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

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

10 Best Revenue Management Systems

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2021 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 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
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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Atomize is an innovative, ambitious, and fast-growing Revenue Management Software (RMS) provider for hotels. Our core focus lies in increasing revenues, lowering costs to drive pr...

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

HotelTech Logo score
HT SCORE
94 out of 100
Hotel Tech Score is a composite ranking comprising of key signals such as: user satisfaction, review quantity, review recency, and vendor submitted information to help buyers better understand their products.
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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
92 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
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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Beonprice is bringing the value of revenue management technology to a new level. While data-drivenly optimizing your RevPAR, the Hotel Quality Index (HQI™) is the nuance that co...

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

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

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

HotelTech Logo score
HT SCORE
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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Spider 2.0 by Kriya RevGEN is an innovative hotel revenue management platform providing brand-neutral RM analytics, forecasting, pricing and more for everyone from large managemen...

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

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

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

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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Infor EzRMS is powerful revenue management software with capabilities to manage all aspects of hotel business, from walk-in to long stay. EzRMS automatically calculates demand for...

Geography: Regional
Geography: Global Verified Customer Support: Yes No
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2021 Finalist HotelTechAwards
Hoteliers voted Infor 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 week 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
3 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
7 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

Radisson Hotel Group Implements IDeaS RevPlan across EMEA for Automated Forecasting Precision

IDeaS
1 week ago

IDeaS, a SAS company, the world’s leading provider of hotel revenue management software and services, announced today that Radisson Hotel Group has implemented IDeaS RevPlan™ across 147 hotels of its EMEA-region portfolio, and counting. Released by IDeaS in 2020, RevPlan is a standalone, cloud-based solution built to complement its flagship RMS products. RevPlan takes the pain out of budgeting and forecasting a hotel’s total business, including food and beverage outlets. ·  Automated efficiency – IDeaS RevPlan enables Radisson Hotel Group’s revenue managers to save approximately one day per week in time previously spent on manual, spreadsheet-based forecasting. This time savings has translated into more resources focused on profitable recovery strategies. · Informed planning – RevPlan gives Radisson Hotel Group’s leaders the ability to make smart, long-term business decisions by understanding the projected financial impact of proposed changes to strategy and tactics. · A single source of truth – RevPlan provides forecast clarity and ease of use to Radisson Hotel Group’s entire organisation, including revenue managers and general managers as well as corporate executives and finance leaders.  Gianni Di Fede, senior VP revenue management, BI and distribution, EMEA, Radisson Hotel Group, said: “RevPlan empowers revenue managers to be the guardians of total revenue optimisation, applying data-driven, dynamic forecasting to all revenue streams, including rooms, food and beverage and meetings and events. RevPlan has freed up almost one day a week of our revenue managers’ time. What we previously did on a daily basis, segment by segment, we now only have to focus on the exceptions and calibrate as necessary. This gives us more time for strategy, and more time for strategy means more profitability.” Matthieu Lafaurie, head of The Club (revenue management for hire) and revenue projects, Radisson Hotel Group, said: “Automated technology is the key to gaining valuable time in our operations and making life easier. RevPlan allows us to be nimbler than we ever could be working manually out of spreadsheets, and the tool integrates very well with IDeaS G3 RMS.”  Sanjay Nagalia, chief operating officer and chief technology officer, IDeaS, said: “IDeaS’ lasting partnership with the Radisson Hotel Group is built on a shared vision for making total revenue management, forecasting and budgeting possible. With RevPlan, we bring Radisson Hotel Group closer to achieving this vision than ever before by delivering advanced forecasting with cutting-edge automation at the click of a mouse.”   About Radisson Hotel Group Radisson Hotel Group is one of the world's largest hotel groups with nine distinctive hotel brands, and more than 1,500 hotels in operation and under development in 120 countries. The Group’s overarching brand promise is Every Moment Matters with a signature Yes I Can! service ethos. The Radisson Hotel Group portfolio includes Radisson Collection, Radisson Blu, Radisson, Radisson RED, Radisson Individuals, Park Plaza, Park Inn by Radisson, Country Inn & Suites by Radisson, and prizeotel brought together under one commercial umbrella brand Radisson Hotels.

