When it comes to running a successful hotel, Revenue Management is at the heart of maximizing profits. It’s all about making data-driven decisions, and to do this effectively, having the right technology in place is crucial. Enter the Revenue Management System (RMS), a powerful tool that can make or break your revenue optimization efforts. But what exactly do you need from your RMS to manage segmentation properly? In this blog post, we will explore the key considerations for selecting an RMS that aligns with your business goals and helps you unlock the full potential of segmentation.
Seamless Communication Between Systems
Imagine having a highly detailed segmentation strategy in your RMS, only to find out that your Property Management System (PMS) can’t provide the necessary production statistics to support it. It’s like having a top-notch toolbox but missing the essential tools. The first step in evaluating an RMS is to ensure that it can seamlessly communicate with your PMS. You need to check if the segmentation structure in your PMS is flexible enough for your needs and if you can replicate it in the RMS. After all, without proper data flow, your segmentation efforts will be in vain.
Minimum Segmentation Capabilities
Your RMS should, at a minimum, offer basic segmentation capabilities. Depending on your rate structure, it should allow you to independently manage segments with dynamic rates, those with fixed rates, and groups. A robust RMS should empower you to differentiate between these segments and apply appropriate revenue management strategies.
Personalization is Key
There is no one-size-fits-all approach to segmentation. Each hotel has its unique characteristics and requirements when it comes to guest segmentation. Furthermore, the PMS’s data collection capabilities can affect your segmentation strategy. Your RMS must offer the flexibility to personalize the types of segments that align with your specific business needs. It should adapt to your hotel’s particularities, not force you into a rigid framework.
Levels of Segmentation
As your revenue management strategies evolve, your RMS should keep pace. Advanced RMS systems should allow you to delve deeper into segmentation. This means creating macrosegments, subsegments, rate levels, and mapping them to your PMS to receive granular statistical information. You might also want to identify channels and feeder markets for micro-segmentation, which can deliver highly effective results.
Recommendations Aligned with Segmentation
The recommendations provided by your RMS should be in sync with the segmentation it offers. If you have a basic segmentation setup, your recommendations should focus on dynamic and fixed rates. However, as you incorporate more advanced segmentation levels, such as macro and micro segments, rate levels, channels, and feeder markets, your RMS should tailor its recommendations accordingly. Strategic decisions should be fine-tuned to the unique characteristics of each segment.
In summary, your RMS should be your trusted ally in segmentation. It should offer at least a basic level of segmentation, seamlessly integrate with your PMS, and provide recommendations that align with your chosen segmentation strategy. The more personalized and adaptable the tool, the more efficiently you can harness data to make strategic decisions.
When considering RMS options for your hotel, remember that segmentation is not just a feature; it’s a fundamental component of revenue management. Make sure your RMS is up to the task, and you’ll be well on your way to optimizing your hotel’s revenue and achieving your business goals.
