- 26 Nov 2020
Why use Revenue Management Software? Explained
A revenue management system can help managers check, analyze, and devise revenue streams for a facility. Learn all about it in this detailed article.
We all know that revenues play a significant role in the hospitality industry. If a particular hotel or motel is not running and bringing revenues, it will shut down. So, it can be said that revenue management is a crucial component of running a particular establishment. Of course, it is not quite difficult to maintain a facility and the revenue stream associated with it. If anyone tries to do it manually, they may perform errors while calculating and managing the revenue.
This is not an ideal situation and can be avoided by making the right decision. What is that decision? To shift the entire operation to the digital world, and use a revenue management system (RMS). What is it? It is a tool that can be used solely for the purpose of revenue management. This software is used to gather data and analyze it to understand consumers’ behaviours and demands. This data can help managers make informed decisions and efficiently manage the property.
The RMS tool should have the following features:
- Forecasts and their management
- Channel management
- Visualization of data
This is the main reason for using this software package, and you will see why in a bit. By studying the data collected from the particular establishment, this tool can accurately predict how the revenue stream of a particular establishment will be affected. Which data will be studied by this tool?
- How has the facility performed in the past? Is it satisfactory, or is there anything to improve?
- Current performance data
- Events (past and current)
- How many people have booked the facility?
- Pricing rates (of both the building and its competitors)
All these data may vary, so the tool must be checked regularly. The overall analysis may change depending on the time of year. It is impossible for someone to keep track of all these real-time changes, so let the software do the job.
Pricing is an essential concept in the hospitality industry, as the success of a building will depend on it. If anyone charges too much, people will deter from booking a room in it. On the other hand, if the charge is too low, people will not review it as something trustworthy and praiseworthy. The experts of the software development company in Kolkata know this, and would always include this factor into the tool.
Using this tool, the owner or manager can make efficient decisions regarding the pricing structure. The tool usually makes some recommendations, and the owner has to choose one from it. The tool considers these factors while calculating the price:
- Number of individual and group bookings
- How many corporate events were held within the facility?
- Special offers (luxury bookings)
After going through all this data, the software will provide an idea about the ideal pricing structure. However, it should be noted that this will change, and the facility should adapt accordingly.
While running a property, the business owner has to use several software to manage it effectively. For example, a hotel manager will use a hotel management software, vehicle management software (if needed), for this purpose. Aside from that, he might have to use other software, such as accounting tools, etc., to have complete control over the revenue stream.
An RMS should be compatible with all of that (third-party software). This is a crucial point, and it is followed by the experts of the app development company.
4. Management of channels
Facilities belonging to the hospitality industry need to be affiliated with different channels. This can be several OTAs (online travel agencies) to reach several people and encourage them to come to check out a particular building or location. If an owner can manage these channels effectively, it will result in both direct and indirect revenue for the building. Using this tool, a manager can decide how many rooms will be distributed via these platforms or otherwise.
How would anyone understand and analyze the performance of a hotel or any other building? Of course, by going through the performance and revenue reports. If you want to have detailed and accurate reports for your establishment, you need to have an RMS. These documents will contain KPI’s (Key Performance Indicators) that can provide a detailed analysis to provide better insights.
This tool can provide these reports in pdf, and other formats, that are easy to download and use. Also, people can export these reports, as needed, as well as share them with others.
6. Visualization of data
This tool can be used to visualize data and share it across different departments. Some people prefer charts and infographics over plain mundane text and images. This tool can allow people to use these graphics to explain the topics and provide meaningful insights into the building’s performance.
This RMS tool can help a manager analyze the performance of the hotel and make the right decisions. There are multiple reasons for using this tool, and let’s have a quick look at those points.
- Using an RMS will help businesses increase a facility’s profits and revenues. This tool will send automatic updates so that the concerned person does not miss any detail.
- Better forecasting that will result in better results
- Improve the overall work efficiency of a business, and eliminate the rate of human labours
- Decrease the operational cost to a significant extent
These are the reasons for using this RMS (Revenue Management System) for a particular business. If you want to use this software, you need to contact Swadesh Softwares. The company has developed a long list of (ERP or Enterprise Resource Planning) software, CRM (Customer Relationship Management), etc.
Aside from apps and software, the company has experience in the department of website development. So, people will get the full IT (Information Technology) package here. The portfolio is quite diverse, and this cannot be said about every company. The experts are aware of the latest technologies, and will not hesitate to use them accordingly.
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