today normally concentrates on. Marketing also matters more to the GM of the future. As marketing campaigns become data-focused, GMs will engage more deeply with their marketing teams to leverage a data-driven approach to spend marketing dollars more efficiently. It's all about the relevant message consumed in the right context, as GMs seek to add value in new ways.   Sourcing true pain points from sales and marketing Berkus is an active angel investor, and his recent announcement of Wayfare Ventures brings his focus to travel technology. When it comes to developing an idea, Berkus sees real value in entrepreneurs solving true pain points rather than perceived problems: I love it when somebody in marketing or sales develops a company and says “I feel the pain” and let's try and solve the need. As opposed to what I see most often, which is an engineer says I really got an idea and I'm going to make that idea work. The contrarian view is noteworthy in its opposition to the engineer-focused view espoused by many investors and technologists. Part of this view comes from the plummeting costs of cloud computing, as well as the prevalence of APIs which make it simpler to plug into an existing ecosystem without having to build as much technical infrastructure. Differentiation comes less from tech and more from truly knowing the problem and having clarity around what needs to be solved -- rather than building a technically-flawless solution that misses the mark and fails to gain traction because it doesn't solve an actual problem. An early-stage solution that solves a real problem for a specific segment sells itself and helps a startup gain traction at a lower cost. It’s expensive to convince people that a product solves a non-existent problem.   Market trends poised for investment As far as trends in the market that have potential, Berkus points to artificial intelligence, robotics, and data analytics as three disruptive forces. However, things change fast. Apps are no longer the hot commodity they once were. Today’s opportunities are all about AI, robots, and data analytics. When evaluating the most exciting opportunities for investment, Berkus expands his view to encompass all of travel technology. This expanded view allows him to see opportunities from the interconnectedness of the travel and hospitality industries, which is a core part of the thesis at Wayfare Ventures. It all comes down to using modern technology to find new revenue that may not have been easy to uncover in the past. Whatever it be, there are opportunities now for revenue that weren't easily available in the past but are today. But the whole point is if guest satisfaction goes up and guests are able to do things they couldn't do before, like order a meal from text, then you're going to have better revenue and more satisfaction.   Enjoy the full podcast episode here. Outside of the points covered above, Berkus shares the fascinating foundational story of the first property and yield management tools for hotels.

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Recent Revenue Management Systems News & Community Updates

IDeaS Gears Up for 2021 AAHOA Convention

IDeaS
1 week ago

IDeaS Revenue Solutions, the world’s leading provider of revenue management software and services, announced it will participate as a Platinum Level sponsor at the upcoming Asian American Hotel Owners Association (AAHOA) convention and trade show in Dallas, August 3-6, 2021. IDeaS is planning a host of events and contact points to engage the franchisee and owner community in preparations for the new challenges of the post-COVID era. Elements of the expanded partnership with AAHOA include: · Growing ties with AAHOA membership – IDeaS expands its ties with AAHOA and will participate in regional events and sponsorships such as future leadership events, webinars and publishing for the educational benefit of AAHOA members. · Happy hour podcast with Glenn Haussman – To celebrate the return of hospitality within the AAHOA community, IDeaS has sponsored a special edition of the Glenn Haussman “Night Audit” happy hour podcast. · Interactive session – Sanjay Nagalia, COO and CTO of IDeaS will speak to members on the trade show floor August 5, from 2:00 p.m. to 2:25 p.m. during an interactive session about critical franchisee revenue management considerations. · Trade show presence – IDeaS leaders will be on hand to discuss revenue challenges of the post-pandemic period with attendees at booth #535. Sanjay Nagalia, chief operating officer and chief technology officer, IDeaS, said: “IDeaS provides revenue management solutions to more than 15,000 clients worldwide, including over five thousand in the limited service and franchise space. We have developed solutions specifically to help franchise owners forecast, optimize and maximize revenues and move toward operational efficiency and excellence at their hotels. We are eager to help AAHOA members expand their revenue management efforts and look forward to being a valuable resource as we celebrate the return of travel.” For more information or to contact IDeaS to meet at AAHOA.

