RMS: The future in your hands

Is optimising revenue an art or a science? For hoteliers focusing on delivering great guest experiences, it has to be a balance of both. Revenue Management helps hoteliers achieve the right balance. It is a future-facing discipline that enables hotels to find the best fit between complex demand patterns and a fixed supply of rooms.

Demand for rooms comes from many different segments, with each segment having its own price sensitivities and its own booking patterns. Business guests book late and are willing to pay a premium. Leisure guests book earlier and want to pay a lower price.

The massive expansion of online business also means inventory is available through many more sources, and the cost of distribution has become a bigger factor than before. Hotels now face different costs and yields through many different channels, such as their own websites or through online and traditional agencies.

In short, hoteliers have to contend with more and more variables – and it is impossible for a human being to do the complex calculations required to optimize sales and revenues every day. This is why more and more hotels are turning to revenue management systems.

Amadeus Hotel Revenue Management System (RMS)

At Amadeus, revenue management is about much more than calculations to manage yield. With the Amadeus Revenue Management System (RMS) hotels gain control over the future – and make a big impact on the bottom line.

The key is to turn vast volumes of data into useable management information and solid intelligence about channel volumes, products and booker behaviour.

With the rich information generated by Amadeus RMS, models are created that represent the many business and booking trends for each property in their portfolio. As well as enabling hotels to compare their position today against the trend, they can also see this data in future demand forecasts.

With these forecasts, Amadeus RMS manages future demand by determining factors that increase yield and revenues such as the lowest room price they should offer for any future date for any individual or for a group of customers.

The next enhancements to Amadeus RMS will be improving interfaces and communication to satellite systems – enabling true dynamic pricing and giving hotels even more control over their futures.

See the bigger picture

No hotel is an island – and Amadeus RMS helps to look at competitor activity and the need for multiple hotels to manage demand across a portfolio of properties.

By tracking competitors with automatic tools like Rate Tiger, Amadeus can build competitive set data into their RMS, ensuring the hotels maintain the optimum pricing relative to the market.

For locations with multiple hotels, Amadeus offers a purpose-built RMS to deliver cluster optimisation. This means that cross-selling and global demand for all hotels is factored into the pricing models and controls across a cluster of properties.

With the Amadeus solution, hoteliers can always see the bigger picture. And this insight does not have to be restricted price setting or overbooking. Anyone who touches revenue in a hotel organisation, and not just yield analysts, can benefit. Sales and Marketing, for example, can use the management information to assess promotions (how did they translate into actual bookings?). Even the Head of Housekeeping can use the information to plan cleaning rosters and refurbishments.

A consultancy approach

Solutions like Amadeus RMS may be very smart but to make the most of them, hotels need to make sure their processes are optimised. Amadeus spends around 16 days on average to implement RMS in a hotel – more than any of its competitors. 70% of this time is spent getting to understand the hotel’s processes and ensuring they run in harmony with the system. It´s not just about installation of a software programme. It’s also about ensuring business and operations processes are optimised so maximum revenue is achieved. For a solution with so many interfaces, and such an impact on the bottom line, this consultancy approach is a critical factor for success.

Tangible evidence of impact

“Am I making the money I should be?” This question is asked by many. Amadeus also offers post-installation performance monitoring tools and services that provide tangible evidence and proof of the impact of applying revenue tactics. These tools and services help give the complete picture of applying a successful revenue management strategy and solid support of excellent Return on Investment.

Top of the page