Revenue management doesn’t often find itself associated with mythical unicorns or other infamous folklore, but there are still some very common misconceptions that tend to swirl around the importance of its technology within the hospitality industry.
Here are four common revenue management myths and why they’ve been officially been busted by today’s automated revenue management technology.
Myth #1: We don’t have any issues manually setting our rates, so we don’t need a revenue management system.
In today’s high-speed environments, manually collecting, evaluating and calculating data via Excel spreadsheets is tedious, time consuming and highly susceptible to errors – and lost revenues.
Revenue management software and automation makes a huge difference. Through algorithms, calculations and powerful analytics, RM systems assess hotel performance on a daily, weekly, monthly and annual basis. Revenue managers can use highly visual dashboards and reports to quickly compare rooms sold and revenue against data at the market segment and total hotel level for the next year.
The system provides updated reports to give hotels a clear vision of their data, bringing more accuracy and consistency to the forecasting and reporting process. The increased business intelligence and accurate granular forecasting makes it much easier to determine correct pricing, optimize demand and increase revenue across a hotel.
Myth #2: I need a dedicated onsite revenue manager to use a revenue management system.
With hotel staff increasingly becoming more mobile, revenue managers can be responsible for multiple properties across multiple time zones – and they need to access their revenue management system at any time of the day and from any environment. Today’s technology makes it possible to make decisions on the go through cloud-based technology and mobile applications.