Revenue management involves the use of analytics, with the use of optimized pricing to generate revenue of a hotel in order to increase profit.
This helps predict demands and consumer behaviour at the micro-market level. An increase in the revenue ensures effectiveness of the company’s sales and marketing.
In order to maximize profit, we use certain revenue management tools especially in the hotel and airline industry to improve work efficiency and make benefits out of it.
So how does it help your company?
With the use of these tools, the companies can evaluate the right value of sales, fare, goods, marginal costs etc. and hence create revenue opportunities.
Below you can find the ways in which revenue management tools can benefit your company-
Reduces manual work
With the advancement in technology and easy implementation of software’s like artificial intelligence, the reliance on human work has come to an ease.
Using such tools that are automated helps reduce manual work amongst the revenue managers, in turn it helps predict the optimized price for your hotel without having to update the price manually.
Easily aligns with the property management system
Most of the revenue management tools available in the market, allow easy integration of the software with the property management system.
The main task of these tools revolves around working on the data work. With the use of these revenue management tools this data can be sourced directly from your property management system, without performing any manual work.
Better data analysis and price optimization
RMS ensures data gathering like hotel rooms, rates, update pricing, changing the existing information when a new reservation is made etc.
This also helps in better data analyzation and get an accurate pricing for your hotel, without having to perform any manual work. Although depending on the mode of the software you are using these prices can be changed manually or in accordance with your needs.
Ensures feasibility of time
Without having to depend on manual work to generate revenue and maximize profit, you can rely on these revenue management software’s and save time.
Since there is a lot of data to store and analyze, it takes a lot of time for managers to work upon the data manually, updating to these software’s ensure feasibility of time and cut down amount of work load on humans.
Helps predict market demand
Predicting the consumer demand in the market is what you call hotel demand forecasting, using these RMS tools can help you with forecasting market demands in terms of operation, finance and revenue.
With these tools you can earn profit for your hotel and set effective room rates, it helps you maximize revenue by predicting consumer demands rises and falls. Forecasting market and consumer demand is an important aspect in generating revenue, as falling in line with recent market trends ensure profit of a company.
Provides recommendation of rates
Equipped with technologies like artificial intelligence revenue management tools, helps manage current market data with the help of algorithms to get an accurate rate recommendation for your hotel.
This also benefits in reducing human work as the software is already fed with data of past and is in touch with the current market trends, hence it minimizes human effort by providing the ideal rate recommendations.
Gives revenue estimation
Revenue management tools apart saving time, cost, and human work, also helps calculate profit of your company, based on the pricing strategy.
Feeding the software with data and information, it can help you generate the profit you are likely to make through your business and in turn help you explore different strategies and estimate profitable margin of your company.
Fits your pocket
Subscribing to automated revenue management software’s will help you go lighter on your wallet, as it is much affordable as compared to recruiting a revenue manager for your company.
You can explore different variety of software’s available in the market before choosing the ideal one for you. You can also get a software trial done before directly selecting a tool, this will help you explore different availability of options and find the best one for you that suits your needs and fits your pocket.
Provides assistance in market segmentation
Market segmentation refers to grouping together people with common needs and narrowing them down to accomplish the needs and wants.
A market in terms of segmentation can help hotels tailor personalized marketing campaigns and more by attracting more guests with the same desires.
RMS ensures profit in this aspect as it collects the guest data, which can further be used to segment and create guest personas, which in turn will help the hotel earn profit.
Helps in comp set analysis
A comp set analysis helps you in evaluating your competing hotels based on relevant, specific selection criteria in accordance with your company.
A revenue management tool can help you out here, with the help of these tools you can analyze your competitors.
It can also assist you evaluate their services and products, and what makes them your competitor. Furthermore, with the help of these revenue management tools you can strategize your business growth.
Revenue management tools are an important part of company management to ensure revenue and maximize profit. Choosing tools that ensure transparency and aligns with recent market trend will make your company a step ahead of your competitors.
However, you should ensure that the software you’re using allows flexibility of updates as manual work is an important aspect of revenue management process. Updating the pricing or making any changes when needed should be flexible in the tool you are using in order to avoid any inefficiencies and make changes accordingly.
In addition, a good revenue management system will help you analyze internal data, market supply and consumer demand efficiently and tailor the pricing and inventory.
Managing a good revenue system in the company will allow your hotel adapt a better data-driven approach and get ideal price recommendations for the rooms hence, boosting company performance and revenue.