Don’t be Sold a Pig in a Poke: 20 Questions to Ask an RMS [Part 2]
A hotel’s profitability is interrelated with technological advancement. That’s why it’s important to continue asking the right questions to help you better understand your hotel’s need.
A revenue management system (RMS) is a technological ally of hotel revenue managers, in the sense that an RMS provides significant data that tells revenue managers what’s happening in the market with their hotel and their competitors.
One way to improve extraction capacity is by integrating information in real time. Numbers alone detect weaknesses in the market or tell you the capacity you have as a hotel to find your niche. If you wish to improve your understanding of revenue management solutions, tools created to make life easier for hoteliers, it’s important to review the 10 questions we’ve mentioned in the previous part of this article and continue with the 10 questions we have prepared below:
1. Is the RMS a good assistant during decision-making? As revenue management systems become more sophisticated with the advancement of technology, it becomes easier for hoteliers to offer a more professional and innovative service. RMS was initially created to help hoteliers manage price and availability; today, hoteliers can work with unconstrained demand, identify the most suitable channels for distribution and even consider distribution activity both online and offline.
2. On what information does the RMS base its recommendations made on pricing and availability? Traditionally, revenue managers only used historical data to make future predictions.This information was very biased since the market is constantly changing, just as tourists do. Currently, revenue management systems work with factors such as their competitors`availability, competitive positioning, online reputation and cancellation policy.
3. What kind of technology does the RMS use? RMS works with Machine Learning. The solution not only makes optimal pricing recommendations, but also learns from the way revenue managers make pricing decisions.
4. Are RMS really flexible enough to adapt to current market situations? As mentioned before, these types of systems work under self-learning models, which allow you to include your hotel’s business rules. But above all, the tool offers flexibility to the hotelier and the final client (the traveler). You can also determine your budgets or work with specific market segments.
5. What types of hotel establishments can use RMS technology? Because of its flexibility and personalization feature, this type of system can be used by all types of hotels. It’s very common for hotels in large cities to use an RMS, but it is also common for vacation hotels to use the tool when they want to make the most of out of peak season. A special case would be hostels and their strong market penetration associated with demand tendencies like millennials.
6. What’s the average RevPAR growth a hotel can expect to gain with an RMS? On average, Beonprice has helped hotels increase their RevPAR by 11%.
7. Are there any significant success stories associated with this type of technology? Major international hotel chains are using revenue management solutions. The different service models offered by Beonprice levels the playing field by allowing independement hotels to compete at the level of renowned hotel chains with revenue management strategies and at a nominal fee.
8. How often does the platform update the data used? The frequency of data refreshing depends on the premium quality of the RMS service. There are several options available for data refreshing that range from daily updates to 5 times daily. Other customers may request that the system be updated every 5 minutes, but it all depends on individual hotel needs and the capabilities of the solution.
9. Are there many integrations that allow hoteliers to work with this system? The market is constantly evolving to make integrations between tools faster and easier. Systems are increasingly becoming more compatible. However, working under API or Web Service makes life easier for development teams. Integration with the main PMS, CRM or Channel Manager tools are already prepared with friendlier and simpler versions to integrate.
10. Do these tools have reporting systems? The future is marked by easy-to-use tools that report the greatest amount of information in a functional way for the user. The RMS must offer a reporting system that allows you to identify your hotel’s activity quickly and clearly.
We hope that these questions and answers have helped shed light on the process involved with choosing the best technology solution and the benefits this system offers. Technology helps generate platforms that make everyday life easier for people. And, RMS technology has come to make life easier for hoteliers. Improve your competitiveness by driving high levels of direct sales to your hotel and avoiding lost revenue opportunities.