The Benefits of Working with an RMS in Your Hotel
We start from the RMS (Revenue Management System) concept as an intelligent revenue management system, using mainly the supply of hotel rooms and demand to recommend the optimum price at which rooms should be sold or the type of accommodation unit available.
Today, it is not difficult to find small independent hotels with management teams who believe that “having few rooms” means that their property “does not need an income management system” RMS. In conditions very similar to large hotels, small accommodations are constantly generating data. This is particularly true if the property has a restaurant, spa, bar or other secondary source of income. Without automation, it is difficult to compile and analyze all this information on an ongoing basis so that it can be synthesized at the best rate, at the right time and for the right traveler.
Hotels with less management capacity have fewer resources and hardly have a professional dedicated to Revenue Management issues. This strategy is delegated to the sales manager, marketing department or to the reception manager. This action often leads to off-market rates both upwards and downwards, leaving this type of accommodation at a clear competitive disadvantage. In turn, the large number of factors involved in the booking process become complicated to implement in market research and analysis. Manual management becomes an inefficient practice as accommodation data comes from a multitude of sources, is constantly changing and is critical for making the right pricing decisions. RMS management tools become a solution both for optimizing pricing and availability strategies for large hotels and for automating tasks in less resource-intensive, high-performance accommodations. Here are 6 reasons to choose this type of system as the basis of your hosting strategy:
Avoid mistakes that entail a high cost for the accommodation.
RMS systems work with millions of data and make demand forecasts based on complex algorithms. This causes them to take external data into account when making pricing and availability decisions. In turn, they take into account the value of demand to provide recommendations and modify it where necessary.
Competition on equal terms between independent and chain housing.
Hotels and other hotel chain accommodation models use their own RMS systems. Independent accommodations would play under unequal conditions if they could not access these types of tools. The use of RMS managers facilitates access to data and technology that would otherwise be unfeasible. Competitive advantages are reduced between the different types of accommodation and their market.
Understand market demand through analytical forecasting.
Regardless of the type of accommodation, RMS systems facilitate the recognition of the current demand, the demand that is yet to come and the platforms where the reservations end up being made. This makes it possible to set the right rate for the right customer, at the right time and through the right channel.
Finding the balance between profitability and length of stay.
Whether you have a large number of rooms or a small number of rooms, managing the pace of bookings and their conversion in an optimal way is a critical process for your accommodation. We are looking to accept the most interesting demand for arrival dates and length of stay. All this is totally opposed to a last-minute demand based on accepting rates below the market price.
Levels of customization appropriate to demand.
RMS systems provide information on customer behaviour and enable the accommodation to offer a more tailored offer to your needs. For example, there are customers who prefer rates applied to each night of the stay and others who prefer total rates through which to have a total estimate of the product.
Centralization of information in a single tool.
The fact of not having a tool that centralizes a filter of all the information that the accommodation receives leads to unstructured and incomplete results. The RMS focus their attention under a system encompassing both their own activity and that of their competitive set. The interpretation of the information will facilitate decision making and, therefore, the improvement of results.
The use of RMS helps hoteliers and accommodation managers to make decisions based on real data. A great ally to base decisions on a real-time market analysis. Revenue Management management has gone from being “an art” to being considered “a science”, decisions are contrasted and executed, always measured from a privileged market point of view. At Beonprice, we work to facilitate the management of Revenue while ensuring that the client pays the optimum price and safeguarding the balance of an increasingly competitive market.