Whether it’s a peak season rush or a special event in town, there’s nothing like the buzz of a fully booked hotel. And even better, high demand translates into high revenue…or at least, it should. That said, if your pricing stays static but bookings go up, you’re leaving money on the table.
That’s where hotel revenue management software (RMS) comes in. An RMS forecasts demand, adjusts pricing and drives profitability, no manual spreadsheets required. In this guide, we’ll explore how to find the RMS features that align with your goals and cover ways to choose the best hotel revenue management software for your needs.
Key Takeaways
Hotel revenue management software (RMS) maximizes hotel revenue by dynamically adjusting room rates based on real-time market and demand data. It uses algorithms and analytics to forecast demand and monitor market conditions. RMS use the data to recommend optimal pricing strategies that get you more revenue for each booking.
Rather than relying on static rates or manual updates, revenue management tools automate pricing decisions across all distribution channels, helping hotels capture more revenue during high-demand periods and avoid underselling during slower times. This ensures no profits are left on the table, and guests are paying the fair market price each time they book.
No two hotels face the same revenue challenges. A 20-room boutique property and a 400-room resort operate on entirely different scales, of course. But even hotels of the same size and type can have vastly different needs depending on their location, amenities and seasonal patterns.
That’s why revenue management systems aren’t one-size-fits-all. To find the right fit, start with a quick self-assessment. Ask yourself:
Once you’ve defined your needs, it’s easier to cut through the clutter to figure out what’s right for you. This foundation helps you quickly rule out the tools that don’t align and zero in on the ones that might.
While every hotel is different, some features are must-haves in any RMS. These essentials lay the groundwork for a profitable pricing strategy and make sure your investment pays off. Here’s what to look for.
What it is: Advanced demand forecasting uses historical data, booking trends and market conditions to project future demand.
Why it matters: It allows hotels to price rooms dynamically, avoid overbooking or underselling and increase revenue for each booking.
What to look for: An RMS solution that automatically adjusts pricing based on demand shifts, local events and historical data.
What it is: An integration that connects your RMS to online travel agencies (OTAs) and your direct booking engine.
Why it matters: This integration ensures consistency in pricing and inventory across channels. With real-time, two-way integrations, you’ll prevent double-booking and misrepresented rates.
What to look for: Direct API connections with major OTAs and your hotel’s booking engine.
What it is: Dashboards that show you real-time data regarding occupancy, pricing, revenue and market conditions.
Why it matters: Data-driven insights let you make smarter pricing and marketing decisions.
What to look for: Customizable dashboards and visual reports that track performance in the way that’s most effective for your property.
What it is: An integrated Guest Management System (GMS) that automates guest-facing tasks. This can include check-in, upselling and checkout.
Why it matters: A GMS reduces administrative workload for your hotel staff, increases ancillary revenue and enhances the guest experience.
What to look for: End-to-end automation that touches every part of the guest journey for increased digitization and efficiency.
What it is: A tool that allows flexible pricing and availability controls for group bookings related to events and business travel.
Why it matters: Improves revenue planning for hotels that offer discounted room blocks for group bookings.
What to look for: Smart solutions that make hotel booking for groups easy for potential guests and make pricing adjustments easy for your hotel.
What it is: Software that dynamically suggests upgrades and amenities at the right time in the guest journey.
Why it matters: Increases revenue from hotel upsells without adding additional overhead or requiring staff to manually offer add-ons.
What to look for: Tools that let you offer add-ons as part of the booking and check-in flow and automate in-stay upsell offers with AI.
What it is: Automated guest communications that answer common questions and manage guest requests instantly.
Why it matters: Automated messaging frees up your staff’s time and improves guest satisfaction.
What to look for: Seamless AI guest messaging that supports multiple languages, integrates with your existing systems and knows when to hand off conversations for human support.
What it is: Security tools that offer solutions for digital authorizations and online payments to help reduce fraud risk.
Why it matters: Preventing fraud before it starts protects your revenue and saves hours spent on chargeback disputes.
What to look for: PCI-compliant digital solutions with automated verification workflows.
The benefits of revenue management go beyond saving time. They deliver measurable return on investment that impacts your bottom line. Here’s how the right RMS drives real results for your hotel profits.
Built-in pricing strategies in modern RMS platforms take the guesswork out of rate setting. By dynamically adjusting prices based on demand, seasonality and competitor rates, hotels boost their Revenue per Available Room (RevPAR) and Average Daily Rate (ADR). This means maximizing revenue, even with the same number of bookings.
Real-time market insights and accurate forecasting help you stay ahead of demand shifts. When you fine-tune your rate adjustments based on dynamic data, you fill more rooms, reduce unsold inventory and lift occupancy. It’s not about discounting your way to the bottom—instead, you price low to drive demand and price high to capitalize on it.
Manually updating rates across channels eats up valuable time and leaves room for costly mistakes. An RMS automates these tasks, syncing pricing in real time to eliminate errors and free up your team to focus on higher-impact work.
RMS platforms surface real-time data through intuitive dashboards, so you can spot trends and adjust fast. Instead of relying on gut instinct or outdated reports, you make pricing and marketing decisions based on what’s actually happening in your market when it’s happening. This means a smarter strategy and stronger revenue performance.
