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10 tips to choose the right Revenue Management Systeem voor uw hotel

As you may or may not know, revenue management involves analysing vast amounts of data to forecast demand, segment customers and determine the optimal price for each room, based on real-time market conditions, among other factors. By leveraging data analytics and market insights, your hotel can automate the process of anticipating market changes, adjusting pricing and inventory across all online channels in real time and maximise occupancy rates, without compromising ADR.

It is impossible to do this effectively using manual processes… that’s where your new RMS will come in to save the day!

An RMS automatically collects and analyses huge amounts of data to provide accurate pricing recommendations in real-time; in addition, when your RMS is integrated with a channel manager, the new prices are automatically updated across all the online distribution channels, making your property’s pricing and inventory management a completely hands-off process.

However, not all RMS are created equal.

Choosing the best RMS for your specific hotel is an important decision that can greatly impact your property’s financial performance and operational efficiency, both in the short- and long-term; to help, we created this 10-step checklist to help you choose the RMS of your dreams.

One final thought before we get started… remember that the goal with this project is not just to adopt new technology but to find an RMS that enhances your decision-making, optimises revenue opportunities and, ultimately, elevates the guest experience. When going through the following 10 steps, take your time to thoroughly evaluate potential systems, engage with vendors and most importantly, involve your team in the selection process to ensure the chosen RMS becomes a cornerstone of your property’s success.

Let’s get started…

Illustration of a Lego Block

Step One:

Consider what type of property you are and what specific pain points that the RMS will be resolving

Big properties with hundreds of rooms and small, BnB properties have very different needs in their revenue management system. While both types of properties need some sort of automated pricing solution, the smaller property wouldn’t necessarily need all the bells and whistles (i.e., extensive reporting functionality, corporate booking functionality, etc.) that the bigger property would need; begin your search by listing the specific pain points that you are experiencing and that you would like the RMS to help solve. This will be your guide when comparing systems in later steps.

Another important consideration is how you anticipate your property to grow and change, both in the short- and long-term. The RMS you chose should be able to grow and adapt with your hotel, no matter whether you expand into different locations, improve your service offerings, adjust your business and revenue goals, renovate your property or cater to new market segments, the system should be able to support your evolving business needs, today, tomorrow and into the future.

Step Two:

Research available options

Once you’ve decided on what your pain points are, the next step is to do a thorough examination of the different types of solutions available to you and create a short-list of the ones that seem to suit your needs and business goals.

Here are a few quick and easy ways to get started on your search for the best RMS for your hotel:

  • Check out different vendor options on HotelTechReport, which gives you in-depth information about different RMS that are available, their ratings and reviews from clients, integration partners, FAQs about their solution, a full list of features and functionality, and additional valuable information that can help you understand the key differences between the different options. It even gives out awards for the Top 10 Best RMS for Hotels every year (HOT TIP: RoomPriceGenie was rated the 2nd best RMS in the 2024!), so this is a good way to get an overview of some of the best solutions available on the market.
  • Google related keywords to see what solutions are available. Compare the results that you find in your Google search to the ratings and information on HotelTechReport to get more context about the different solutions that seem to meet your needs. We suggest using some of the following keywords, as a start:
    • “Revenue management systems”
    • “Automated pricing solution”
    • “RMS”
    • “Revenue management”
Sticky note with the words 'Hot Tip' written on to it, with an animated arrow pointing to the content on the right

There are two main schools of thought on whether you should do demos with RMS vendors at this stage of the process and there is no one-size-fits-all answer. Some advocate to do demos with a larger pool of vendors to get a better understanding of the offerings available on the market, at a higher level, and as a way to create a short-list; however, information overload is a real thing and, by giving yourself too many (competing) options before you’ve done your own independent research, it can create a great deal of uncertainty and “paralysis by analysis” (in other words, you can’t make a choice on how to move forward so you abandon or delay the search).

We recommend a more balanced approach, in which you do a book initial demos with a select few vendors who offer different types of RMS so that you can learn a bit more from each company’s perspective about why their type of solution is “best” for your property; after these demos, we suggest that you continue with your own independent research (by following Steps 3 through 9) and then doing a final demo with your top 2 vendor options to make a final selection (Step 10).

Step Three:

Before starting to investigate each system on your short-list further, ensure that each RMS has an integration with your pre-existing operational systems

One of the first and most important things to consider when choosing an RMS is whether or your PMS and CRS have pre-existing integrations with the RMS on your short-list. There is no point in considering a solution that doesn’t have the integration capability with your current tech stack. Integration is very important because it is essential for enabling the revenue management and inventory management processes to be completely automated, as the integration is necessary to transfer pricing and inventory data in real-time across all the systems. 

