The strategic level of revenue management is the foundation of the entire strategy and concerns two fundamental aspects: the demand segmentation and the rate partition among those segments. This type of activity is carried out every six months or at longer intervals.
Revenue Management System – RMS
Software belonging to the group of the Decision Support Systems, which are aimed at profit maximization through the analysis of internal and external factors concerning rates, availability and restrictions.
The RMSs are Revenue management tools created to suggest rates and in some cases automatically modify them according to market conditions.
They are based on the hotel’s historical data and complex algorithms, and are often linked to a Rate Watcher in order to monitor competitors.