How hotels benefit from revenue management systems

Experts believe that so-called RMS are now of economic benefit to every type of hotel. The use of AI is further revolutionising pricing engines. What hoteliers should consider when selecting and implementing.  

But what are revenue management systems anyway? 

A revenue management system (RMS) is a software application used by companies to optimise the price of their products or services in real time, based on various factors such as demand, supply, customer behaviour and the competitive environment. The main objective of an RMS is to maximise revenue by setting the right prices at the right time for different segments of customers.  

An RMS continuously analyses data such as booking rates, historical sales data, weather forecasts, events and other relevant information to generate price recommendations. These recommendations can then be used by companies to make dynamic price adjustments and adapt their pricing strategies. 

A clear message to the industry: Sebastian Küchler, owner of Sebastian Küchler Hospitality Consulting and lecturer at the EHL Swiss School of Tourism and Hospitality in Passugg, now recommends the use of revenue management systems (RMS) to "the vast majority of all hotels, including small businesses" and is not alone in this.  

The expert explains: "Just five years ago, the use of RMS was relatively expensive and the market was dominated by just a few providers with very complex systems. These were only predestined for larger hotels in predominantly urban areas. Today, the technological offering is broadly diversified." 

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