REVENUE MANAGEMENT SOFTWARE

Whether you run a hotel, B&B, hostel, or other property type, revenue management can greatly contribute to your business's profitability. Large hotel chains have been utilizing revenue management tactics for decades, but revenue management is growing among smaller and independent properties as hotel technology advances and revenue management tools become more accessible and practical, even when the property doesn’t have the budget to hire a dedicated revenue manager. Revenue management also helps keep the prices for hotel rooms competitive in the market and helps hoteliers accurately report and track key metrics like ADR, RevPAR, TRevPAR, and GOPAR.

The main difference between yield management and revenue management in the hospitality industry is that yield management has a narrower focus and is generally regarded as the process of maximizing a hotel’s revenue through hotel pricing and inventory controls. Revenue management is a broader term that also encompasses market segmentation, forecasting, and more in-depth demand data analysis. An advanced revenue management strategy goes even further, factoring total revenue, costs, and profits into revenue decisions.

For hotel owners and operators who are new to hotel revenue management or have limited time, yield management is the place to focus efforts. For example, hoteliers can focus on building stronger revenue streams by using a revenue management tool and focusing on setting dynamic room prices that fluctuate based on market demand or occupancy rate, plus offering upsells. Once you master the basics, you can look at expanding your skillset.

A hotel reservation system is used to manage room inventory, rates, and bookings (for example, available rooms, room types, etc.). Also called a central reservations system (CRS), it may be housed within the hotel’s property management system (PMS) or may be standalone software connected to the PMS. The CRS acts as the central hub of the reservation ecosystem, which may also include a website booking engine, channel manager, and revenue management system. When integrated, these modules work together to help hotels manage room availability, distribution, reservations, and revenue.

A revenue management system will pull data from the CRS, such as room inventory availability and occupancy, to help set your ideal pricing. While the CRS and RMS are two separate systems, they work together and the RMS depends on data bases in the CRS.

In addition to PIE, our built-in revenue management solution, Cloudbeds has significantly expanded its revenue management offering through new partnerships with leading industry innovators. The partnerships allow customers to experience the depth of functionality from top RMS software systems, all integrated directly with the Cloudbeds platform.

Cloudbeds’ current RMS partner providers include: Atomize, PricePoint, PriceLabs, Beyond, FLYR, LifeHouse, TurboSuite and RoomPriceGenie, with the following partners coming soon: IDeaS, BEONx, and Duetto.