Duetto Partners with Spain’s Institute of Hotel Technology

Duetto
1 week ago

The Institute of Hotel Technology (ITH) has today entered a partnership with Duetto, hospitality’s innovative software as a service provider of revenue strategy solutions.  The partnership sees Duetto named as the preferred revenue management system for members of Spain’s National Confederation of Hotels (CEHAT). Working together, Duetto and ITH will provide industry support and revenue management strategy to the entire accommodation sector. Duetto will be involved in the ITH ‘Hotel Data Game’ regional workshops and will provide regular educational content to ITH’s associate members. Duetto will also have a leading role in the annual ITH Innovation Summit, which will take place October 5-6, 2021, in Madrid, Spain. “We're delighted to partner with ITH at this important time for hotels across Spain as business returns. We're looking forward to participating in ITH events and supporting its members and associations in their initiatives and opportunities starting with the Innovation Summit in October.  Thank you to everyone at ITH for making this partnership possible”, said Chris Crowley, SVP Global Sales, Duetto. “Collaborating with a company of the quality of Duetto is great news for ITH. Duetto, being the most innovative RMS platform in the country, helps hotels develop profitable strategies based on demand and enables hotels to maximize efficiency while gaining the agility to act more dynamically,” said Álvaro Carrillo de Albornoz, general director of ITH. Duetto has had an active presence in Spain for many years, counting the country’s two largest hotel companies among its portfolio of clients. NH Hotel Group has been running its hotels on Duetto since January 2016, while Melia International signed up for Duetto in August 2017. In total, more than 750 hotels run on Duetto in Spain. Globally, more than 4,000 hotel and casino resort properties in more than 60 countries have partnered to use Duetto’s applications.

Cloudbeds Introduces New Payments Solution To Further Streamline Hotel Operations

Cloudbeds
3 weeks ago

Cloudbeds, the fastest growing hospitality management platform, announced the launch of a fully integrated payments solution and a new Financial Services division in the US, Canada, UK, and EU. Cloudbeds Payments is a robust payment solution that provides hoteliers an affordable and efficient method of managing all types of payments. Cloudbeds Payments features a state-of-the-art terminal, transparent fees, built-in reporting, analytics, security, and world-class (in-house) support so hoteliers can focus on their guests rather than time-consuming payments acceptance and reconciliation.  Typically, hospitality payment solutions are complicated and time-consuming, which impacts guest relations with inconsistent and slow customer service that consume too much of a property owners’ time with management and reconciliation. Hoteliers can now avoid manual card entry and lengthy verification processes with third-party vendors. Instead, payments are now quick, easy, and completely integrated into the Cloudbeds platform. “The best part about Cloudbeds Payments is that it’s fully integrated into their existing interface.” says Tarek, Finance Manager, Convo 212 in Athens, Greece. “My guests pay directly on my website and it’s immediately reflected in their reservation and on our reports. It accepts all credit card payments, handles the verification process and makes reconciliation a breeze.” In keeping with its focus of innovating to help hoteliers build revenue, save time, and increase guest satisfaction, the Cloudbeds’ Financial Services division has built a next-generation solution that will save properties 10 to 15 hours per month in reconciliations. In addition to its world-class support team, Cloudbeds Payments offers an in-house dispute management team composed of industry experts who intimately understand the hospitality business to better support hoteliers and guests. Cloudbeds expects to roll out Payments to additional countries in the upcoming months, including Australia, Brazil, and New Zealand. “Cloudbeds is on a mission to empower lodging businesses with every tool they need to emerge from the pandemic successfully,” says Richard Castle, Co-Founder, and COO. “Cloudbeds creates a seamless experience that elevates every aspect of their business - from how their staff operates to their guest experience. Our payments solution is the first of several upcoming financial services designed to help lodging businesses spend more time with their guests and less time managing their property.”

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REVENUE MANAGEMENT SYSTEMS Category Overview

What is a hotel revenue management system?

Revenue management software automates the process of using analytics -- mainly supply and demand -- to determine the right price for hotel rooms to maximize revenue and profitability. This category of software is also referred to as a "yield management system", "pricing engine" or an "RMS".

