Wondering how essential it is to have an RMS? Stay a moment, this article is for you.
A Revenue Management System (RMS) is a tool used to make the best optimization decisions in terms of pricing and revenue management. It collects, stores and analyzes data for automated pricing strategies. Often, the RMS learns and improves as situations arise, is autonomous, and enables you to automate your actions and decisions.
Provided you understand how it works, and that it’s not a “black box”, there are many advantages to equipping yourself with an RMS. Saving time and money, the RMS has certainly already convinced you. What if there was another advantage?
Time and revenue savings, two major advantages of an RMS.
Save time. Your RMS should be perfectly integrated with your PMS. Daily or more automatic data updates and a 2-way connection save your RM team a lot of time.
Making money. An RMS is not just a BI or reporting tool. It should help you react smarter and faster, thanks to its forecasting and optimization capabilities. It alerts you, lets you create your own alert rules and recommends Yield actions at different granularities and levers (Price, Min Stay, Rate Class, Inventory).
After more than 10 years in Revenue Management, we’ve had the opportunity to use all kinds of tools. From B.I. tools, to real RMS, to in-house Excel tools. This enabled us to realize a third major advantage of using an RMS.
It helps to motivate and retain your RM teams.
The RMS, a potential lever for building loyalty among your RM teams?
Revenue Managers no longer want to spend time on time-consuming tasks. Copying and pasting entire files daily, exporting, applying Excel formulas (and having no updates during their vacations). They are rightly looking for the comfort of a tool that centralizes load increases, pick-up, mix, budget, forecast and current strategies.
As we see in our many weekly meetings, your RM team is delighted to talk with peers. Most RMS editors are former Revenue Managers! They can stimulate their RM approach and challenge some of the status quo.
Revenue Managers also want to keep an eye on the market. If they see that no budget is being secured for the Revenue Management department, and that they will eventually be overtaken by new innovations in their business, they may be tempted to see if the grass is greener elsewhere.
An RMS is no guarantee of retaining your teams. However, it can be one of the tools at your disposal to make their daily lives easier and enhance their experience at work.
In conclusion, if you or your RM thinks that you can’t implement an RMS because you don’t have the staff, perhaps you should change your point of view. Motivate them to stay with scalable, innovative projects… and save time and money in the process! Basic!
Whatever your size… Equip your teams!