Illustration of a hand holding a magnifying glass

Step Four:

Consider how user-friendly each system is to use and how much training and customer support is offered by each vendor

RMS offer very sophisticated technology in the back end but the customer facing dashboards should be very intuitive and easy-to-use. No matter how tech-savvy your team is, they should be able to log into your RMS and find the information that they are looking for, quickly and without hassle.

Of course, there will be times when you have questions or need help to optimise how you use the solution so look for a vendor that offers training/onboarding immediately after implementation, and high-quality customer support options.

Compare each RMS vendor’s customer service support availability and response times support (24/7 support is ideal but may or may not be necessary) and the quality of the technical support that the support team offers. A good way to discover this information is to read reviews from current clients on each vendor’s page on HotelTechReport. Look for indicators of the support team’s responsiveness and the quality of technical assistance. Good customer support is key in getting your issues resolved quickly so you can get back to the business of running your hotel ASAP.

Step Five:

Evaluate data analysis and forecasting capabilities and ensure the solutions offer dynamic pricing

The core of an RMS is its ability to analyse historical data and market trends to forecast demand accurately. Evaluate the system’s track record for accuracy and how it handles data from various sources, including your hotel’s historical data, market trends and competitor pricing – and, importantly, whether the data is collected and analysed in real-time.

The ability to adjust prices in real-time based on fluctuating market demand (also known as dynamic pricing) is essential. Assess the RMS’s capabilities for dynamic pricing, including setting pricing rules, incorporating competitive pricing data and applying different pricing strategies for various customer segments and distribution channels.

HOT TIP: Today, “real-time: has become a marketing buzzword in the hospitality technology industry so don’t just take a company’s website at face value when they say that they update prices in real-time; ask them specific, quantifiable questions about what “real-time” is for their system. Be it collecting and analysing data every 8 mins or once every hour, if data is not collected and applied to your pricing in actual real-time, it means that you could miss out on valuable revenue opportunities and be leaving money on the table.

Step Six:

Compare the RMS’ reporting functionality

Illustration of a flip-pad with bar and pie charts

Comprehensive reporting and insightful analytics tools, which are easy to access or share interdepartmentally, are critical for informed decision-making, as best ROI is achieved when the revenue management, marketing, sales and commercial leadership teams work together to make data-based strategic pricing decisions.

Look for RMS that offer (at a bare minimum) the following reports, as these are very useful for all your commercial teams in achieving your revenue and business targets:

Occupancy and RevPAR Report
Provides insights into the hotel’s occupancy rates and RevPAR, to understand demand patterns and set more accurate room rates.

Forecast Accuracy Report
Compares the forecasted demand and revenue against actual outcomes, which is crucial for evaluating the RMS’s predictive accuracy and making adjustments to improve future forecasts.

Segmentation Report
Shows revenue earned from different market segments (e.g., leisure, corporate, group) and helps to improve targeting when developing marketing strategies and optimising distribution channels.

Pick-Up Report
Shows the rate at which rooms are being booked for future dates, providing insights into upcoming demand trends. This is useful in adjusting pricing and promotional strategies to capture as much of the demand as possible, in advance.

Rate Shopping Report
This report compares the hotel’s rates with those of competitors. This information is essential for ensuring that your property is offering competitive pricing and understanding your actual position within the market.

Length of Stay (LOS) Report
Analyses the average length of stay and its impact on revenue, which is useful for creating pricing strategies that encourage longer stays or fill gaps in occupancy.

 

Channel Performance Report
Analyses revenue generated from different booking channels (e.g., direct, OTA, GDS, etc.), enabling the optimization of inventory management strategies by finding an appropriate balance between occupancy and cost of acquisition.

Group Business Report
Details the revenue and booking pace for groups, aiding in managing group rates and availability more effectively.

Budget Performance Report
Compares actual performance against budgeted targets, providing insights into where adjustments may be needed to optimise occupancy and overall revenue.

Displacement Analysis Report
Helps in understanding the impact of accepting a piece of group business on transient bookings, ensuring that the most profitable business mix is achieved.

