“For a revenue manager, it would be stating the obvious to say that the first essential tool is an RMS. But, clearly, the PMS comes before the RMS. The PMS is at the core of all hotel operations, and a good hotel PMS must have the functionalities to gather all the relevant data to successfully shape a revenue management strategy.
Any RMS processes data, but without a good PMS that can store, process, and communicate said data correctly, the RMS cannot be expected to perform at its best.
Clearly, a high-quality data output depends on high-quality data input, so the PMS must have the capabilities to record data for each individual booking in a segmented and accurate manner, and staff must be trained and instructed to perform data input operations in the best way possible so that the data output can be useful for the revenue management strategy.
A good PMS should ideally be able to communicate with an RMS through an open API system, and this is easier if the PMS is cloud-based. In any case, a high-quality PMS should provide all the essential data so that the RMS can process and cross-reference it, thus supporting the decision-making process on sales and pricing strategy.
Additionally, the revenue manager’s essential toolkit should certainly include a good hotel channel manager and booking engine. The channel manager enables synchronized price and inventory updates across all connected sales channels in a single operation (thus avoiding overbooking risks), which simplifies the task of updating rates and availability on a daily basis and reduces the margin of error.
The booking engine is the terminal to purchase or book rooms, with instant confirmation, directly through the property’s website and is therefore a fundamental tool for those hotels who want the option of selling via their own website, thus reducing the burden of OTA commissions.
The channel manager and booking engine should also facilitate two-way communication with the PMS.
Last but not least, it is essential to have a good CRM to build a hotel-owned database of direct customers and ensure their retention through targeted marketing operations supporting the revenue management strategy.”