Considering adopting a revenue management system (RMS) for your hotel business? First, you must identify what you most want to achieve from your new technology. Are you investing in an RMS to drive more revenue? Or are you hoping to forecast more accurately? Are operational efficiencies a key driver for you? Ideally, you should be looking for a system that will offer all three.
Let’s look at each and see how your next RMS should be performing:
Drive more revenue
An RMS 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 RMS will detect changes in demand and potential guests' sensitivity to price and build a more accurate demand forecast based on actual activity in the market. This can also have operational benefits, as teams can schedule staff and maintenance more efficiently. This in turn impacts bottom line profitability.
Create operational efficiencies
Automating your revenue management with an RMS means hoteliers no longer have to build spreadsheets and reports, calculate the demand manually every day, and then enter those numbers into a spreadsheet and reporting system. This frees revenue professionals up for more strategic thinking around positioning their hotel in the market.
How an RMS Adds Value
Whether you have a fully staffed revenue team including analysts and revenue managers or are an owner/operator hotel whereby the general manager also doubles as the revenue manager, adopting an RMS can add value to your hotel business.
Set & optimize prices. Hotels that switch onto a revenue management system generally experience a RevPAR increase of 5% - 20% due to optimized automatic price setting per room type.
Streamline & automate manual workflows. 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 cumbersome spreadsheets.
Leverage large data sets to enable complex decision-making. Whether it’s 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 this data under one roof and deliver it in a simple way that helps revenue managers make more informed & data-driven decisions.
What’s more, if you opt for a software-as-a-service (SaaS) model, such as Duetto, you can benefit from a subscription-based pricing model, which helps you spread the cost. See our blog, Why Not Implementing Technology Also Comes At A Cost, for more on this.
Naturally, we think Duetto is the best RMS on the market. But don’t take our word for it. We were voted the #1 revenue management system (RMS) in the 2022 HotelTechAwards, a user-based awards system that rewards based on customer feedback, integration compatibility, organizational health, partner network strength, and customer support quality.
Find out more about selecting your next RMS in HotelTechReport’s The Ultimate Guide to Revenue Management Systems. Download for free today.
Duetto delivers a suite of SaaS cloud applications for hospitality businesses to optimize every booking opportunity for the greatest overall revenue impact. The solution dramatically increases organizational efficiency, revenue, and profitability by simplifying hospitality revenue decisions and allowing properties to work smarter. The unique combination of hospitality experience and technology leadership drives Duetto to look for innovative solutions to industry challenges. The software as a service platform allows hotels, casinos and resorts to leverage real-time dynamic data sources and actionable insights into pricing and demand across the enterprise. More than 4,000 hotel and casino resort properties in more than 60 countries have partnered to use Duetto's applications, which include GameChanger for pricing, ScoreBoard for intelligent reporting, and BlockBuster for contracted-business optimization. Duetto is backed by investors Warburg Pincus, Icon Ventures, Accel Partners, Battery Ventures, and Spectrum 28.
In January 2022, Duetto was named the world's #1 revenue management system in the HotelTechAwards out of 52 RMS products reviewed and extensive end-user reviews. The Awards rank and evaluate more than 200 of the top hotel technology products worldwide to deliver the ultimate list of best-in-class software products, based on customer feedback from more than 10,000 customer reviews, integration compatibility, organizational health, partner network strength, and customer support quality.
For more information, please visit https://www.duettocloud.com/.
Sarah McCay Tams
Director of Content, EMEA