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If I had written this piece 15 years ago, we'd have a completely different scenario.
With fewer suppliers, higher prices, and a very, but seriously very low level of technology adoption and revenue management culture.
And what about today?
The (economic) democratization of technology has definitely improved, too much even. There are many suppliers, perhaps too many, reasonable prices, and solutions that adapt to the different needs of hotels.
Are you part of a global brand or a family-run hotel? The solution is there, and it's for all tastes, sizes and pockets.
So, what approach did I take?
Drawing on my professional experience, industry research, and a deep dive into the websites of leading RMS providers, I analyzed each solution to identify its key strengths and the hotel segments it best serves.
This assessment is, of course, my personal analysis, likely not flawless, but I believe it reflects the market quite closely. If any representatives from the companies mentioned would like to enrich this overview with additional insights, I would be delighted. Their contributions would only enhance the value of this research, ultimately supporting hoteliers in making more informed, confident decisions when selecting the right RMS for their business needs.
First, let's start with the assumption that, without a series of pre-purchase requirements, any RMS choice will most likely be a failure.
Therefore, below I've created a list of requirements that, in my opinion, are essential to create the foundation for a successful RMS investment and, even more so, to generate value and profit for the Hotel.
Before investing in an RMS, make sure that your hotel and the PMS you use meet the following requirements.
Check our RMS Comparison Table here
Culture & Training.
If your entire hotel staff, from the front to the booking office, from the breakfast to the housekeeping are unaware of the strategic decisions of the hotel they work for, and are unaware of their responsibilities and the impact of their roles, each in the right proportion, have on performance, whether positively or negatively, you're starting off with the handbrake on. Departmental alignment is essential. But that's not all: ongoing training and coaching, for everyone in their respective roles, will be crucial to ensuring the company's sustainability.
Data Quality.
Garbage in, garbage out. You already know this story, right?
If the data collected by the front and back office regarding guests at various stages of pre-check-in, during the stay, and post-stay is inaccurate and incomplete, when the RMS is asked to suggest selling prices for the various segments, the basis on which its algorithm will have worked will be poor and imprecise, and consequently it will be unable to do anything but produce equally poor and imprecise results.
At this point I would add that from the point of view of a hotel's objectives, specific KPIs should be created to motivate staff to provide detailed customer and booking data, perhaps KPIs associated with incentives for data entry quality.
Data Capability.
If your PMS doesn't provide granular customer and booking data, and even worse, doesn't have the capabilities to connect to an RMS, obviously my advice is: don't buy an RMS, maybe buy a modern PMS.
Usability.
If your PMS isn't easy to use, it's not a tool that facilitates (and automates, at least in part) data entry, you're not organizing your staff's work to enable and ensure optimal quality of the second point: "Data entry commitment". Result? Once again, poor and inefficient data.
Open API.
Here, we could open a disastrous chapter. Unfortunately, there's still too much fragmentation in this regard.
There are PMSs that don't have APIs, or have them, but are very limited. Then another factor comes into play: commercial interests, the ability to develop scalable integrations, and above all, an open-mindedness that reflects innovation.
APIs mean everything. If your PMS doesn't have this infrastructure, you won't be able to efficiently integrate the RMS; you'll find yourself making an investment that will only yield, at best, 20% of its potential.
And let's face it, if your PMS doesn't have modern and constantly updated APIs, maybe it's time for you to change your PMS.
System Sync.
Does the RMS have all the features you need to ensure accurate analysis and prompt recommendations? Furthermore, is it able to accurately collect all the information from the PMS?
The connection between a PMS and the RMS is a bit like joining the pieces of a puzzle. If they're part of the same technical drawing, that's fine. If they're part of two separate drawings, some pieces will fit maybe, while others won't, resulting in a distorted drawing.
Right Fit.
When you analyzed and viewed various RMS before choosing the one you thought was right, remember, the choice shouldn't be based on factors like: a friend told me... rather, it's a local supplier I like, did you verify that it's aligned with the type of hotel you own, the services you offer, and your clientele?
There are RMS suited to summer resorts, while others are suited to independent city hotels or hotels part of global chains. This aspect shouldn't be underestimated, which is why I created a table to help you better choose the most suitable product based on the hotel/target.
Valid Output,
If, after at least 12 months of using an RMS, which doesn't include activation and setup times, you find that you've almost always overridden the price suggestions, well... then why did you buy it?
There are two situations here: either you presume to know more than the algorithm, or the algorithm presumes to know more than you.
I'll leave the answer to you, Revenue Manager.
Happy Revenue, everyone!
That's all from Enzo, over and out ;)
