How Does Revenue Management Software Work?

In this article let's explore the most recent trends in hotel revenue management tech and then dive into how to vet a new revenue management system to boost your hotel business's revenue. 

What is a Revenue Management System?


Revenue management software like Pricepoint helps hotels sell the right product to the right customer at the right price. This software solves variables like price, channel, and timing to maximize profitability.



Boost RevPAR with a New RMS


There are three main benefits of a revenue management system. With a revenue management system hoteliers can determine how much to charge for a room each day, factoring in real-time supply and demand data. Thus it balances occupancy and ADR (average daily rate), and varies the price point depending on the channel and customer segment. 


The Latest Revenue Management Software Innovations


These RMS trends in the hospitality industry refers to real time pricing, open pricing, new personalization and automation developments, and cloud architecture. As revenue management tools get more sophisticated, you get more attribute-based pricing to improve forecast accuracy.


Key RMS Integrations: Channel Manager, Property Management System and more

 

Adding a revenue management system to your technology stack basically results in a straight profit. You don't have to pay additional cost to deliver the service to the guest, and you can optimize your pricing in a way that improves occupancy and revenue. So, it’s important to find an RMS that works well with your current systems.


The RMS can then analyze the data and return an accurate matrix of pricing recommendations for each market segment and room type while providing real time business intelligence. as you sync your central reservation tool with your revenue management platform, this leads to fewer failed updates, lost reservations, or bad reports - ultimately building the foundation for a strong pricing strategy.

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