The recent developments in revenue management system capabilities have made them more advanced than ever before. Today, we’re able to do intricate calculations at the click of a button that used to take hours of manual work. Dynamic pricing, revenue optimization, inventory management, and yield management are all ingrained in most of the revenue management solutions on the market. With all the features and improvements available, choosing the right RMS system for your property is more complicated than ever. How will you know where to start? Here are a few expert tips on how to choose the right RMS the first time.
1. Is it Scalable?
Scalability is a concern for properties of any size, but especially larger hotel chains. You’ll need to make sure that your RMS can analyze data across multiple segments for multiple properties. Your RMS should also be able to integrate data from multiple revenue segments without requiring upgrades so that you’re using all of your available space most profitably. Your RMS should also offer integrations with OTAs so that you’re able to expand your market reach and increase occupancy.
2. Is it Mobile?
You’re always on the go, so your RMS has to keep up. If your potential RMS lacks the capabilities to display reports on mobile and tablet devices, you’re missing out on valuable functionality. Unless you want to be chained to a desk, mobile support is a must.
3. Is it Easy to Use?
Everyone is pressed for time these days, so the last thing you’ll want with a new RMS is to have to spend hours if not days setting it up. If a potential RMS takes an eternity to implement and interface with your existing systems, it’s not much of a solution. Plus, if the learning curve for you and other RMS users is too steep, you could waste valuable time that’s better spent on maximizing revenue and improving the guest experience. Make sure that your new RMS is ready to go out of the box so that your time isn’t squandered.
4. Is it Customizable?
A low-cost RMS can seem like a great option at first. That’s especially true for smaller properties, where there can be an assumption that they won’t need all the bells and whistles of a full-stack RMS. The problem with many lower-cost systems is that the money you save upfront pales in comparison to the functionality that you’ll miss down the road. Smaller properties in particular need to have options to customize their RMS to local conditions and seasonal events to stay competitive. Plus, properties of any size must be able to adapt their RMS to their specific circumstances, guest segments, and revenue streams for accurate forecasting and profit maximization.
5. Does it Look Beyond Traditional Guest Spending?
Smart hoteliers know that to maximize profits, they’ll need to focus on their most profitable guests. To truly understand who your most valuable guests are, you’ll need an RMS that looks beyond just what a guest spends on their rooms. Your RMS should be able to look at the totality of each guest’s contribution to your bottom line. By looking at ancillary spending, loyalty behaviors, and multiple booking channels by guest segment, your RMS will help you identify your most valuable guests so that you’ll know where to concentrate your marketing and promotional efforts.
Only looking at the price of an RMS system doesn’t tell you the total picture. After all, if you purchase the wrong one, think of all the time you’ll lose! If an RMS is truly valuable, it will do exactly what you want it to do without taking up hours of your time or requiring a manual setup with your other systems. If you’re interested in learning more about how to select the right RMS, check out our whitepaper: “The 2017 Smart Decision Guide to Hospitality Revenue Management.” You’ll find everything you’ll need to feel confident in your RMS purchase.