Although revenue management is now one of the most important factors for success in the hotel industry, many businesses still view revenue management systems (RMS) with scepticism. The introduction of such systems is often delayed by reservations stemming from a limited understanding of the capabilities of an RMS or from a reluctance to embrace technological innovation.
So, let’s take a look at the most common preconceptions – and see why they don’t really stand up to closer scrutiny.
Preconception 1
My business is too small: an RMS isn’t worth it.
Many operators of small hotels, residences, or guesthouses believe that a revenue management system is only relevant for large hotels or hotel chains. However, the need for professional revenue management does not depend on the number of available rooms, but on the business’s financial objectives. Smaller accommodation providers in particular face the challenge of optimising the revenue from each individual room and each type of stay as effectively as possible. As these smaller establishments often lack a dedicated in-house revenue management team, an RMS can provide valuable support by automating time-consuming analyses and operational processes.
What’s more, businesses that focus on bespoke offerings need an even more precise pricing strategy.
Preconception 2
An RMS requires advanced technical knowledge.
Many hoteliers fear that using an RMS involves a great deal of technical effort. That is why choosing an intuitive solution is crucial – complemented by comprehensive training and reliable support. The quality of a piece of software is demonstrated above all by how easily it can be integrated into day-to-day work processes.
Of course, the introduction of new technologies requires a certain amount of time to get to grips with them and to develop new skills, but a good RMS is not just about automation. It helps to optimise revenue, enhances the guest experience, strengthens the property’s reputation, and helps to reach the ideal target audience. In addition, the training supports the professional development of the entire team.
Preconception 3
I trust my experience more than any technology.
While experience remains an indispensable factor for success, it can and should be enhanced and strengthened through integration with business intelligence tools. Without an RMS, pricing decisions are often based on personal judgements, intuition, or incomplete analyses of competitors’ prices and occupancy rates. An RMS, on the other hand, enables comprehensive and accurate data analysis, thereby helping to drive profitable decisions.
