RMS

A Revenue Management System (RMS) is specialized software that analyzes historical data, market demand, competitor pricing, and booking patterns to recommend or automatically set optimal room rates. Modern RMS platforms use machine learning and AI to forecast demand, segment pricing by room type and channel, and adjust rates dynamically in response to changing market conditions. They integrate with the hotel's PMS and channel manager to execute pricing strategies across all distribution channels in real time.

Manual pricing decisions leave significant revenue on the table. An RMS can process millions of data points that no human could analyze, identifying pricing opportunities in real time. Hotels using an RMS typically see 5-15% revenue increases because the system ensures rates are always optimized - raising prices when demand is high, offering strategic discounts when demand is low, and managing inventory restrictions to maximize total revenue.

• 1Choose an RMS that integrates seamlessly with your PMS and channel manager
• 2Trust the system's recommendations but review major pricing shifts
• 3Feed the RMS with accurate data on events, holidays, and local demand drivers
• 4Set clear business rules and constraints while allowing the RMS flexibility to optimize
• 5Review RMS performance reports regularly and calibrate as needed