Revenue management software (RMS) has made considerable strides in recent years. The transformation to cloud-based systems has meant more flexibility in the software development process, accelerating the pace of new feature sets and capabilities. These shorter cycles allow the software to more accurately meet the emerging needs of businesses, a huge relief for organizations that had to deal with frozen legacy technology for years.
Also known as a revenue optimization (RO) tool, the top revenue management solutions help businesses optimize revenue through better pricing decisions. While the requisite inputs vary across solutions, the two principal factors that determine price are the demand forecasts for the local market’s popularity, as well as the forecast for an individual’s property. The recent application of AI and analytics has also infused the automation element into RMS, although some solutions offer businesses the option of controlling prices manually.
While a number of businesses have found application for revenue management software, the airlines and hospitality industries are evidently the biggest beneficiaries. Some of the most common features of an RMS are real-time connection to distribution channels and real-time calendar updates of new bookings and cancellations. Other RMS features include demand-based pricing optimization at both market and property level, customizable levels of automation for adjusting pricing in real-time, and integrated demand forecasting for making informed pricing decisions. Moreover, most RMS solutions can be easily integrated with a company’s computer reservation systems (CRS) and business intelligence tools, allowing organizations to make a seamless transition to a revenue management solution.
Another critical feature that an RMS offers the hospitality industry is a Channel Manager—a specialized tool for hoteliers seeking tighter control over where and how inventory is distributed. Essentially, the tool allows channel managers to control where the inventory flows. While most RMS solutions are inclusive of an integrated channel manager, others offer it as an add-on component. In fact, some RMS solution providers offer a channel manager as a light-touch software that isn’t part of an RMS platform. Organizations can also shop for a third-party channel manager and use it in conjunction with a CRS and a rate shopper.
Businesses are seeking a robust RMS solution that is easy-to-use, offers stress-free connectivity to their CRS, and boasts the capability to update the content of individual room types across channels. The ideal RMS solution should also include allocation management to control availability on each channel, GDS/metasearch connectivity, and a reporting tool that provides visibility into booking trends and channel profitability.
In a market hoarded with promising revenue management solution providers, businesses must identify an ally that can fit hand-and-glove with their respective business processes. To aid them on this mission, our illustrious selection panel—comprising CEOs, CIOs, VCs, industry analysts and the editorial board of CFO Tech Outlook—has narrowed down the top ten revenue management solution providers that exhibit competence in delivering competent solutions.
We present to you CFO Tech Outlook’s “Top 10 Revenue Management Solution Providers - 2019”