Over the course of time, hotels experience major shifts in demand, rigid supply, and high fixed costs. What is Revenue management in hotels? Hotel Revenue Management Software automates the process of data analytics to predict these shifts in demand and price. As a result, it helps in maximizing revenue and profits.
Do you want to maximize revenue? Do you need RMS software that helps you make better pricing decisions? In this article, you will learn more about the importance of the Revenue Management concept and the key benefits of Revseed – the best Revenue Management System for hotels.
What is Hotel Revenue Management?
Revenue Management is a key concept in the hotel industry. It involves using data analytics to predict varying demands and devise strategic data-driven pricing strategies to maximize revenue. The primary goal of every hotel is to:
“Sell the right products and services to the right customer for the right price through the right channel.”
So how will you achieve your primary goal, cover the high fixed costs and also make more money?
By using a good Revenue Management System for hotels, airlines, etc. a software solution that offers real-time analysis of the market and demand. It helps to make strategic price decisions for hotel rooms and services to boost revenue and profits.
The software features a single, centralized dashboard. It uses historical data, demand signals, and market triggers to provide insights for each room type and segment at the hotel.
Read more here.
Interesting Facts About the Hotel Industry Growth in India:
- Hotel revenue is projected to reach INR 6292 billion in 2025
- Hotel revenue will grow at an annual rate of 2.49% (CAGR 2020-2025)
- Hotel users are expected to amount to 592 lakh by 2026
How Can Revenue Management System Help Your Business?
A Revenue Management System for hotels, airlines, etc. can help you understand your business and customer. It takes into account variables like products, prices, discounts, promotions, inventory levels, and more.
The software provides managers with data about the profitability of different products and services and how the algorithms work. It also enables firms to optimize their products and services with the help of data.
In addition, it analyzes purchase data, customer purchasing habits, marketing campaigns, and other metrics. You can sell more goods or services than your competitors through RMS to boost profits.
It can be used to:
- Save time and money with price automation and one-time setup cost with a low maintenance fee
- Guide a firm in finding new markets that are profitable for them.
- Measure the response of an ad or campaign by comparing the metrics.
- Offer analysis on different strategies that can be used by a firm to increase their revenue, reduce costs, or any other goal they may have.
One software that provides the best-in-class Revenue Management hotel solution for hotels is Revseed. Revseed, a software by Revnomix provides you with the best Revenue Management service which is operated by experts.
Revseed – A Leading Revenue Management System for Hotels
A Revenue Management system for hotels, Revseed automates the process of using data analytics for hotels to determine the right price for hotel rooms to maximize revenue and profits.
The hotel industry is constantly changing & hotels are always looking for new innovative ways to improve their KPIs. Revseed by Revnomix uses machine learning algorithms, and artificial intelligence to boost your hotel’s performance.
4 Strategies to Increase Revenue with Revseed
A Revenue Management system for hotels, Revseed’s strength lies in its range of Revenue Management strategies. These include focusing on volume, rate, market-linked, and other strategies along with Artificial and Business Intelligence and Machine Learning.
Volume Strategy –
Revseed understands your company’s goals and will suggest the optimal price for floor space based on that.
Rate Strategy-
Revseed will recommend the best price for you to optimize your rate.
Market Linked Strategy-
Revseed sets the hotel prices based on the worth, positioning, and pricing of other competitors.
Availability Strategy-
Revseed will recommend the best price based on the availability of rooms.
What are the Benefits of using Revseed?
Revseed is the best Revenue Management system for hotels that uses machine learning and AI to optimize business operations. It utilizes cutting-edge technology to deliver rapidly evolving solutions tailored to all business goals.
The software enables firms to maximize their productivity by efficiently leveraging available resources. Features you get when you sign up for Revseed are as follows:
Strategy Management at a Click – Multiple Strategies are available daily to adapt by Day/Period/Horizon.
Multiple Strategy Selection- You can select from different strategies including Volume Strategy, Rate Strategy, Market linked Strategy, and Availability Strategy for data-driven results.
Smart Strategy Calendar– It includes an Interactive calendar with Actionable KPIs.
Automated Multiple Optimizations– Decision Upload multiple times daily/365 Days.
Yielding Slate-You can use Interactive Yielding Slate with data points to boost revenue in India.
Integrated Platform– It delivers integrated hotel Revenue Management solutions like built-in distribution platforms that include Booking Engine/Channel Manager / Website
Support– Revseed provides 24/7 virtual support by our Revenue Experts.
Popular Companies Using Revnomix
Revnomix, a Hotel Data Analytics & Revenue Management Company provides simplified solutions for hotels to process data, make informed, accurate decisions and grow their business.
With many years of experience in the hotel industry and RMS business, their professional experts utilize the latest technology and customer service to make data analytics and Revenue Management seamless for clients.
The Leela
The Leela, a luxury hotel and resort brand with award-winning properties reached out to Revnomix with concerns around the processing and usage of data. These challenges were arising due to manual intervention of data processing and data from different hotels in different formats.
How did Revnomix help?
Standard Data Management: The manual process of MIS reporting was completely replaced by an automated BI Platform. Data that was everywhere is now consolidated and managed systematically.
Automation: Automated daily & weekly reporting with insights based on AI and machine learning featuring sales productivity, nationality report, daily MIS, Pace, STR, etc.
Dashboard: The centralized dashboard offers role-based access for users – Asset, Regional, Unit, Department, teams, etc. Provided a robust process of forecasting and monitoring with data availability at a click. A detailed description of trends, performance insights, and relationship insights.
Analytics: Revnomix offered Descriptive, Prescriptive, Diagnostic, and Predictive analytics to boost overall performance.
