Democratization of the Revenue Management Software (RMS)

The importance of the Revenue Management Software (RMS) to ease the decision making process of the Revenue Manager is a no-brainer. Still, the RMS is not democratized through the hotel industry and the majority of independent lower-scale hotels do not yet have access to these type of solutions.

Until recently, the top RMSs were too expensive or complex, thus the majority of the hotels couldn’t either afford them or didn’t want to have someone solely dedicated to the RM activity.

Today, however, as new players brought in easy-to-use and affordable RMSs, the question is – does these RMS become invaluable resources for an hotelier? In my opinion – No – they are helpful but not vital. We haven’t verified yet the massification of the RMS because no RMS allows yet automatic calculation and distribution of tariffs with no human interaction. If RMS really want to satisfy hotel’s needs, they can’t be based only in price recommendation. In addition, as channel managers become a commodity, current or future RMS must be able to integrate with CM in a seamless two-way interaction where the RMS sets the selling prices of the different rooms and the Channel Manager performs the automatic distribution in an 100% automated process. This is the only way an RMS can truly saves time to the hotelier, thus where the value perception for this type of solution comes in.

When an RMS (or better saying, a 2 in 1 tool, i.e. RMS + CM) is able to demonstrate that, we will certainly see its massification.