RMS connections

A Revenue Management System uses multiple sets of data to respond intelligently to your hotel room prices (price elasticity). Examples are events that take place in the neighbourhood, weather forecasts and the room occupancy in the past. In addition, in the RMS you can configure under which conditions the price increases or decreases, and by what percentage.

What you need to know about RMS’s:

Yes, revenue management never stops. You have to stay updated about changes in the environment and adjust your price accordingly: what are your competitors doing, are there any events, is the weather going to be perfect? All these considerations become easier and less time-consuming with an RMS, as the system already does a lot of thinking for you.

Let’s state in advance that there are complete training courses regarding revenue management and that the strategy can differ entirely from hotel to hotel. So there is no such thing as one standard strategy. What we do often see is that three rate groups are used (25% occupancy, 50% occupancy and 75% occupancy)—the earlier you book, the lower the occupancy and the lower the price. When booking late, the occupancy is higher, and the asking price can also be higher. Please note: selling the room at the highest possible price does not always give a positive result, but also make sure that the price is not too low. It is essential that the room price increases over time and does not become cheaper.

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