Leveraging data for smarter revenue management

Technology, data intelligence and automation are transforming revenue management in the accommodation sector.

Accommodation providers can benefit from innovations such as predictive analytics and demand forecasting, AI-powered pricing tools and performance optimisation platforms.

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A Revenue Management System (RMS) offering these features, coupled with human oversite and staff training, can ensure your property is always at maximum occupancy and performing strongly financially.

The latest technology

Your property may already have an RMS. Technology, though, has evolved faster and faster in recent years, meaning it might be time to reevaluate your system. Consider if your current system provides all the features you need, or if you might be paying for features you don’t use.

Speak with your RMS provider to see if there is training you could undertake to make sure you are using the technology to its full potential.

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Chris de Closey, Director at Switch Hotel Solutions, said revenue management tools have developed significantly in recent years.

“The introduction of features such as automatic yielding, forecasting and competitive set analysis tools allows revenue managers to save time in their decisions. It also allows the operator to automate large portions of their work.

“A revenue management system analyses huge volumes of data including past performance, current pickup, market demand, competitor pricing, seasonality, events, booking windows, and more. It then converts it into clear, actionable insights.” 

“Instead of a manager manually crunching numbers or adjusting rates based on gut feel, the system continuously monitors conditions and recommends the optimal price at any given moment. It’s like having a revenue analyst working round the clock,” Mr de Closey said.

“The speed at which systems can update, and the number of overall updates it can do, far exceed that of human capability. The introduction of these tools has created amazing revenue growth for hotels, and this will continue to trend upwards as the tools continue to develop.”

Data-backed price adjustments

A revenue management system (RMS) can help ensure you always get the best price for your rooms. By analysing market trends, competitor rates, guest demands and historical data, a RMS provides data-informed price adjustments.

Hayley Armstrong, Senior Revenue Manager, APAC, at RoomPriceGenie said a RMS that offers both automatic rate adjustments and manual control gives operators the strongest and most flexible pricing strategy.

“Automation updates rates whenever demand changes, ensuring you never miss revenue opportunities because you were busy, not in the office, or unaware of sudden market shifts.

“It saves time, reduces human error, and keeps pricing consistently aligned with real time demand.”

“Manual adjustments allow accommodation operators to apply their own knowledge, such as local events, operational considerations, and strategic experience, and override automation whenever needed. This provides users with confidence, transparency, and the flexibility to tailor pricing to their specific business goals. Working together, you have the efficiency and precision of an algorithm, with the reassurance and expertise of human oversight.”

Lightening the load

Manual data entry and analysis can be time consuming and repetitive. You or your accounts and finance team might need to spend hours each day observing trends and crunching numbers to ensure your property remains competitive. Even then, humans make mistakes, which could end up costing your business money.

Matt Rose, Commercial Director, APAC at RoomPriceGenie said technology is great at doing the heavy lifting of manual repetitive tasks, and is exactly what it should be doing. “In the case of an RMS, a system should be able to look at and analyse internal sales performance data. A system should also be able to look at and measure market movements.

“Where the human element comes in, is to advise or guide the system by way of parameter settings based on your knowledge around seasonality, and demand drivers for your particular property and location.

“Essentially, you should control the strategy, and allow an automated pricing system to work its magic to achieve the outcomes you define.”

Automation, Mr Rose said, can help eliminate human error, and ensure accommodation providers are always getting the best room rates. “When manually adjusting rates under pressure, the pricing that operators put out to market is often incorrect, as they’ve not taken sufficient time to truly understand what is going on within the market.

“For example, if an event is announced creating a need to increase prices, either they’ll increase their pricing but by not enough, therefore leaving money on the table, or too much, potentially turning off demand for their property all together.”

Integration is key

An integrated RMS, Mr de Closey said, is essential. “Don’t just have something that runs alongside your existing property management system, it needs to live and breathe the same data and make the updates in real time. Ensure you select the tech that offers integration to your systems to make your life easier.

“A well-integrated revenue management system will give you the clarity, confidence and control you need to stay ahead of the curve.”

“The right system will provide real-time visibility, forecasting accuracy, and automated alerts, allowing properties to react immediately to changes in demand.

“This means opportunities aren’t missed, revenue isn’t lost and pricing always reflects true market value.”

Mr de Closey’s final piece of advice is to embrace technology, and use it to your advantage. “Don’t get caught up thinking you can outperform technology, it is here to support you and make smarter, faster and more efficient revenue management decisions.”