RMS connections

On this page, you will find all RMS integrations of SmartHOTEL. 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 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.

Read the most frequently asked questions about RMS >

What you need to know about RMS’s:

Is Revenue Management an ongoing process?

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.

What is a successful Revenue Management strategy?

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.

Is a Revenue Management System (RMS) important?

An RMS is not a requirement for revenue management (or yield management); you can also do this in a Property Management System (PMS) or Channel Manager. However, if you want to start ”yielding” your prices or already do, an RMS can make things easier for you. An RMS is there to help you optimize your room sales. Do consider whether the extra income, outweighs the price you pay for an RMS. For a smaller hotel far outside the suburbs with little competition, it can be difficult to earn back the RMS costs, while it can be interesting for large hotel chains and hotels with a lot of competition.

Related blogs

blog - revenue management

Revenue Management

Revenue management is a practice known for several thousands of years. The application of this principle is acknowledged from the moment the first human beings started to trade goods for goods, and later for money. The understanding of how the variables between demand and supply influence a price that can be charged for a product or service has defined the laws of economics as we know them today.

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