How to be more Efficient in your Revenue Management Function

More often than not, I come across hotels still relying on outdated and fragmented systems, yet expecting to outperform their competition. The result is much like a Penny Farthing trying to outpace a modern road bike — Bizarre! Sure, both vehicles can get you from A to B, but one is far more reliable, robust, and can get you to your destination much quicker.

In today’s technology-driven world, change happens daily. With the rise of artificial intelligence and data-driven decision-making, the landscape of revenue management is evolving faster than ever. For hoteliers, this presents both a challenge and an opportunity: adapt and thrive, or resist and fall behind.

Below are several ways to revise, adapt, and optimise your revenue management setup for long-term success.

1. Regularly Audit Your Tech Stack

Your systems are only as strong as their weakest link. Regularly reviewing your PMS, channel manager, RMS, and other connected tools ensures they’re functioning efficiently, integrating properly, and truly supporting your business goals.

2. Simplify and Consolidate Reporting

Data is invaluable, but too much complexity can be counterproductive. Streamline your reporting processes so your team can focus on insight, not administration. Clarity and usability are just as important as accuracy.

3. Stay Up to Date with Technological Advances

Technology evolves quickly — and in hospitality, it’s no different. What was cutting-edge two years ago may already be outdated. Keep an eye on new developments, especially in AI, automation, and predictive analytics, which are reshaping how we forecast and manage revenue.

4. Be Open to New Providers and Solutions

Loyalty to a vendor is admirable, but it should never hinder progress. Be open to exploring new providers or systems that better align with your current business needs. Sometimes, switching platforms can unlock significant efficiencies and insights.

5. Don’t Believe the Hype

Not every new solution is the right one. Carefully evaluate each piece of technology before investing time and money. Look beyond the marketing and assess real functionality, integration capabilities, and user experience.

6. Keep Your Tech Stack Simple, Robust, and Effective

An overly complicated tech environment can slow you down. Focus on systems that are reliable, scalable, and easy to use. A streamlined setup promotes faster decision-making and minimises errors.

7. Trust Your Gut

While data is a critical tool in modern revenue management, intuition still plays a valuable role. Your experience and understanding of your market can provide context that numbers alone may not capture.

8. Learn, Adapt, and Change

Continuous improvement should be part of your culture. Encourage your team to test, learn, and adapt quickly — the most successful hotels are those that evolve with confidence and curiosity.

9. Don’t Be Tight

Trying to save a few pennies in the short term by opting for cheaper systems can cost far more in the long run. A lack of essential features and functionality will eventually limit your performance and profitability.

Conclusion:

Remember, what works well for one hotel may not necessarily work for another. Each property has its own unique set of challenges and opportunities.

Untangling old and new technology can be complex and time-consuming, but it’s a crucial step toward efficiency and growth. If you’re looking to modernise your revenue management setup, don’t hesitate to reach out — we’re here to help guide you through the process.