If you are a hotel manager, then a reliable revenue management system is one of the most powerful tools in your data management toolbelt. It enables you to collect, manage and analyse all the data you need to make strategic decisions about your business. You can use it to manage your pricing strategies, create your forecasts, generate cloud-based reports, and monitor your distribution channels. An RMS also helps you track market and demand trends and keep your finger on the pulse of the competition. And all this information is vital for generating maximum revenue for your hotel.
Let’s take a look at the top 5 benefits of using a revenue management system in your hotel.
A revenue management system can help your business avoid information silos and move towards a total profitability approach to revenue management.
Essentially, the concept of total profitability is about creating a more profitable revenue optimisation strategy that considers all your revenue streams and puts the guest at the centre of your business. An RMS can help your business adapt to this shift in the hospitality industry from a basic revenue management model to one based on total profitability. It does this by enabling you to compile all your data from your various sources in a single interface. You can also collect data from each guest touchpoint in order to identify areas for revenue improvement.
At BEONx, we have created a revenue management system that helps businesses adapt to this new total profitability model. Our AI-driven solution helps you optimise your guest journey and shift from a RevPAR to a RevPAG approach to revenue management.
Real-time demand control
A revenue management system gives you real-time demand control. You can use an RMS to compare your historical data with current market and performance levels so that you can accurately predict and instantly respond to changes in demand. This helps you better understand your industry and identify potential fluctuations in advance so that you can launch effective strategies that improve your positioning and optimise your occupancy levels. Essentially, an RMS can potentially transform you into a hotel manager superstar.
Advanced and dynamic reporting
A revenue management system gives you access to features for advanced and dynamic reporting. You can define which metrics and benchmarks are most important for your business and access all the relevant data you need directly from the system. You can then generate all your KPI reports in real-time directly from a centralised dashboard.
For example, you can view reports on your current occupancy levels, pricing and forecasting, competitor pricing, market segmentations, your online reputation, and distribution channel analyses. All this information helps you make data-driven strategic decisions about your business in order to boost all your revenue streams.
Another key purpose of a revenue management system is that it can boost your performance and increase your organisational ROI. This is because, by automating your data collection and analysis workflows, you can dedicate more time to strategy and decision-making.
An RMS also gives you access to the data you need to better understand your hotel’s performance so that you can make the necessary adjustments to your revenue growth strategies. This includes data relating to guests (such as their booking habits and behaviours), and the prices that tend to attract specific segments of the market. Plus, you get real-time access to metrics relating to your internal operations so that you can reduce operational inefficiencies and identify if there are any areas of your business that you need to improve.
Increased financial ROI and profitability
Finally, a revenue management system helps you boost your profitability and your financial ROI. This is because it gives you access to the right business intelligence data so that you can adjust all your hotel strategies in line with the changing nature of the hospitality industry.
For example, you can use an RMS to predict booking patterns and demand fluctuations and identify which revenue streams are underperforming. You can also use an RMS to improve your marketing strategy and increase your brand’s reach on external distribution channels by identifying which booking sources attract the most guests and which guest segments generate the most revenue for your business. Plus, you can use a revenue management system to set realistic and attainable performance goals for your hotel and monitor your progress towards meeting your objectives. All this helps you improve your business results and increase your overall profitability and financial ROI.