Illustration of a lightbulb

Step Seven:

Establish the total cost of the system and the anticipated ROI

Illustration in the style of a calendar showing the price change using automated pricing

While the monthly or annual cost of the RMS is important, you can’t base your decision upon that number alone; many vendors charge additional fees, such as initial setup fees, update or support fees and/or integration fees. Weigh the total cost of the RMS against the expected ROI – which comes from increased revenue, improved operational efficiency and enhanced guest satisfaction – and prioritise the system that will give you the best ROI on your spend.

Step Eight:

Ensure the RMS offers optimal privacy compliance and data security measures

The RMS that you choose must comply with industry standards for data security and privacy, such as compliance with GDPR or other regional privacy laws. The protection of your data and your guests’ private information must always be a top priority across your entire tech stack and, of course, that includes your new RMS.

Illustration of a Genie with their arms crossed protecting a webpage

Step Nine:

When you’ve narrowed down your search, evaluate the vendor’s reputation and customer references

When you’ve narrowed down your list to the final 1-3 RMS vendor options, it’s important to do your due diligence on each vendor’s reputation and obtain references from and past/current clients. Look on the vendor’s website for case studies and customer testimonials, but it is important to also read independent reviews (on HotelTechReport and other hospitality industry sites) to understand the actual experiences of other hotels who have used the RMS in the past. As much as possible, look for reviews and references from hotels with comparable pain points that you are experiencing and which are a similar size and type to your property, to better understand how you are likely to experience using the RMS.

Step Ten:

Book demos with the final two RMS vendor candidates on your list so that you can directly compare their offerings and ask very specific, targeted questions about how their solution will address your property’s specific pain points

By this point, you have collected and examined a great deal of information about both of your final options so rather than letting the salesperson go through their standard demo presentation, we suggest you compile a list of questions for the salesperson about your specific pain points/needs and short- and long-term business/revenue goals and go through these questions, one-by-one, during the demo. Also ask each salesperson to compare their RMS to the other vendor’s RMS on each answer so that you can discover each company’s perspective/take to see which one better resonates with you and your specific needs and goals.

Once you’ve completed demos with both of your final RMS vendor candidates, it’s time for you to make your decision, and sign on the dotted line!

I know this can be a long and painstaking process, but by the end of this ten-step process, I know that you will have found the BEST revenue management system for your property, which will be critical in maximizing your future financial performance. Your new RMS will enable you to make better, data-based decisions and establish more effective pricing strategies – resulting in more heads in your beds, at the best possible price and, as a result, driving more revenue, no matter how the market changes.

kamerprijsgenie wit logo

10 tips to choose the right Revenue Management Systeem voor uw hotel

As you may or may not know, revenue management involves analysing vast amounts of data to forecast demand, segment customers and determine the optimal price for each room, based on real-time market conditions, among other factors. By leveraging data analytics and market insights, your hotel can automate the process of anticipating market changes, adjusting pricing and inventory across all online channels in real time and maximise occupancy rates, without compromising ADR.

It is impossible to do this effectively using manual processes… that’s where your new RMS will come in to save the day!

An RMS automatically collects and analyses huge amounts of data to provide accurate pricing recommendations in real-time; in addition, when your RMS is integrated with a channel manager, the new prices are automatically updated across all the online distribution channels, making your property’s pricing and inventory management a completely hands-off process.

However, not all RMS are created equal.

Choosing the best RMS for your specific hotel is an important decision that can greatly impact your property’s financial performance and operational efficiency, both in the short- and long-term; to help, we created this 10-step checklist to help you choose the RMS of your dreams.

One final thought before we get started… remember that the goal with this project is not just to adopt new technology but to find an RMS that enhances your decision-making, optimises revenue opportunities and, ultimately, elevates the guest experience. When going through the following 10 steps, take your time to thoroughly evaluate potential systems, engage with vendors and most importantly, involve your team in the selection process to ensure the chosen RMS becomes a cornerstone of your property’s success.

Let’s get started…

Step One:

Consider what type of property you are and what specific pain points that the RMS will be resolving

Big properties with hundreds of rooms and small, BnB properties have very different needs in their revenue management system. While both types of properties need some sort of automated pricing solution, the smaller property wouldn’t necessarily need all the bells and whistles (i.e., extensive reporting functionality, corporate booking functionality, etc.) that the bigger property would need; begin your search by listing the specific pain points that you are experiencing and that you would like the RMS to help solve. This will be your guide when comparing systems in later steps.

Another important consideration is how you anticipate your property to grow and change, both in the short- and long-term. The RMS you chose should be able to grow and adapt with your hotel, no matter whether you expand into different locations, improve your service offerings, adjust your business and revenue goals, renovate your property or cater to new market segments, the system should be able to support your evolving business needs, today, tomorrow and into the future.

