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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 Finalist HotelTechAwards
Hoteliers voted Duetto as the #2 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 #2 Revenue Management Systems provider in the 2021 HotelTechAwards
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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
99 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 Atomize as the #3 Revenue Management Systems provider in the 2021 HotelTechAwards
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Atomize

HotelTech Logo score
HT SCORE
98 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 and fast-growing Lean Revenue Management Software built for hoteliers that want to do more with less. Our core focus lies in increasing revenues and opera...

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 Pace Revenue as the #3 Revenue Management Systems provider in the 2021 HotelTechAwards
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Pace Revenue

HotelTech Logo score
HT SCORE
91 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 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. RoomPriceGenie 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 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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Hoteliers voted BEONPRICE 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
84 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 D-Edge as the #3 Revenue Management Systems provider in the 2021 HotelTechAwards
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D-EDGE - NextRate

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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NextRate gives you clear price recommendations according to your competition, your environment (market trends, seasonality, upcoming events) and your pick-up. In just one click yo...

Geography: Regional
Geography: Global Verified Customer Support: Yes No
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2021 Finalist HotelTechAwards
Hoteliers voted D-Edge as the #3 Revenue Management Systems provider in the 2021 HotelTechAwards
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2021 Finalist HotelTechAwards
Hoteliers voted SiteMinder as the #3 Revenue Management Systems provider in the 2021 HotelTechAwards
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SiteMinder Insights (Pace)

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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Have the foresight to optimise your demand peaks and drive more business in the low season. Have the foresight to optimise your demand peaks and drive more business in the low se...

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

The Five Boxes Your New RMS Should Check

by
Alexandra Fjällman
1 month ago

Picking the perfect revenue management solution (RMS) for your hotel used to be a challenging process.  Luckily that’s different today. Now, you have a wide variety of easy-to-use RMSs to choose from and most of them are quicker to implement than legacy systems. This means getting your hands on a suitable RMS has gotten a lot less complicated.  That’s fantastic because a powerful RMS is crucial to understanding and making the most of unpredictable demand trends, especially in today’s volatile market.  In this post, you’ll find out how to choose the RMS that’ll help you with precisely that. And once you have it all set up, you’ll be on track to optimized rates, boosted profits and time-saving processes.    Integration Options With Other Tech Tools Any new tech solution you choose should seamlessly integrate with your current tech stack. For example, your new RMS should allow for a two-way integration with your PMS to ensure automatic data exchanges between the two systems. This cuts back on manual data entry which saves you time and reduces the risk of human error.  Consider this real-life example: A higher-than-average number of reservations comes in for a certain date. The PMS sends this pick-up data to the RMS which in turn ups the room rates for this day. It also sends these new numbers back to the PMS, so it can push them into the distribution system.  Look for an integration with a reputable business intelligence solution as well. This is important because an RMS needs both external and internal data to recommend optimal prices. Check where your RMS gets its external data from since its quality influences your results.    Data Types Used Your RMS’ forecast accuracy and its ability to optimise your prices depend strongly on which types of data the system uses for its calculations.  Start by looking at whether the RMS uses both external and internal data. Your property’s data on past results is a good gauge of what your business can achieve. But given recent events, it’s not the most reliable predictor for business in the short to medium term. This is why you need an RMS that incorporates broad market and compset data into its rate calculations. Of course, this doesn’t mean your RMS will just follow your competitors’ pricing tactics or start a price war. Instead, the system will examine how market rates impact pick-up at your property and make relevant price recommendations.  Next, it’s important to know if an RMS leverages both forward-looking and historical data. Since the pandemic, using historical data alone is no longer enough to predict demand trends because most established booking patterns have changed in the short to medium term. Incorporating future-facing information is the best way for the RMS to fully understand the market and make optimized rate recommendations.    Automation and Configurability Automation has gained extra importance since many revenue teams today are smaller than pre-Covid but still have the same workload. While most RMSs have automated at least some of the manual processes, the overall level of automation differs a lot between platforms. To save the most time and speed up your decision-making process, pick an RMS that lets you automate and customize as many steps as possible.  This brings you many benefits, like being able to cut back on manual market research and rate updates. You can also adapt to demand shifts faster and seize every opportunity to drive revenue. If you keep doing all this manually, you risk missing these chances and losing business. Address this problem by using an RMS which supports automatic, real-time rate updates.  Finally, today’s more customizable RMSs allow you to adapt which processes you want to automate. They let you choose if, when and where you want to change your rates yourself. This could be when you know something the system doesn’t, or if you’d rather manually manage rates for your top room categories.    A Good Fit for Your Pricing Strategy You’ll also need to check if your potential RMS is a good fit for your pricing strategy. Some RMSs optimise room prices only for your basic category. A set supplement matrix determines how much to adjust rates for the other room types. This may have worked in the past, but this rigid approach is not flexible enough for today’s dynamic markets.  An RMS that allows open pricing solves this issue. It understands that demand is different for each room type and will calculate the ideal rate for each one. This type of system can even evaluate how price changes for one room category influence demand for the others. Taking this into account is the way to continuously sell all room types at the ideal rate.    Organisational Aspects and Useability Yes, you’re only going to do it once. But knowing how your new RMS’ implementation process will work is important. Additionally, find out how they price their service. Is there a set-up fee? Do you pay a monthly flat fee, or does it depend on your revenue? Do they offer standard vs. advanced plans? The idea here is not to find ways to cut costs but to know exactly which ongoing expenses you’re incurring.  Ease-of-use and system maintenance are two more critical points. Unfortunately, many legacy RMSs require lengthy training. As a result, only specialized pros can get the most out of them and you end up with information silos at your hotel. The good news is that new-age platforms that connect with your remaining tech tools are usually easy to learn and use for all staff. This ensures that your team takes full advantage of your RMS. It also breaks down silos and encourages cross-departmental collaboration.  For the highest level of flexibility, choose an RMS that’s cloud-based, mobile-responsive and device-agnostic. That way your team can log on from anywhere they have a stable internet connection, whether it’s at the office, while working from home, or on the go. Given that flexible work arrangements are becoming more common, this aspect keeps gaining importance.  Lastly, a well-structured layout and the chance to export performance data and forecasts are crucial. This allows you to cut back on gathering and arranging data in presentations and lets you pull up the needed information in just a few clicks.    Since you know which five aspects to check your RMS for, it’s your turn now. How well does your current or potential future RMS perform? If you find that it doesn’t tick all the boxes, it may be time to look for another option… If you want more direction on the subject, get HotelTechReport’s free Ultimate Guide to Revenue Management Systems for expert guidance on finding the RMS that works best for you.  

