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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2022 Best Hotel Software
Hoteliers voted Duetto as the #1 Revenue Management Systems provider in the 2022 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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2022 Best Hotel Software
Hoteliers voted Duetto as the #1 Revenue Management Systems provider in the 2022 HotelTechAwards
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2022 Finalist HotelTechAwards
Hoteliers voted IDeaS as the #2 Revenue Management Systems provider in the 2022 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 G3 Revenue Management System (G3 RMS) delivers scientific pricing and rate availability decisions at the room type and rate code level to drive optimal revenue performance a...

Geography: Regional
Geography: Global Verified Customer Support: Yes No
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2022 Finalist HotelTechAwards
Hoteliers voted IDeaS as the #2 Revenue Management Systems provider in the 2022 HotelTechAwards
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2022 Finalist HotelTechAwards
Hoteliers voted Atomize as the #3 Revenue Management Systems provider in the 2022 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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2022 Finalist HotelTechAwards
Hoteliers voted Atomize as the #3 Revenue Management Systems provider in the 2022 HotelTechAwards
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2022 Finalist HotelTechAwards
Hoteliers voted RoomPriceGenie as the #3 Revenue Management Systems provider in the 2022 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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2022 Finalist HotelTechAwards
Hoteliers voted RoomPriceGenie as the #3 Revenue Management Systems provider in the 2022 HotelTechAwards
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2022 Finalist HotelTechAwards
Hoteliers voted Pace Revenue as the #3 Revenue Management Systems provider in the 2022 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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2022 Finalist HotelTechAwards
Hoteliers voted Pace Revenue as the #3 Revenue Management Systems provider in the 2022 HotelTechAwards
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2022 Finalist HotelTechAwards
Hoteliers voted SiteMinder as the #3 Revenue Management Systems provider in the 2022 HotelTechAwards
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SiteMinder Insights (Pace)

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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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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2022 Finalist HotelTechAwards
Hoteliers voted SiteMinder as the #3 Revenue Management Systems provider in the 2022 HotelTechAwards
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2022 Finalist HotelTechAwards
Hoteliers voted BEONPRICE as the #3 Revenue Management Systems provider in the 2022 HotelTechAwards
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BEONPRICE

HotelTech Logo score
HT SCORE
86 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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2022 Finalist HotelTechAwards
Hoteliers voted BEONPRICE as the #3 Revenue Management Systems provider in the 2022 HotelTechAwards
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2022 Finalist HotelTechAwards
Hoteliers voted RateBoard GmbH as the #3 Revenue Management Systems provider in the 2022 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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2022 Finalist HotelTechAwards
Hoteliers voted RateBoard GmbH as the #3 Revenue Management Systems provider in the 2022 HotelTechAwards
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2022 Finalist HotelTechAwards
Hoteliers voted D-Edge as the #3 Revenue Management Systems provider in the 2022 HotelTechAwards
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D-EDGE - NextRate

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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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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2022 Finalist HotelTechAwards
Hoteliers voted D-Edge as the #3 Revenue Management Systems provider in the 2022 HotelTechAwards
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2022 Finalist HotelTechAwards
Hoteliers voted RevControl as the #3 Revenue Management Systems provider in the 2022 HotelTechAwards
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RevControl

HotelTech Logo score
HT SCORE
79 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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2022 Finalist HotelTechAwards
Hoteliers voted RevControl as the #3 Revenue Management Systems provider in the 2022 HotelTechAwards
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Recent Revenue Management Systems Articles

