RMS connections

On this page you will find all RMS connections from SmartHOTEL. RMS stands for Revenue Management System, a system that is becoming increasingly popular within the hotel industry. An RMS is used to smartly anticipate the prices of your hotel room. For example, the RMS looks at which events are taking place in the area, the weather forecast and the room occupancy in the past. In addition, the RMS sets the conditions under which the price will rise or fall and by how much. In this way, you can offer an optimal number of rooms to the right number of guests at the best price over a longer period of time.

All you need to know about RMS systems

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.

If you want to yield your prices a lot or if you are already doing that, an RMS can make it easier for you. An RMS is there to help you optimise your room sales. Ask yourself if the extra revenue will outweigh the price you pay for an RMS. For a smaller hotel outside the suburbs with little competition, it can be difficult to earn back the RMS, while it can be interesting for large hotel chains and hotels with a lot of competition.

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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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