Wondering how essential it is to have an RMS? Stay a while, this article is for you.
A Revenue Management System (RMS) is a tool used to make the best decision in terms of pricing and revenue management. It collects, stores, and analyzes data to implement automated pricing strategies. Often, the RMS learns and improves as you go along, is autonomous, and allows you to automate your actions and decisions.
Provided that you understand how it works and that it is not a “black box”, the advantages of equipping yourself with an RMS are numerous. Saving time and money, the RMS has certainly already convinced you. What if there was another benefit?
Saving time and money, two major advantages of an RMS.
- Save time. Your RMS should be perfectly integrated with your PMS. The daily or more automatically updated data and the 2-way connection save your MR team a lot of time.
- Save money. An RMS is not just a BI or reporting tool. It should help you react smarter and faster with its forecasting and optimization capabilities. It alerts you, allows you to create your own alert rules, and recommends Yield actions on different granularity and levers (Price, Min Stay, Rate Class, Inventory).
After more than 10 years of working in Revenue Management, we have had the opportunity to use all kinds of tools. From B.I. tools to real RMS to in-house Excel tools. This allowed us to realize a third major advantage of using an RMS.
It allows you to motivate and retain your RM teams.
Is 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 every day, exporting, applying Excel formulas (and not having to update them during their vacations). They are rightly looking for the comfort of a tool that centralizes the ramp-up, the pick-up, the mix, the budget, the forecast, and the strategies in progress.
We see it in our multiple weekly meetings, your RM team is happy 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 obtained for the Revenue Management department and that they will eventually be overtaken by new innovations in their business, they may be tempted to look elsewhere for greener pastures.
An RMS will not guarantee to retain your teams. However, it can be one of the tools at your disposal to facilitate their daily life and enhance their work experience.
In conclusion, if you or your RM Director thinks that you can’t implement an RMS because you don’t have the staff, maybe you should change your mind. Motivate them to stay with scalable and innovative projects… while saving time and money! Basic!
Whatever the size of your team… Equip them!