1. ACCURACY & HIGHER MARGINS Rather than relying on human error-prone manual methods, a scientific approach uses statistical algorithms to effortlessly perform the computations necessary to develop optimal pricing and revenue management decisions. An advanced RMS incorporates wide-ranging factors, swiftly processing data to improve decision-making and produce more profitable results 2. SUPPLY AND DEMAND A key function of a science-based RMS is its ability to forecast unconstrained transient demand rooms that could be sold with unlimited inventory available at a highly granular level, i.e. customer segment, arrival date, room category and length of stay. This is crucial for true profit optimization. As an example, a 200-room hotel with demand for 300 rooms would require a very different pricing strategy than if there was a demand for only 100 rooms on a given stay night 3. Precise Forecasting When it comes to optimizing pricing deci
5 Ways to Balance between Revenue Management and Sales 1) Keep Your eye on the Goal : - Often times sales and revenue Management teams, fail to connect due to conflicting goals. Revenue Management wants to drive average daily rate (ADR) and gets frustrated with sales override decisions and sales gets confused as to why revenue managers quote the rates they do. AN integrated tech stack ensures that sales has access to the big picture and can fully understand the potential of higher-value business that may be competing for the same inventory. 2) A group is a sum of its parts : - Better evaluate a group’s total revenue opportunity by examining it on an individual level as well. Will attendees be buying contacts or colleagues drinks in the bar? Will they be utilizing spa services? These factors must also be accounted for when considering a particular piece of group business. 3) Opportunity Cost : - A newer trend that’s occurring is that, groups are asking hot