So, you’re thinking about upgrading to a more effective revenue management system (RMS) for your hospitality organization, but you have some doubts.
Maybe you’re thinking:
- It’s too costly to install a different RM
- Learning a new system will take too much of my staff’s bandwidth
- My new system will take too long to learn how to price effectively
- It’s easier to stick with an RMS, I know. It’s “good enough.”
However well-founded those concerns are, they’re based on common fears and myths. To help you avoid falling victim to those fears, we outline the top four myths to avoid when discerning whether to switch to a different RM.
Unraveling the 4 Myths of Considering a New Hospitality RMS
Below you will find the 4 Myths of considering a new hospitality revenue management system.
Myth #1: It’s too costly to install a new RMS
While there are costs to adopting a new RMS, there are also costs to sticking with the status quo.
If your current system causes you to miss out on gains in market share because it can’t produce accurate room-level pricing, then that might cost your business much more than switching to a new RM.
If your current RMS needs help to manage accurately and price group business in a way that fully optimizes revenue, you could also be losing money in the long run.
Here’s a fact: Hotels with an RMS that prices by room type experience a revenue uplift of 5% compared to others that can’t price by room type.
Myth #2: Learning a new system will take too much time for my team
Many teams experience a slight decline in overall efficiency when switching to a new software solution. However, this decline is typically short-lived.
Here’s the truth: Even with limited staff, onboarding a new RMS has never been faster or easier…
Self-paced learning empowers employees to conduct onboarding when it makes sense for them and their schedules.
Meanwhile, analytics and automation handle the heavy lifting for system setup and configuration. And once your advanced RMS is up and running, efficiency and productivity accelerate.
When you compare your productivity while using an automated RMS to your productivity while using a rule-based pricing tool (or a spreadsheet), you’ll likely experience a massive boost in productivity from an automated system.
Myth #3: It will take too long for a new RMS to deliver accurate insights
When you hire a new employee, it takes a while for them to learn how your business operates. But when you implement an automated RMS that’s been implemented across thousands of properties, you get a system that’s ready to make an immediate difference.
The artificial intelligence in an RMS allows it to adjust as needed and continuously learn about the new property it’s installed in. Without oversight or programming, an automated RMS adjusts and applies pricing models that optimize the full potential of each revenue stream at the given location. And a truly automated system will constantly improve its algorithms as it goes along.
This continuous fine-tuning ensures that the predictive forecasting approach of the RMS best matches your property’s demand patterns so that forecasts and pricing align with changing market conditions.
Myth #4: It’s easier to stick with the system I know
Imagine if everyone kept using horse-drawn carriages instead of automobiles. It might’ve been easier to keep using that technology, but it wouldn’t have led to more convenience or opportunities for travel.
So, yes, it is easy to stay with your current RMS. Doing so doesn’t require extra work. But it might not lead to any additional profits or growth either. And in the long run, sticking with an RMS that requires rule programming and reprogramming might end up costing you more time than if you’d switched to an automated system earlier.
Think about this: Are you saving time if you’re constantly reprogramming rules? Or would you be better off with a system that operates independently from rules and supervision?
This is the Bottom Line
If you can switch to an RMS that produces insights without prompting and makes necessary price changes without oversight, you’ll save time in the long run. This is where the industry is moving in the same way that we moved on from horse and buggies.
Of course, you can remain with your current system. But you can also face the myths head-on and consider a system that will save your organization time and energy while boosting profits. Isn’t that a reality you’d rather live in? Take the first step today.
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