If you’re in a competitive market, moving fast matters. The right RMS gives your hotel an edge by reacting immediately to last-minute cancellations, local events or demand spikes. That means smarter pricing, fewer missed opportunities and more heads in beds—at an optimal rate, of course.
Dynamic pricing ensures you maximize revenue on every booking. With rates optimized in real time, your hotel earns more per room. That’s a simple method for boosting hotel profit margins and building long-term financial strength.
Now you know what to look for, so it’s time to find the best revenue management software for your property. With your goals in focus, follow these steps to make a smart selection:
Start by defining your budget. This will include upfront costs, but also needs to factor in licensing fees and ongoing support. While staying within budget matters, don’t overlook the long-term ROI impact. A more robust system may cost more but deliver far greater revenue gains over time.
Schedule demos with your top choices and come prepared. Use your earlier self-assessment to guide the conversation. Ask how each system handles your property’s unique challenges, from group pricing to PMS integration to upsell automation. The more specific your questions, the clearer the right fit will become.
Dig into reviews from hotels that look like yours (or at least as you can get!). Try to find reviews from properties of the same size, in the same market, facing the same challenges. Pay attention to consistent pros and cons, and flag any feedback related to the issues you're trying to solve. Real-world insights can reveal what sales demos don’t.
Even the best RMS won’t deliver results if your team can’t use it. Ask about implementation timelines, staff training and how long it typically takes to go live. A smooth rollout makes all the difference.
Your hotel’s revenue management solutions should be able to scale with your property. Look for a vendor that offers regular updates, responsive support and a customer success team that’s adept at offering assistance. The right partner will provide thorough training, evolve with your needs and stay ahead of industry shifts.
Now that you’re armed with information on how to choose the best revenue management software for hotels, how do you select the right vendor? Let’s explore options below:
Atomize is a revenue management platform that automates pricing to grow profit margins. Its main focus is on hoteliers in fast-moving markets and those who want to manage revenue on the go. It adapts quickly to demand shifts and prioritizes a mobile-friendly interface.
Duetto is a cloud-based hotel revenue management software that helps hotels forecast demand, set smarter prices and track performance in real time. With multiple integrations with hotel systems, Duetto streamlines data flow to reduce the manual effort involved in pricing.
FLYR is an AI-powered revenue management software built for both hospitality and aviation. It delivers real-time data to inform smarter pricing strategies and maximize profitability. With strong integrations across hotel tech stacks, FLYR helps teams move toward their goals of revenue management.
IDeaS uses advanced analytics and machine learning to power its revenue management tools. The platform forecasts demand, analyzes market data and recommends pricing in real time. It also offers PMS integrations so your rates and inventory are always aligned.
Lighthouse (formerly OTA Insight) offers revenue management solutions that turn real-time market data into actionable insights. With demand heat maps and intel on stay patterns, flights and hotel searches, Lighthouse helps hotels build pricing strategies that align with current market demand.
Luxe Pricing combines revenue management solutions with optional consulting for hotels. Powered by AI, its platform analyzes live data and booking trends to deliver real-time, dynamic pricing recommendations.
RoomPriceGenie is a revenue management software built for independent hotels. It automates rate adjustments to boost revenue while saving time. Easy to use and quick to integrate with most PMS platforms, RoomPriceGenie delivers smart pricing without the complexity.
Choosing the right revenue management system is only the beginning. To increase total revenue and drive repeat bookings, the guest experience needs to shine from check-in to checkout. Canary integrates seamlessly with top RMS platforms to help you deliver standout service while maximizing profit. Hotels using Canary have seen:
Want to see it in action? Book a demo today.
The best RMS isn’t the one with the most features—it’s the one that fits your hotel’s goals, addresses your revenue challenges and makes life easier for your team. With the right system in place, you’ll drive more revenue, streamline operations and stay ahead of the competition.
The primary goal of revenue management solutions is to maximize the profitability of your hotel. This means selling the right room to the right guest at the right time for the right price—and through the right channel. Key objectives include:
When done right, revenue management strikes the perfect balance between volume and rate, ensuring each room rate fetches the highest profit margins possible.
Hotels today rely on a suite of tools to reach their goals of revenue management, whatever they may be. These include:
These tools give revenue teams the insights needed to make fast, informed pricing decisions in a dynamic market. And for a more dynamic solution, hotels use revenue management systems to automate these processes.
A well-executed revenue management strategy delivers measurable advantages that help your hotel’s bottom line. These include:
Overall, revenue management solutions aren't just about pricing. It's about making your property more profitable, adding efficiency to your operations and giving you the competitive edge required to stay ahead.
A Revenue Management System (RMS) is a specialized software solution that automates core functions like pricing, forecasting and inventory management. In hospitality, an RMS plays a crucial role in optimizing room revenue.
These systems use machine learning and real-time data to analyze demand trends, booking pace and competitor pricing. The output? Smarter rate decisions, fewer manual tasks and better profitability. Many RMS platforms also integrate with property management systems (PMS), channel managers and booking engines for seamless operations.
For hoteliers looking to compete in fast-moving markets, revenue management tools aren’t optional. It’s essential to make the key decisions that help your bottom line, improve your profit margins and create intelligent pricing strategies for your hotel.
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