Revenue management systems

A revenue management system (RMS), also sometimes referred to as yield management software, is a tool that helps to analyze, automate, and optimize a hotel’s pricing strategy in-real-time to increase revenue and ultimately profitability. The overall objective being in line with the basic principle of revenue management: offering the right product to the right customer at the right time for the right price on the right channel. By evaluating available data (of i.e. supply and demand, historical and market data) a Revenue management software provides and implements pricing recommendations for various room types, segments and channels. Recently, RMS providers have moved from on-premise to cloud-based applications that are delivered as Software as a Service, meaning that algorithms are constantly improved based on thousands of aggregated data points collected by vendors.