A business should not invest in a simple revenue management system simply because it is easier to comprehend. Implementing a decision management-based platform has numerous advantages.

Fremont, CA: It's critical for hoteliers thinking about investing in a revenue management system (RMS) or reevaluating their current revenue technology to thoroughly comprehend their RMS options. Of course, each system has its own set of connectors, capabilities, and visualizations, but whether an RMS provides decision management or decision support is a crucial differential. Some people in the hospitality business believe that a decision-management RMS is too sophisticated to comprehend properly. Prospective RMS purchasers may prefer to utilize a simpler decision-support tool because they can see how it works and alter it to their satisfaction.

Decision support can provide data to help with occasional strategic decisions, but organizations should not forget about the tactical decisions that must be made every minute of every day.

Pricing Tools vs. Revenue Science

A decision-support solution may be referred to as a pricing tool rather than a full RMS. Several hotels use pricing systems to change room rates and yield to increase revenue. Despite the fact that these systems can provide reports and handle rate changes, they are still mostly reactionary and rules-based, and they are unable to process massive amounts of data or give deep analyses. A decision-management RMS, on the other hand, breaks down huge data to give accurate and actionable data-driven insights and decision empowerment at every stage.

Solution for the Age of Uncertainty

Some in the industry have questioned the RMS's current value in the aftermath of the epidemic and the resulting disruption. However, this is a misconception because today's smart solutions do not require strong demand or previous data to optimize income. A decision-management RMS will price all items optimally, taking into account cost and profitability and doing so on autopilot if necessary. Even (and especially) at times of greatest uncertainty, technological advancements help a hotel wring out money. The greater the degree of uncertainty, the more reliable, precise, and relevant data is required to support judgments.

Supporting decisions

The ultimate purpose of revenue management is to price perishable goods in a way that maximizes overall revenue and profitability. Pricing different inventory kinds, through different channels, on different days, to different categories of guests is a difficulty for revenue managers trying to do this manually or with inadequate technology. It comes down to rules-based, decision-support tools that provide recommendations versus analytics-based, decision-management solutions that automatically produce powerful decisions that manage pricing, rate availability, and more, with a variety of automated revenue management solutions and pricing tools on the market to consider.