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.
What is a hotel RMS?
RMS stands for Revenue Management System, a system that is becoming increasingly popular within the hotel industry. Whereas previously an RMS was only affordable for hotel chains, there are now many different systems available for every type of hotel. What is a PMS system used for?
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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