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

by
Alexandra Fjällman
5 months 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
8 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.  

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Recent Revenue Management Systems News & Community Updates

Millennium Hotels and Resorts Extend Partnership with IDeaS, Transition 40-plus Properties to G3 RMS

IDeaS
1 day ago

IDeaS, a SAS company, the world’s leading provider of hotel revenue management software and services, announced today its expanded partnership with Millennium and Copthorne Hotels. Following a thorough market evaluation and piloting phase, the global hotel group will transition to IDeaS G3 Revenue Management System (RMS) at over 40 properties across Europe, North America, the Middle East and Southeast Asia. Millennium Hotels and Resorts (MHR) invested time and resources to conduct a live evaluation of leading hotel RMS solutions. IDeaS G3 RMS won out for the quality and speed of its data integration. G3 RMS also earned points for its many enhancements, including room-type pricing and forecasting, group evaluation, “What-If Analysis” to determine pricing change impact and Investigator, which provides greater clarity around the system’s automated pricing and forecasting decisions. Saurabh Prakash, group vice president, digital marketing, revenue management, loyalty and distribution, MHR, said: “Having the right revenue management system is key to drive performance for our hotels. With the amount of good revenue management systems available in the market, we wanted to have a fair evaluation. We went through a thorough, non-favoritist, points-based exercise to pilot each system. We assigned points against what was good and bad—evaluating everything under the hood from commercials to features to speed to market and customer service. One of the turning points was the G3 RMS deployment at M Social Singapore. The efficient and smooth deployment was one of the key winning factors for IDeaS. I look forward to working together with the IDeaS teams closely for blue-ocean thinking in revenue management and move forward our relationship from strength to strength in the years ahead.”  Ravi Mehrotra, president, founder and chief scientist, IDeaS, said: “We are honored to continue serving Millennium and Copthorne’s prestigious, worldwide hotel group. At IDeaS, we proudly stand by our entire suite of revenue science solutions and firmly believe in the superior capabilities of G3 RMS, so we were delighted to learn Millennium and Copthorne arrived at the same conclusion after conducting a rigorous market evaluation. We look forward to continuing to work closely with the hotel group as they begin an exciting new era in their revenue management journey.”   ABOUT MILLENNIUM HOTELS AND RESORTS Millennium Hotels and Resorts (MHR) is the global brand of Millennium and Copthorne Hotels Limited, a global hotel company which owns, manages and operates over 145 hotels across some 80 locations. It has several distinct hotel brands, including Grand Millennium, Millennium, M Social, Copthorne and Kingsgate, throughout Asia, Europe, the Middle East, New Zealand and the United States. Its properties are in key gateway cities such as London, New York, Los Angeles, Paris, Dubai, Beijing, Shanghai, Seoul, Tokyo, Singapore and Hong Kong. Occupying the best locations around the world, MHR has the perfect address for business and leisure travellers. https://www.millenniumhotels.com/  

Ligula Hospitality Group Has Chosen Atomize as Exclusive Revenue Management Software Provider for Their Entire Portfolio

