Top Challenges Faced When Implementing RMS Technology
by Beonprice - 3 October, 2018
Top Challenges Faced When Implementing RMS Technology
There are a number of challenges hoteliers encounter when implementing RMS technology.
To reduce guest acquisition costs, hotels need to optimize distribution channels and minimize booking costs on direct channels. Doing so helps improve traveler perception of quality and price.
When implementing new technology there’s an adaptation period. For many, this can pose an immediate challenge. However, hotels can be more competitive by using systems that are dynamic and flexible, and avoid altogether the challenges that come with implementing new processes.
Here’s a list of the top challenges faced when implementing new RMS technology:
Specialized personnel needed to manage an RMS
However, it’s not always easy finding the right person with the necessary skills to manage hotel technology systems. If a hotel doesn’t have someone for this role, there are two options: 1) to train current staff, or 2) outsource revenue management work. RMS tools save tremendous amounts of time by lessening daily workload. At Beonprice, we understand how complex life as a hotelier can get. That’s why we’re committed to working hard, so you don’t have to. BEONPRICE works to simplify all processes and offer a comprehensive solution regardless of one’s level of Revenue Management. BEONPRICE’s RMS tool provides snapshot information of important metrics and allows you to drill-down into data to perform further analysis.
Technology requires investment
Technology – or the lack of it – is a huge handicap for many revenue managers, especially for smaller, independent hotels. Small and independent hotel chains don’t count on the same resources and budget like bigger players in the industry do, so investing in high-end technology and brought-in expertise become key issues for them. Other challenges hoteliers face are with PMS integrations and the constant need to stay up-to-date with changes in the market. At Beonprice, we provide hoteliers of all backgrounds with choice and flexibility in obtaining vital data when, where and how they want it. Hoteliers are now able to instantly implement the most competitive price using a user-friendly interface.
Spending critical time manually updating spreadsheets is a thing of the past. Hoteliers work in such a fast paced and dynamic industry that they can’t afford to be handcuffed to manual data entry processes. Today’s revenue management technology lets revenue managers reach well beyond a scope limited to the hotel work day. Revenue management technology has evolved in such a way that it now offers hoteliers flexible-based solutions for resource optimization. Advancements in these system technologies lets hotels drive better revenue and frees managers from manual tasks, thus increasing productivity. It’s clear that RMS technology offers many benefits, especially with tasks like pricing, managing inventory by channel, forecasting and analyzing marketing segments. With more free time, hoteliers can now spend time on things that matter, like strategic planning, employee proactivity, and discuss marketing initiatives and market performance.
Communication between departments
Interdepartmental communication is fundamental for developing revenue management strategies, however, rarely is it implemented well. On many occasions, CEOs, and sales and marketing teams may have differing goals and approaches on how to generate income. Some of the challenges hoteliers face when implementing an RMS is finding common ground between departments, adapting the solution to the company’s structure and balancing communication actions with sales. However, these challenges can be solved by planning under common objectives and holding sales-focused meetings.
Measure distribution costs
From the very first moment, distribution costs must be identified. However, this is easier said than done. It can be difficult to determine the real cost of each channel if you work with a combination of traditional channels (GDS and phone) and online channels (corporate website, OTA’s, hotel Google Ads, etc.). The ideal situation would be if technology could accurately measure the entire customer acquisition process. Revenue management solutions help hoteliers determine best channels for distribution and measure channel ROI. This is a technological challenge, but we’re committed to finding solutions and taking care of our clients. We’ve already seen great results.
Flexibility and the right strategy to implement this technology
Because revenue management systems offer many perks such as the ability to generate dynamic offers and distribute these rates to new channels, hoteliers are able to make faster market decisions. With the right strategy, structure, personnel and technology you can maximize productivity, increase efficiency, and boost the bottom-line of your hotel’s operations.
Implementing a revenue management strategy can be challenging, especially if your hotel doesn’t have the right structure to support the change. The goal is to optimize all channels and drive as many direct bookings as possible. The good thing is that technology is constantly evolving. Thanks to revenue management technology, hoteliers can make fact-based, data driven decisions and react quicker to market changes, all in one place. No more wasted time on manual processes with higher risks of human error. Instead, spend more time focusing on strategy and less on basic logistics and rely more on unlimited data insights to make pricing and strategy decisions.