Revenue Management Systems
Revenue management is a key concept within the hospitality industry, because hotels must contend with fixed costs, a perishable inventory and varying levels of demand. Typically, revenue management involves using analytics and available data in order to predict demand, make strategic pricing decisions and maximise revenue.
Essentially, a Revenue Management System, or RMS or short, is a software solution, which allows you to carry out important revenue management tasks more efficiently and effectively. It will make use of data from your own organisation, and from the market at large, in order to help you to make more informed decisions. Typically, a good Revenue Management System will use the data and its own algorithms to carry out a real-time analysis of the state of the market, and of demand, in order to calculate ideal room rates. As a result, most of the important revenue management decisions can be carried out from a single, centralised dashboard.