Atomize
2 days ago

Ligula Hospitality Group, a major hotel group headquartered in Sweden with 45 properties and 6060 rooms across 6 brands in Sweden, Denmark and Germany, has chosen Atomize as their Revenue Management Software (RMS) provider.  After a performance benchmark across 10 hotels on full automation, Atomize was chosen as the exclusive RMS provider for Ligula Hospitality Group and all of their hotel brands; ProfilHotels By Ligula, Collection By Ligula, Motel L By Ligula, Good Morning Hotels By Ligula and Apartments By Ligula.  Ligula Hospitality Group chose Atomize’s application to fully automate price optimization and support them in growing their RGI and RevPAR across their portfolio, combined with gaining the operational efficiencies through price automation. Ligula Hospitality Group has already started deploying Atomize across its portfolio and plans to have all properties activated by December.  Ligula Hospitality Group has in recent months reviewed their entire tech stack and invested heavily in a digitalization process to improve operational efficiencies and increase overall profit margin.  Ligula required a modern cloud based, easy-to-use and fully automated revenue solution that integrated seamlessly into their tech stack.  Atomize with its unique real-time price optimization engine, multi-property dashboard, future demand insights and seamless 2-way integration with their PMS provider MEWS ticked all the boxes. By emerging strongest from the performance benchmarking period, Atomize became the chosen RMS provider.  “Our team was impressed by the fully automated yielding performance that Atomize delivered during the benchmark period. Atomize is a next gen RMS solution and we feel confident that the application will help us grow by increasing our revenues, and at the same time increase the overall operational efficiency for our staff”, says Fredrik Ternsjö, Head of Revenue, Distribution & Systems at Ligula Hospitality Group.   “Atomize is very happy to partner up and grow with Ligula. We are experiencing an overall increased demand for lean, fully automated and responsive revenue solutions from hotel groups.  In order to run a sustainable operation at scale, hotel groups need to protect their cost base and at the same time leverage the benefits of automation.” said Alexander Edström, CEO at Atomize.       ABOUT LIGULA HOSPITALITY GROUP Ligula Hospitality Group AB is the parent company in a group of companies that develops concepts and brands in the hotel and restaurant industry. We run hotels under the brands ProfilHotels By Ligula, Collection By Ligula, Motel L By Ligula, Good Morning Hotels By Ligula and Apartments By Ligula. Furthermore, Ligula Hospitality group operates five hotels under a franchising agreement with Radisson Hotel Group. Connected to our hotels, we also run restaurants under brands such as Angelini, La Gare, Sofiehof, Statt Verandan, The Library Bar, Pipes of Scotland and Oak Bar.  

Duetto and Design Hotels Partner to Deliver Revenue Management Solutions to Boutique Hotels

Duetto
1 week ago

Duetto, hospitality’s innovative software as a service provider of revenue strategy solutions, has been selected by Design Hotels as its Preferred Vendor for revenue solutions for its independent hotel property members. The partnership agreement enables Design Hotels members to contract with Duetto for its GameChanger application for pricing optimization and ScoreBoard for intelligent reporting. Headquartered in Berlin, with offices in London, Barcelona, New York City, and Singapore, Design Hotels offers hospitality services to a network of over 300 independent hotels in more than 60 countries worldwide. Working closely with Duetto, Design Hotels will offer member properties access to its Revenue Management Fundamentals service, which provides hotels with a revenue analysis and audit, and post-implementation support with pricing recommendations once they have installed Duetto. Together, the two companies will help foster revenue technology adoption and pricing best practices for the boutique hotel segment. Hotel Arena in Amsterdam is a member of Design Hotels and has been running on Duetto since February 2021. “It's working really well. I’ve switched on AutoPilot, and as far as flexing discounts go, Duetto handles this brilliantly,” said Nicolas Stockman, Revenue Manager, Hotel Arena. “Every day, I go straight into ScoreBoard, so I can confidently base new pricing rules on the figures it shows me. It’s so easy to interact with the system.”  “Design Hotels was looking for a partner with competencies in forecasting and pricing automation, specifically for small to medium-sized boutique hotels,’’ said Simon Schwitallik, Head of Channel Analytics at Design Hotels. “We want to enable smaller-scale properties with a fluid pricing strategy and the technology to support this endeavor, and Duetto does exactly that. It’s a great fit because hoteliers can easily understand why the system increases or decreases prices based on Duetto’s ideal booking curve, and therefore optimizes prices by room type.”  “Independent hotels are an important segment to Duetto, and we are proud to be working alongside Design Hotels to deliver a tailored pricing platform to their catalog of outstanding boutique properties,” said Michael Schaeffner, VP of Sales, EMEA, Duetto. “At a personal level, I am delighted to be working with the Design Hotels team once more. This is where my career in hospitality began, and I am excited to now be helping this membership of  independent properties to optimize their pricing strategies and achieve best-in-market pricing power too.”

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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. 

 

 

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