Step Two:

Research available options

Once you’ve decided on what your pain points are, the next step is to do a thorough examination of the different types of solutions available to you and create a short-list of the ones that seem to suit your needs and business goals.

Here are a few quick and easy ways to get started on your search for the best RMS for your hotel:

  • Check out different vendor options on HotelTechReport, which gives you in-depth information about different RMS that are available, their ratings and reviews from clients, integration partners, FAQs about their solution, a full list of features and functionality, and additional valuable information that can help you understand the key differences between the different options. It even gives out awards for the Top 10 Best RMS for Hotels every year (HOT TIP: RoomPriceGenie was rated the 2nd best RMS in the 2024!), so this is a good way to get an overview of some of the best solutions available on the market.
  • Google related keywords to see what solutions are available. Compare the results that you find in your Google search to the ratings and information on HotelTechReport to get more context about the different solutions that seem to meet your needs. We suggest using some of the following keywords, as a start:
    • “Revenue management systems”
    • “Automated pricing solution”
    • “RMS”
    • “Revenue management”

There are two main schools of thought on whether you should do demos with RMS vendors at this stage of the process and there is no one-size-fits-all answer. Some advocate to do demos with a larger pool of vendors to get a better understanding of the offerings available on the market, at a higher level, and as a way to create a short-list; however, information overload is a real thing and, by giving yourself too many (competing) options before you’ve done your own independent research, it can create a great deal of uncertainty and “paralysis by analysis” (in other words, you can’t make a choice on how to move forward so you abandon or delay the search).

We recommend a more balanced approach, in which you do a book initial demos with a select few vendors who offer different types of RMS so that you can learn a bit more from each company’s perspective about why their type of solution is “best” for your property; after these demos, we suggest that you continue with your own independent research (by following Steps 3 through 9) and then doing a final demo with your top 2 vendor options to make a final selection (Step 10).

Step Three:

Before starting to investigate each system on your short-list further, ensure that each RMS has an integration with your pre-existing operational systems

One of the first and most important things to consider when choosing an RMS is whether or your PMS and CRS have pre-existing integrations with the RMS on your short-list. There is no point in considering a solution that doesn’t have the integration capability with your current tech stack. Integration is very important because it is essential for enabling the revenue management and inventory management processes to be completely automated, as the integration is necessary to transfer pricing and inventory data in real-time across all the systems. 

Illustration of a hand holding a magnifying glass

Step Four:

Consider how user-friendly each system is to use and how much training and customer support is offered by each vendor

RMS offer very sophisticated technology in the back end but the customer facing dashboards should be very intuitive and easy-to-use. No matter how tech-savvy your team is, they should be able to log into your RMS and find the information that they are looking for, quickly and without hassle.

Of course, there will be times when you have questions or need help to optimise how you use the solution so look for a vendor that offers training/onboarding immediately after implementation, and high-quality customer support options.

Compare each RMS vendor’s customer service support availability and response times support (24/7 support is ideal but may or may not be necessary) and the quality of the technical support that the support team offers. A good way to discover this information is to read reviews from current clients on each vendor’s page on HotelTechReport. Look for indicators of the support team’s responsiveness and the quality of technical assistance. Good customer support is key in getting your issues resolved quickly so you can get back to the business of running your hotel ASAP.

Step Five:

Evaluate data analysis and forecasting capabilities and ensure the solutions offer dynamic pricing

The core of an RMS is its ability to analyse historical data and market trends to forecast demand accurately. Evaluate the system’s track record for accuracy and how it handles data from various sources, including your hotel’s historical data, market trends and competitor pricing – and, importantly, whether the data is collected and analysed in real-time.

The ability to adjust prices in real-time based on fluctuating market demand (also known as dynamic pricing) is essential. Assess the RMS’s capabilities for dynamic pricing, including setting pricing rules, incorporating competitive pricing data and applying different pricing strategies for various customer segments and distribution channels.

HOT TIP: Today, “real-time: has become a marketing buzzword in the hospitality technology industry so don’t just take a company’s website at face value when they say that they update prices in real-time; ask them specific, quantifiable questions about what “real-time” is for their system. Be it collecting and analysing data every 8 mins or once every hour, if data is not collected and applied to your pricing in actual real-time, it means that you could miss out on valuable revenue opportunities and be leaving money on the table.