How Hotel Tech Can Help with Labor Shortages

by
Sarah Duguay
1 month ago

As travel opens up, so comes a surge of travel. Pent-up desire for holidays has resulted in what some are calling ‘revenge travel.’ After some hesitation, hoteliers are reporting more demand than ever since the beginning of the pandemic. This has resulted in a challenging scenario. Before COVID-19, the hospitality industry was no stranger to employee retention and acquisition issues. But suddenly, faced with low bookings, many hotels had to make the difficult decision to lay off staff. Fast forward to today, some hotels have been forced to turn away guests because of even greater staff shortages than before. While theories abound about shortages, accompanied by HR strategies to attract new hotel employees, we’re here to remind you to take a deep breath because hotel tech is here to help! Tried and true, existing hotel tech can help your hotel with labor shortages by making operations more efficient and less time-consuming while improving the guest experience.   PMS Features and Integrations Alleviate Hotel Labor Shortages According to Revinate, 95% of hoteliers are facing a staff shortage while occupancy is experiencing record highs. One hotel in their report said their shortage has them operating with only 70-75% of their staffing levels. This is the norm, not the outlier, in today’s market. But, as many independent hotels learned during the pandemic, those with a cloud-based property management system (PMS) already have a leg-up on their ability to streamline operations and maximize staff. Because, as the name implies, cloud-based PMS exist in the ‘cloud’ (they run online), operators can manage their hotels from anywhere at any time. Hotel managers no longer need to drop everything and dash back to the hotel to deal with accounting issues or make rate changes. Front-desk duties, such as group management and availability calendars, or back-office tasks, like rate management and financials, are all at your fingertips, wherever you are.   Automation. Nothing streamlines operations like automated systems! At the heart of operations, the PMS automatically coordinates reservations, inventory and availability, housekeeping, and reporting, centralizing data to streamline front- and back-office tasks. For example, instead of manually sending routine emails to guests, set up and send templated emails from your PMS automatically based on defined triggers for booking confirmation, pre-arrival, check-in and post-stay communications, waitlists, group bookings, rental agreements, and more.  A cloud PMS is easily integrated with your other hotel systems — including payment gateways, OTAs, point-of-sale systems, locking systems, CRMs, and revenue management software, etc. — to automatically share relevant reservation data with those systems so that staff don’t have to manually re-enter information into multiple systems. System integration with your PMS at the core is an important part of automating processes and maximizing efficiency.   Self Check-in: Let guests jump the queue with online registration and self check-ins — saving you time and resources in the process. Typically, hotel guest check-ins — with forms to sign and policies to review — take around five minutes per guest and often result in queues, occupying your front desk staff and frustrating guests. By moving this process online, all agreements, waivers, screening, and guest information collection is completed online by your guests in advance of arriving at the hotel, improving the guest experience by not having to wait in a physical queue, while simultaneously saving staff a lot of time! With automated email or SMS communications, payment gateway and mobile key integration, the entire check-in process can be automated.   Rate Management: Flexible rate management tools make monitoring and adjusting pricing a cinch, from creating group discounts and package rates to instant overrides. Yield management functionality allows you to automatically adjust prices based on predetermined occupancy rules — talk about a time saver! If you haven’t already added a commission-free online booking engine (OBE) to your property’s website, this is your first order of business. Integrated with the PMS, reservations made by guests using the OBE are automatically updated in the PMS, and live rates and availability are always displayed online. Not only will you save valuable employee time from taking reservations by phone and email but today’s guests expect (and many even prefer) to book online. While OTAs are a great way for guests to find you and book online, why not offer your own online bookings and save on commissions? Speaking of OTAs, you’ll also save time by integrating your OTA channels or channel manager with your PMS to synchronize live inventory, rates and availability across channels, instead of managing each separately. Plus, all reservations coming through your channel partners are automatically updated in your PMS so no matter where guests book, they always have access to up-to-date availability. Integrating your PMS with your online distribution channels is a must for maximizing time and preventing overbooking.    Housekeeping reports: While a PMS cannot perform housekeeping duties, it can make housekeeping processes more efficient, which is essential with a lean staff. With a mobile housekeeping report, staff can check their housekeeping schedule using their own mobile phones, to see which rooms are vacated and ready to be cleaned and to mark rooms as clean as they go, adding housekeeping notes and maintenance alarms as required. The front desk is kept in the loop in real time with the same system. Furthermore, checklists for each room keep staff on track to ensure nothing is overlooked — because as you know, when it comes to cleanliness, guest standards are higher than ever before due to the pandemic.   Mobile keys: Keyless entry is an elegant accompaniment to online registrations and check-ins. While it may seem small, keyless entry technology removes the headache of keys altogether, whether it’s actual keys or cards. No more sanitizing, organizing, re-setting, or distributing. With keyless entry system integration with your PMS, guests can simply unlock their room door with their mobile device. Along with online check-ins, keyless entry integration allows guests to bypass the front desk altogether! Imagine no guest lineups at the designated check-in time and no key drop-offs at check-out. Did we just hear a sigh of relief?   Save time, resources, and money by employing smart room technologies. Allowing guests to adjust room temperature and lighting with their phones puts comfort into the palm of their hands. Better still, IoT offers the ultimate in personalization with room light levels that adjust with the time of day, and keeps the room temperature at exactly the right level — automatically. This kind of efficiency decreases demand on housekeeping and maintenance teams and helps with your sustainability initiatives.    Chatbots: Hotel Chatbots are an excellent way to assist your online guests 24/7 without any extra effort from staff. Integrated with your hotel's website and/or within your guest messaging app, an AI or rules-based chatbot can assist guests with booking, requests, FAQs, upsells, and local recommendations. Younger generations are the most comfortable seeking help from chatbots, with many guests preferring to search for answers this way than connecting with a real human — which frees up your human employees for in-person help.   Robot room service: A couple of years ago, robot room service was exclusively seen as a novelty service to delight guests. But in the age of COVID-19, it’s obvious to see the practical utility of employing robots by reducing human contact (and thus germs) and by reducing the need for bellhops. Because labor shortage is a trend that existed even before the pandemic hit, perhaps investing in robot room service is no longer pie in the sky. Isn’t technology an amazing thing? Instead of providing a lack of care or impersonal service (a common fear about using technology), today’s hotel tech provides hoteliers with a way to upgrade the guest experience even in the face of decreased staffing. If your property does not have one already, a robust and innovative cloud PMS like WebRezPro can set you on the path toward hospitality excellence and higher revenue, not to mention less stress.  