‘Information is Beautiful’ Author to Headline RSF London

Duetto
4 weeks ago

David McCandless, bestselling author of ‘Information is Beautiful’ and ‘Knowledge is Beautiful,’ will deliver this year’s opening keynote at Revenue Strategy Forum (RSF) London on November 1.  Access to relevant and up-to-date market data and customer information has never been more crucial to the hotel industry than now. The Ted Global speaker will talk about the importance (and beauty) of data, and how hoteliers can and should analyze it to find the true story beneath the figures. “It’s an honor to be opening this year’s edition of RSF London. Access and analysis of up-to-date data have never been more important to the hospitality industry than right now, and I hope to highlight how vital and informative this can be while having a little fun along the way!” said David McCandless.   Titled, ‘Strategy Before Forecast: Open Up Your Revenue’, this year’s RSF London event will also include participation from senior leaders from Accenture, Oracle, and EY, as well as industry input from global hotel brands. The half-day conference will include an Industry Perspective session entitled ‘On Your Marks, Get Set, Go! Fuel for The Hospitality Commercial Race’ with Jonathan Fuentes, Hospitality Technology Strategy Manager, Accenture. Karen Hutchings, Global Head of Travel Meetings & Events, Ernst & Young, will take part in a fireside chat with Chris Crowley, SVP Global Sales, Duetto, on the future of group and business travel. Additional speakers are yet to be announced, but the event line-up is already promising to deliver a day of education and best practice sharing. Attended by hotel industry leaders, revenue strategists, and asset managers, the event will provide an opportunity for open discussion on industry-relevant topics and consumer trends.  “We’re excited to return to London for our Revenue Strategy Forum and look forward to welcoming the hospitality industry to the Ham Yard Hotel for what promises to be a great afternoon of insight, networking, and learning,” said Chris Crowley, SVP of Global Sales, Duetto. “Our objective is to help hoteliers better strategize for the months and year ahead, and our fabulous line-up of speakers will deliver educational and engaging content to help the industry do just that.” Organized by Duetto, RSF London will take place ahead of World Travel Market on Monday, November 1, 2021. The hybrid revenue management conference will take place in person at the Ham Yard Hotel, Covent Garden, and will simultaneously broadcast online. Secure your seat or register for the online event.

IDeaS Introduces Profit Optimization for G3 RMS, Enabling Holistic Guest Value Maximization

IDeaS
3 weeks ago

HITEC Booth #3401 (Kay Bailey Hutchison Convention Center Dallas)—IDeaS Revenue Solutions, the world’s leading provider of automated revenue management software and services, announced today Profit Optimization for G3 Revenue Management System (RMS). Profit Optimization is an enhancement to the G3 RMS revenue science engine that enables it to capture the most valuable business while considering the total contribution for each guest. This allows hoteliers to evaluate total revenues, profit margins for each revenue stream and the costs associated with acquiring and servicing guest stays in real time, while determining highly sought metrics such as profit per available room (ProPAR).  · Gain a holistic view of profit – IDeaS’ innovative, flexible profit optimization engine uses any combination of ancillary revenues, margins, costs to acquire, and servicing costs to provide adjusted decision data. This can result in the property management system or central reservation system yielding the value of reservations to account for profit. · Forecast the most profitable business – Using Profit Optimization in G3 RMS, hoteliers understand the true value of each guest segment and room type. This feature forecasts and enables the most profitable guest bookings, while incorporating data from other sources, such as restaurants, bars, retail, resort activities, casino gaming, and more. · Optimize all guest bookings – G3 RMS uses a unique and proven approach that automatically produces a combination of decisions. Working together, these decisions maximize overall profit rather than prioritizing revenue per available room (RevPAR). Sanjay Nagalia, co-founder, COO, CTO, IDeaS, said: “For too long, profit optimization has remained unattainable for the hospitality industry. While others have talked about it, or offered simple reporting solutions, IDeaS has been working to shift our clients’ mentality from focusing on enhancing room revenue to maximizing the value of the guest going into that room. To make this possible, we’ve innovated a core optimization process that enables hoteliers to book the most profitable business, and today, we are pleased to be the first RMS provider to offer a holistic approach to total profit optimization that automates all key business controls based on prioritizing profit.” Learn more at HITEC and ROC 2021: Meet the IDeaS team and grab a limited-edition IDeaS ProPAR Bar—sweet chocolate, sweeter profits. HITEC attendees are invited to visit booth #3401 at the Dallas convention center. Attendees at the coinciding HSMAI Revenue Optimization Conference can find IDeaS at the Omni Dallas Hotel.

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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.