The primary goal is to sell the right product to the right customer at the right time for the right price on the right channel. Revenue management software ingests historical and market data, combines this with forward-looking demand signals and recommends a rate for each segment and room type at your hotel, specific for each channel on which you are selling. Recently, modern software has moved from on-premise to cloud-based applications that are delivered as Software-as-a-Service, meaning multiple users can login to the applications from anywhere they have an Internet connection.

 

Benefits of Revenue Management Solutions

  • Accurate forecasting: An accurate forecast looks at all of the available data -- past history and forward-looking data -- to help hoteliers determine what their demand is going to be for every single day as far as 365 days into the future. Forecasts help each department in the hotel make smarter operations, marketing and sales decisions. 

  • Create operational efficiencies: Automating your revenue management with a revenue management system means hoteliers no longer have to build spreadsheets and reports, calculating the demand by hand every day, and then entering those numbers into a spreadsheet and reporting system. This frees employees up for more strategic thinking around positioning their hotel in the market.

  • Improve RevPAR: Revenue management software is designed to find your hotel’s optimal business mix, balancing occupancy and ADR to ultimately drive revenue per available room. 

  • Improve Net RevPAR / GOPPAR: More importantly, a modern revenue management system will place an emphasis on net revenue per available room, or RevPAR after operating costs like labor and acquisition costs are deducted. It’s critically important for hoteliers to focus on bottom line profitability (gross operating profit per available room) as well as top line revenue.

  • RevPAR Index: Perhaps the most important metric, RevPAR Index measures a hotel’s revenue versus it’s defined competitors in the market. If every hotel in the market sees revenue increases, RevPAR Index will show a hotel how its revenue has changed in comparison with the comp set.

  • Drive revenue: A revenue management system helps hotels determine how much to charge for their rooms 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. 

  • Forecast demand accurately: A good forecasting algorithm will be able to easily switch between long-term and short-term forecasts, to enable revenue teams to focus on the impact of exceptional events, such as COVID-19 on market demand.

 

Key Feature Functionality

Ultimately a revenue management system is designed to help revenue managers do 3 things: set and optimize prices, automate manual workflows, and leverage large data sets to enable complex decision making with ease.  Hotels that switch onto a revenue management system generally experience a RevPAR increase of between 5 - 20 % as a result of optimized automatic price setting per room type.  Hotels that use revenue management systems save between 20 - 40 hours per month by streamlining manual workflows. An RMS also serves to visualize complex data sets into an easy to use and easy to understand user interface that saves revenue managers from difficult manual calculations and cumberson spreadsheets.  Whether its pulling in thousands of records of historical data from your PMS, connecting to city-wide group demand data sets or integrating rate shopping data from competitors —an RMS helps bring all of this data under one roof and deliver it in a simple way that helps revenue managers make more informed & data driven decisions.

  1. Integrations - It’s important that your RMS integrates with your PMS, CRS, CRM and booking engine with a reliable, two-way connection so that the systems can share the right data.

  2. Open Pricing - Your RMS must be able to price room types and channels independently of each other, rather than in lockstep with a set BAR price. For example, on some days you want your AAA rate to be 10% less than BAR, on other days you may want it 1% less than BAR.

  3. Cloud technology - An RMS that runs on multi-tenant cloud architecture allows your systems to integrate and share data more seamlessly, and allows developers to push updates to your software in real time. No more purchasing new versions of software just to get the latest features.  

  4. Intelligent reporting - It’s important that your RMS be able to build, export and share your most critical reports. Revenue teams must be able to share reports at the push of a button with management, ownership and other departments within the hotel.

  5. Data Visualization - A good RMS not only presents your data in tabular reports, but allows you to visual your data and reports in graphical form. This allows revenue teams to better understand trends, outliers and patterns in data.

 

2021 Revenue Management Trends

Cloud technology. The hotel industry needs to finally move away from legacy tech. The black box sat in an on-property server room, or just tucked behind front desk, is no longer feasible. Cloud-based SaaS solutions enable hotels to deploy technology quicker, scale easier, and bring increased security, rather than running on a system that could be fallible to on property power outages.

Price Agility. The consumer is more price aware and savvy than ever before. Revenue teams need to pivot towards personalised pricing and targeted offers, yielding channels, segments, room types, and pricing rules such as MLOS independently to optimise on every opportunity. Custom pricing rules will become the norm as revenue systems become more agile in their pricing methodologies.

