What is an automated revenue management system and 6 benefits of using it
Pricepoint is an automated revenue management system, integrated with FrontDesk Master. You can sign up for a free consultation here.
Sometimes numbers, speak better than the story itself.
8 different properties increased their revenues by 19% on average, with Pricepoint. Without hoteliers putting much work into it. That’s the power of an automated revenue management system.
Increasing numbers in revenues are the main benefit of proper revenue management. But that’s not all that’s into it.
So what’s an automated revenue management system?
Revenue management in its finest means selling the right room to the right customer at the right time and at the right price.
Lots of rights, right?
The main objective is to maximize the hotel’s revenue and optimize the costs involved in it.
“Revenue management is the practice of maximizing a company’s revenues while selling the same amount of products or services. Also called yield management, some consider it both an art and a science.”
The automated revenue management system, RMS in short, is the software that helps you, hotelier do the revenue management tasks more effectively and efficiently.
It analyzes hotel and local market data, booking trends 24/7/365, and comes up with the most optimized price for the rooms.
Here are 6 benefits of an automated revenue management system
- It helps you maximize profits from each room
- It calculates and suggests the most optimal rates, so you don’t have to.
You don’t need to worry about complicated algorithms or chasing the trends, because automated RMS was created to do that for you.
3. It has a low cost compared to the results you get (in the case of Pricepoint, our clients got 20x bigger results than the cost of the monthly license)
4. It saves you time which you would need to put into deciding for pricing by yourself (not to mention all the calculations!)
“Time is money” is completely true for the hospitality industry. When you look up to the revenue management definition above, you will notice that it’s not only a number game but also a time game. Losing time in hotels means losing money.
5. You stay ahead of your competition, becoming a price leader. Because it’s not about following blindly what others do.
6. You can make better decisions for your hotel, based on data. Like finally finding the right time to get these room renovations, as an example.
These are the 6 main benefits of an automated revenue management system.
Next, you can learn 2 reasons why dynamic pricing is more important than ever. Especially in the Covid-19 panorama.
Or you can try Pricepoint for free and start seeing its performance from day 1.
This post was published originally on the Pricepoint blog.