Step Six:

Compare the RMS’ reporting functionality

Illustration of a flip-pad with bar and pie charts

Comprehensive reporting and insightful analytics tools, which are easy to access or share interdepartmentally, are critical for informed decision-making, as best ROI is achieved when the revenue management, marketing, sales and commercial leadership teams work together to make data-based strategic pricing decisions.

Look for RMS that offer (at a bare minimum) the following reports, as these are very useful for all your commercial teams in achieving your revenue and business targets:

Occupancy and RevPAR Report
Provides insights into the hotel’s occupancy rates and RevPAR, to understand demand patterns and set more accurate room rates.

Forecast Accuracy Report
Compares the forecasted demand and revenue against actual outcomes, which is crucial for evaluating the RMS’s predictive accuracy and making adjustments to improve future forecasts.

Segmentation Report
Shows revenue earned from different market segments (e.g., leisure, corporate, group) and helps to improve targeting when developing marketing strategies and optimising distribution channels.

Pick-Up Report
Shows the rate at which rooms are being booked for future dates, providing insights into upcoming demand trends. This is useful in adjusting pricing and promotional strategies to capture as much of the demand as possible, in advance.

Rate Shopping Report
This report compares the hotel’s rates with those of competitors. This information is essential for ensuring that your property is offering competitive pricing and understanding your actual position within the market.

Length of Stay (LOS) Report
Analyses the average length of stay and its impact on revenue, which is useful for creating pricing strategies that encourage longer stays or fill gaps in occupancy.

 

Channel Performance Report
Analyses revenue generated from different booking channels (e.g., direct, OTA, GDS, etc.), enabling the optimization of inventory management strategies by finding an appropriate balance between occupancy and cost of acquisition.

Group Business Report
Details the revenue and booking pace for groups, aiding in managing group rates and availability more effectively.

Budget Performance Report
Compares actual performance against budgeted targets, providing insights into where adjustments may be needed to optimise occupancy and overall revenue.

Displacement Analysis Report
Helps in understanding the impact of accepting a piece of group business on transient bookings, ensuring that the most profitable business mix is achieved.

Step Seven:

Establish the total cost of the system and the anticipated ROI

Illustration in the style of a calendar showing the price change using automated pricing

While the monthly or annual cost of the RMS is important, you can’t base your decision upon that number alone; many vendors charge additional fees, such as initial setup fees, update or support fees and/or integration fees. Weigh the total cost of the RMS against the expected ROI – which comes from increased revenue, improved operational efficiency and enhanced guest satisfaction – and prioritise the system that will give you the best ROI on your spend.

Step Eight:

Ensure the RMS offers optimal privacy compliance and data security measures

The RMS that you choose must comply with industry standards for data security and privacy, such as compliance with GDPR or other regional privacy laws. The protection of your data and your guests’ private information must always be a top priority across your entire tech stack and, of course, that includes your new RMS.

Illustration of a Genie with their arms crossed protecting a webpage

Step Nine:

When you’ve narrowed down your search, evaluate the vendor’s reputation and customer references

When you’ve narrowed down your list to the final 1-3 RMS vendor options, it’s important to do your due diligence on each vendor’s reputation and obtain references from and past/current clients. Look on the vendor’s website for case studies and customer testimonials, but it is important to also read independent reviews (on HotelTechReport and other hospitality industry sites) to understand the actual experiences of other hotels who have used the RMS in the past. As much as possible, look for reviews and references from hotels with comparable pain points that you are experiencing and which are a similar size and type to your property, to better understand how you are likely to experience using the RMS.

Step Ten:

Book demos with the final two RMS vendor candidates on your list so that you can directly compare their offerings and ask very specific, targeted questions about how their solution will address your property’s specific pain points

By this point, you have collected and examined a great deal of information about both of your final options so rather than letting the salesperson go through their standard demo presentation, we suggest you compile a list of questions for the salesperson about your specific pain points/needs and short- and long-term business/revenue goals and go through these questions, one-by-one, during the demo. Also ask each salesperson to compare their RMS to the other vendor’s RMS on each answer so that you can discover each company’s perspective/take to see which one better resonates with you and your specific needs and goals.

Once you’ve completed demos with both of your final RMS vendor candidates, it’s time for you to make your decision, and sign on the dotted line!

I know this can be a long and painstaking process, but by the end of this ten-step process, I know that you will have found the BEST revenue management system for your property, which will be critical in maximizing your future financial performance. Your new RMS will enable you to make better, data-based decisions and establish more effective pricing strategies – resulting in more heads in your beds, at the best possible price and, as a result, driving more revenue, no matter how the market changes.