Hotel revenue management is an essential part of any hotel. No matter how popular the hotel is or how much it invested in the comfort of its guests, it can only make profits with proper hotel revenue management.
While most small hotels stick to conventional ways to make predictions, change pricing, and maintain inventory, large hotel chains use revenue management systems, or RMS, to automate these processes much more efficiently.
The hospitality industry suffered a huge blow, losing an estimated $335 billion for the past year, and every cent of profits is God-given to recover after such a devastating season. That’s why smaller hotel owners now turn to an automated machine learning system for financial recovery.
Here’s how RMS helps hotels make profits and the list of the five best ones in 2021.
What are hotel revenue management systems?
Hotel revenue management systems are automated tools that analyze data to make adjustments in different areas where expenses can lose profits. These systems make predictions based on live data and change pricing on rooms according to demand on the market.
While hotels use PMS for property management, RMS helps them turn profits at the end of the year by carefully analyzing the demand on the market and regulating the prices to stay competitive while still making money.
While forecasting was a virtue of successful hotel managers, a machine learning system can now take over and make strategies for them– taking a large burden off their shoulders.
Among many publications from Mr. Zhechev, an expert in hotel management, a proper revenue management analysis is essential for a sustainable operation, and RMS is a perfect tool for achieving that goal.
What to look for in a hotel revenue systems
Hotels with fewer rooms should use artificial intelligence to maximize their revenue, as they have fewer options to turn a profit. When looking for adequate solutions, owners should look into the most important functions of RMS.
- Quick adjustments
RMS will make quick decisions when calculating the optimal prices on available rooms by observing occupancy and reservation rates across the market. With swift decision-making, RMS will calculate the optimal pricing for a room to make profits.
- Revenue estimates
While making decisions and adjusting rates, RMS will make the lowest or highest revenue estimations owners can use to make a business strategy for the whole year.
- Analyzing competitors
RMS analyzes all the competitor hotels in the area by observing their rates. It will calculate what adjustment it needs to make to stay on top while still turning profits.
Top 5 RMS solutions
1. IDeaS
IDeaS, a SAS company, is one of the industry leaders, designing one of the most popular systems in the hospitality industry. Their 30 years of experience compiled into sophisticated software helps over 14,000 clients in more than 14 countries worldwide.
IDeaS helps revenue managers make business decisions to ensure a profit at the end of the year by automating processes and predicting the market’s trends. With a sophisticated data analytics system, IDeaS makes adjustments with a high success rate.
Pros:
- Great user experience
- Precise analytics
- One of the longest-running software
- Has a mobile app
- Multi-property management
Cons:
- Complex software
- High pricing
Pricing:
- Free demo
- One-time purchase starting at $1000 up to $10,000
- Monthly subscription starting at $10/room per month
Rating based on user experience:
| Ease of Use | 4.4 / 5 |
| ROI | 4.7 / 5 |
| Implementation | 4.4 / 5 |
| Customer support | 4.6 / 5 |
2. Gamechanger by Duetto
As a direct competitor to IDeaS, Gamechanger by Duetto is one of the best RMS software for precise data analytics and revenue adjustor. To maximize the booking revenue, Gamechanger gathers leverage data to predict even the slightest changes on the market.
Hotel revenue managers have great insight into the market’s behavior and pricing predictions while using Gamechanger. They can base their business decisions while reading complex analytics to beat the competition.
Pros:
- Ten years’ experience
- Easy to use
- Good customer support
- Easy implementation
Cons:
- Lack of mobile app
- Lack of “What if” predictions
Pricing:
- Free demo
- $10/room per month
Rating based on user experience:
| Ease of use | 4.7 / 5 |
| ROI | 4.5 / 5 |
| Implementation | 4.8 / 5 |
| Customer support | 4.8 / 5 |
3. Atomize
Relatively young on the market, Atomize uses the latest analytics tools to predict future changes and empower revenue managers to analyze profit loss before it’s too late. Atomize is active in more than 50 countries worldwide, and it’s a rising star in the hospitality industry.
Pros:
- Simple to use
- Multi-property management
- Has a mobile app
- User satisfaction
- Works perfectly with PMS
Cons:
- Lacks five-year forecasting
- Some users reported it’s difficult to implement
Pricing:
- Free demo
- Basic $7/room per month
- Upgrade $10/room per month
Rating based on user experience:
| Ease of use | 4.8 / 5 |
| ROI | 4.4 / 5 |
| Implementation | 4.5 / 5 |
| Customer support | 4.5 / 5 |
4. Pace Revenue
Pace Revenue uses optimized price adjustments to ensure hotel room’s pricing is one of the most competitive in the area. It analyzes provided data from the area and strategically plans adjustments in pricing according to bookings and room occupancies. A fairly your software, it has everything a hotel would ever need to make profits.
Pros:
- Advanced customer support
- One of the friendliest user interfaces
- Easy implementation
- Many satisfied customers
Cons:
- Lack of future market demand data
- Lack of five-year forecasting
Pricing:
- Free demo
- Hotel $6/room per month
- Hostel $2/room per month
Rating based on user experience:
| Ease of use | 4.8 / 5 |
| ROI | 4.6/ 5 |
| Implementation | 4.9 / 5 |
| Customer support | 4.9 / 5 |
5. RoomPriceGenie
RoomPriceGenie is easy-to-use RMS software for small accommodations looking to compete with larger chains by offering competitive prices. Its advanced features enable managers for less working hours by automatizing complex actions. RoomPriceGenie is one of the rising stars in the hotel industry worth giving a chance.
Pros:
- Advanced customer support
- One of the friendliest user interfaces
- Easy implementation
- Many satisfied customers
Cons:
- Lack of future market demand data
- Lack of five-year forecasting
Pricing:
- 30-day trial
- Hotel $6/room per month
- Hostel $3/room per month
- $500/month Flat subscription
Rating based on user experience:
| Ease of use | 4.7 / 5 |
| ROI | 4.7/ 5 |
| Implementation | 4.8 / 5 |
| Customer support | 4.8 / 5 |
Graduated from Standford University, Arielle has over 5 years of experience in the Hospitality industry. She holds an MBA in business administration from the IDC Herzliya, Israel. She currently works as Account Manager at UpStay, building and maintaining strong, long-lasting customer relationships. She is deeply passionate about helping hoteliers unlock significant new revenue streams from unsold premium inventory.