Controlled automation. An automated pricing system that is either ‘on’ or ‘off’ is no longer relevant; we’ve seen this with the COVID-19 crisis. Revenue teams need an autopilot system that can be applied only in specific circumstances, such as for a long-term date range, at a committed occupancy level, or for a specific segment. 

 

What Integrations Does a Hospitality Industry RMS Need?

Property Management System A strong two-way integration with your Property Management Systems allows your RMS to pull historical information on rates and revenue, analyze the data and then return an accurate matrix of pricing recommendations for each segment and room type. Ultimately an integration with your PMS will enable more efficient revenue management automation to save time and improve results.

Central Reservations System A strong connection between the RMS and the CRS helps hoteliers avoid failed updates, lost reservations and bad reports when data and files are not transferred accurately between the two systems.

Email Marketing and CRM An RMS-CRM connection is critical when hoteliers want to price based on a guest’s value to your property. Without this connection, hotels cannot price based on loyalty or past purchase behavior.  CRM systems rely on big data to efficiently segment guest profiles and revenue management system data is as rich is it comes.

Booking Engine - Without a connection between the RMS and the booking engine, the right recommended rates cannot be pushed to the guest at the time of booking.

 

Hotel Revenue Management Software Implementation

Once the contract is signed and discovery is complete, the typical rollout timeline for a revenue management system is 8-12 weeks but some providers today are able to live in under one week.

 

Key Features of Revenue Management Software

1. Automation: With the push of a button, your price recommendations will instantly be reflected in your PMS. Neither analysis nor manual updates are required. Choose between accepting your recommendations one-by-one, in bulk or even override specific recommendations with ease.

2. Price sensitivity chart: When setting the room price you need to take both internal and external data into consideration. The Price Sensitivity Chart is a graph illustrating the current optimal room price in relation to change in revenue and occupancy rate. It helps you to make sure your price points are accurate.

3. Open pricing: Your RMS must be able to price room types and channels independently of each other, rather than in lockstep with a set BAR price. For example, on some days you want your AAA rate to be 10% less than BAR, on other days you may want it 1% less than BAR.

4. Pacing reports: Pacing reports help you always know your pace, down to pacing at a room type level. You can compare your pacing with the reference arrival date of choice.

5. Data visualization and business intelligence: A good RMS not only presents your data in tabular reports, but allows you to visualize your data and reports in graphical form. This allows revenue teams to better understand trends, outliers and patterns in data. It’s important that your RMS be able to build, export and share your most critical reports. Revenue teams must be able to share reports at the push of a button with management, ownership and other departments within the hotel.

6. Group booking module: A Group Booking Price Module not only provides you with the current optimal group price, but also a secondary price, which is the lowest price point you should accept because you would be better off, from a yield perspective, to sell the inventory on the open market instead.

 

FAQ

How does a revenue management system work?

A revenue management system analyzes a combination of competitor rates, historical rates, market dynamics, and inventory levels to predict demand and provide rate recommendations. A good revenue management system will automate the entire process and generate rates that can maximize revenue and profitability.

 

What are the tools of revenue management?

A revenue manager leverages tools like revenue management systems and rate shoppers to analyze competitor pricing and set a rate strategy that will maximize revenue. In addition, a revenue manager might study market trends in STR reports, analyze data in a business intelligence tool, and use promotional tools in their booking engine, PMS, or channel manager.  

 

What is the main goal of revenue management?

The main goal of revenue management in hotels is to fill the right room at the right time for the right price. Revenue managers want to maximize the rate potential of each room night, but without setting prices too high that nobody will book.

 

What is the role of a revenue manager?

The revenue manager’s job is to manage pricing strategies to maximize revenue and profit. In a hotel, the revenue manager sets rates, deploys promotions, analyzes competitor pricing, and decides when to open or close certain rate plans or promotions. A revenue manager usually works closely with the sales and marketing departments.

 

What are the benefits of revenue management?

Revenue management enables the business to stay competitive in the marketplace by adapting prices to changes in supply and demand. Revenue management strategies ensure a business isn’t leaving money on the table by charging rates that are too low, nor setting prices too high that nobody will purchase.