ALEPH Hospitality
ALEPH Hospitality came to Revnomix with specific problems covering 5 major areas across branded & non-branded hotels.
- Hotel Onboarding Process
- System Setup
- Standardized Reporting
- Implementation of Revenue Optimization Process
- Tracking & Monitoring
How did Revnomix help?
Standard Operating Procedure (SOP): Revnomix built and set up Hotel on-boarding process system architecture, revenue optimization, forecasting process, and strategic engagement.
Automation: Manual process of MIS reporting was replaced by automated Business Intelligence. Data was consolidated and managed systematically. It included automated daily & weekly reporting with insights based on Artificial Intelligence and Machine Learning.
Revenue Optimization Process: Revnomix introduced a robust process of Forecasting and Monitoring, resulting in higher performance. Delivered solutions for analyzing historical data & future demand data patterns & pace that enhanced data-driven decision making. Also, defined strategic engagement.
Data Analytics: The management & Revenue Management team can now analyze historical performance. Also, they can compare future data patterns and pace for revenue optimization purposes with tracking & monitoring.
Zara’s Resort
Zara’s Resort is a luxury hotel located in Khandala, on Mumbai-Pune Old Highway. The Resort offers conference venues and facilities, lawns, restaurants, entertainment facilities, a swimming pool, and the biggest kids pool in Khandala and Lonavala, making it a complete family resort.
The repositioning and strategic pricing processes implemented for Zara Resort led to improved visibility on OTAs, which in turn led to steady growth in Average Daily Revenue (ADR) and Length of Stay (LOS). The concentrated efforts of the resort and Revnomix team led to an improved booking pace.
Revnomix is one of the best Revenue Management companies for hotels in India. Revnomix has delivered a Revenue Management system for hotels and resorts globally like The Leela, ALEPH Hospitality, Zara’s Resort, Hotel Harbour View, Taj Tristar, The Indana Palace, and many more.
Why is Revenue Management System Important for Hotels?
RMS delivers a 360-degree insight into the hotel industry across all business verticals like marketing, finance, sales, operations, etc. A Revenue Management System for hotels ensures that these verticals work together so the business is running smoothly and they don’t incur high costs or risks with their business decisions.
Here are some reasons why RMS is important:
Help you forecast booking trends: A vital part of revenue managers’ duties is analyzing historic data and forecasting the trends for the future. They use a wide range of information to help with this, including booking patterns during the day of the week, events festivals, and guest behavior.
Eliminate Errors: One of the main benefits of a Revenue Management System is that it can help hoteliers update prices in real-time, saving them the hassle of manual errors. It’s one of their biggest advantages!
Helps in data-driven decisions: By implementing Revenue Management tools, you can collect accurate data about the demand & price. This allows you to forecast for the future and create pricing strategies with a competitive edge.
Help hotels implement proactive pricing strategies: Detailed analysis help revenue managers develop specific strategies that meet the needs of their business and implement proactive dynamic pricing strategies. By doing so, year-over-year margins can be increased and a lot more revenue can be handled by the business.
Build new revenue streams: One advantage that you get when you use outsourced Revenue Management is access to market insights. This way, your staff can provide the best guest experience & take care of your guests in any situation.
How to Choose the Best Revenue Management Software for Your Business?
Different Revenue Management software comes with different features. So, you need to decide which software will meet your business goals. Also, it’s important to understand what features your company needs and what hotel Revenue Management services these tools offer before making a decision.
Here are some features that you should look for when choosing a Revenue Management system for hotels:
1. Ease of implementation– Look for a system that integrates easily with your property management systems. They should integrate so you aren’t burdened by having to update or deal with other issues during installation.
You might not want to bother with implementing a custom connection that requires manual work, so you may choose to go for an option whose implementations are quick & easy.
2. Level of Integration– Your PMS, CRM, channel manager, etc. are all tools that provide different functions for managing your property. Connecting them will ultimately make them more effective & efficient.
To choose a Revenue Management System, look for integrated solutions that are seamless & automatic. This means it should offer reliable two-way data flowing across systems effortlessly to streamline your work process
3. Intelligent Reporting– RMS is excellent at automatically tracking important information to let you know when there are drops in important metrics, special events influencing sales, or actions that could improve revenue.
Your Revenue Management Software should be able to export & share important data with you without too much effort on your end. This should allow you to focus on other important things that are pivotal for your business.
4. Automated Updates– Managers work much more efficiently with AI. Automating repetitive tasks, like uploading rates to Channel Managers, helps managers focus on what they do best.
The objective of your Revenue Management system is to ensure operations run smoothly and accurately, while also working with very low error rates.
5. Support– Ensure that the solution you’re using provides a responsive support team that quickly resolves issues and builds trust. Not only does this build trust in the solution, but it also provides quick responses and happier staff that lead to increased productivity.
Conclusion
Optimize your Business for growth by using the powerful Revenue Management System for hotels by Revnomix.
Many businesses are struggling to stay afloat. As a result, Revenue Management software in hotels has become the backbone of the entire business. At this point, it is important for businesses to make sure that they are optimizing their business for growth. The only way to do so is by using good Revenue Management software.
Good Revenue Management Software helps businesses be more proactive in managing their revenue. It helps them to plan, manage, and optimize their revenue. It helps businesses to grow and capture new opportunities available in the market. It also allows firms to create strategies for growth with their current resources.
Revnomix is one of the leading hotel consultants in India. Contact Us.
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Top Revenue Management System for Hotels – Get Free Demo
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Do you want to maximize revenue? Learn more about the importance of revenue management & key benefits of the best Revenue Management System for hotels by Revnomix
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Revnomix Solutions
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