The Five Boxes Your New RMS Should Check

by
Alexandra Fjällman
3 months 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
6 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.

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Recent Revenue Management Systems News & Community Updates

Unique Vacations, Inc., an Affiliate of the Worldwide Representative for Sandals Resorts, Partners with IDeaS

IDeaS
5 days ago

IDeaS, a SAS company, the world’s leading provider of hospitality revenue management software and services, announced today it has partnered with Unique Vacations Inc., (UVI) to bring the power of automated revenue science to Sandals Resorts and Beaches Resorts properties throughout the Caribbean. Celebrating its 40th anniversary, Sandals Resorts will usher in new resort openings in 2022, including a reimagined Sandals Royal Bahamian, in Nassau, Bahamas on January 27, followed by Sandals Royal Curacao on April 14 and Sandals Dunn’s River in Ocho Rios, Jamaica in December.  After re-evaluating its incumbent and other RMS providers, UVI determined IDeaS offered the most robust revenue suite of solutions and innovative roadmap to match its vision for transformational growth and connected commercial success. ·  Automated decision empowerment – UVI will switch revenue management system (RMS) providers to go from rules-based recommendations to the enhanced efficiency and profitability of automated decisions with IDeaS G3 RMS. · Change-management support – UVI will engage with IDeaS Consulting, featuring a world-class team of industry experts, to ensure organization-wide adoption, build user confidence and instill an aligned culture of total revenue performance and profitability. · Scalable commercial growth – IDeaS G3 RMS is a vital component of the modern hospitality technology ecosystem with data integrations to connect entire commercial organizations. UVI appreciated G3 RMS’s versatility, adaptability and ease of use, making it a sound long-term investment with immediate ROI potential. William Tullmann, vice president of operations and revenue strategy, UVI, said: “Our company has reached an exciting inflection point where our quest for continued innovation will align with cutting-edge automation. These efficiencies will result in an enhanced booking experience for resort customers, and the IDeaS team will play a critical role in this transformation for a more connected commercial future.” Ravi Mehrotra, president, founder and chief scientist, IDeaS, said: “Team IDeaS is thrilled to partner with UVI. As industry leaders with decades of innovation, this relationship signals a new era in the move toward a connected hospitality technology ecosystem. With this bold decision to transform their technology infrastructure, IDeaS is proud to empower this team with advanced solutions, expert guidance and automated decisions they can trust, so they can continue to focus on curating unforgettable experiences.”  

IDeaS Unveils Reimagined Consulting Services to Power the Modern Hospitality and Travel Organization

IDeaS
1 month ago

IDeaS, a SAS company, the world’s leading provider of revenue management software and services, has mobilized its global team of technology experts, change agents, and profit drivers with a renewed focus on sharing deep experience and knowledge to ready hospitality and parking clients for organizational transformation and to maximize revenue and commercial potential. The new-and-enhanced IDeaS Consulting offerings leverage the seasoned team’s global reach to provide: · Strategic Product Consulting – Drives optimal technology usage and guides the adoption and integration of IDeaS’ solutions into business strategies to enhance performance outcomes and return on investment. · Organizational and Transformational Consulting – Bolsters organizational change readiness and revenue capabilities through change management, organizational culture, and commercial strategic consultation. · Commercial Performance Center – Outsources revenue, distribution, and marketing support with commercial services that look beyond revenue management alone to drive commercial success. Scott Eitelberg, chief operating officer, Settlers Hospitality, said: “It’s been a seamless, easy process working with the IDeaS team. Our industry consultant has worked with us pre-and post-implementation to help us recognize and break some habits, better utilize our new technology and drive a cultural shift in how we approach our revenue optimization strategies.” Digna Kolar, director, IDeaS Consulting, said: “You may be ready for change, but is your organization? With IDeaS Consulting, our world-class dream team has evolved to better meet the needs of our clients in a fast-changing world. Leading hotels have embraced the virtues of automation and data-driven decision-making like never before, but it takes more than implementing the best software to make it happen. Commercial transformation is truly possible when hospitality businesses have formally aligned their people, processes, and technology. Our mission is to help our clients prepare for that transformation, adapt to new environments, and unlock new opportunities for growth.”

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

IDeaS
1 month 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/  

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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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