Hotels are constantly looking for ways to plug revenue leakages, optimize resources and maximize on returns, this is leading revenue management to increasingly gain recognition as a way to do all of these and more.
Revenue management has come a long way since it was introduced in the airline industry. Today with internet marketing and online bookings, revenue managers are moving away from the traditional methods of pricing to adopting a software tool that automates processes and enables real time access to hotel booking. The benefits of automation are many including maximum hotel bookings and competitive price control.
Why Revenue Management?
Although revenue management has been around for over two decades, in the current economic scenario, where costs need to be kept in strict check, and every drop of leakage plugged, revenue management gains new importance for the hospitality industry.
Revenue management is finding use across hospitality market segments, from large hotel chains to budget ones and its use goes beyond the mundane inventory management and rate setting. Most hospitality properties today adopt revenue management systems (RMS) that assist revenue managers to keep track of accounts and reservations that contribute to profit optimization. A good RMS allows hotel managers to increase or decrease hotel room rates depending on the strength of demand and thus maximizes profits.
Today’s evolved RMS tools give hotels an innovative edge, by aligning business goals with technology to maximize revenue and increases profitability.
Analytics from RMS tools also present significant data to understand guest behaviour, booking trends and room demand during various times of the year. With economic fluctuation a strong RMS can help hotels adapt to changing trends by adjusting pricing when required. A strong RMS tool enables hotels to remain competitive during tough economic times by forecasting revenue spends and helping management optimize on revenue better. RMS tools apply a logarithmic approach to analyze data and ensure maximum utilization of revenue, which are much needed during the budget crunch.
Revenue Management Systems for increasing profitability
- Helps hotels identify revenue leakages
- Increase efficiency and improve accuracy
- Aligned with revenue management strategy, RMS drives profitability
- Data forecasting provides valuable insights for management, can help predict trends in market
- Integrated with other ERP tools, RMS provides easy accessibility of information real time
Integrating your Revenue Management System with your Hospitality ERP
Leading software providers have identified Reservation Management Systems to be instrumental in improving profitability of a hotel by 3-6%. When leveraged as an integral part of an ERP, RMS helps determine price changes and room availability real-time. With an increasing number of online bookings, a strong RMS system needs to integrate the requirements of online bookings too.
Integrated into the hospitality ERP a RMS provides real-time visibility into hotel inventory and allows for better room sales and more revenue.
About IDS NEXT
IDS Softwares Pvt. Ltd. “IDS NEXT”, is a global leader in providing ERP and total technology solutions for the Hospitality and Leisure industries. With a track record that spans over 24 years, we have earned the trust of over 3000 customers globally with a strong presence in 40 countries across South Asia, Middle East, Asia Pacific and Africa. IDS NEXT’s clients include a host of prominent hotel chains including Sarovar Hotels & Resorts, ITC Fortune Group, Royal Orchid Hotels, Pride Hotels, Ramada Hotels and others.
IDS NEXT’s portfolio of capabilities include Strategic Consulting, Business Outcome Services, Custom Design and Development, Total Technology Solutions and a range of next generation software products that addresses the hospitality industry, such as independent hotels, chain hotels, business hotels, resorts, clubs, service apartments, limited service, spas, cruise liners and restaurants.
For further information please visit http://idsnext.com/