March 26, 2020

Hospitality Tips you may not be Aware of: Using PMS to Improve Revenue Management

A hotel property management system is a software that helps hotels efficiently organize, schedule and manage their daily operations. It enables hotels, both small, independent, and groups to handle front office workflow including booking, guest check-in & checkout, assigning rooms to guests, delegating housekeeping tasks and billing, etc. Also referred to as Hotel Software and working as the nerve center of hotel operations, it ensures the seamless flow of interdepartmental information. This helps hotel staff to better coordinate the operational functions across all the departments. In simple words, a hotel PMS automates and streamlines operations, saves man-hours, and helps serve guests better.

What is Revenue Management?

Revenue management is a key concept within the hospitality industry because hotels must contend with fixed costs, a perishable inventory, and varying levels of demand. Typically, revenue management involves using analytics and available data in order to predict demand, make strategic pricing decisions and maximize revenue.

For hotel owners, revenue management can be neatly summarized as the following: Selling the right room, to the right customer, at the right time, for the right price, via the right distribution channel, with the best cost efficiency.

Ultimately, revenue management allows those operating in hotel management to make more informed decisions, backed up by evidence and data, in order to optimize business practices. With a robust revenue management strategy in place, owners can bring more money in, ensure their costs are covered, and, ultimately, maximize profit.


When properly executed, hotel revenue management can be used to deliver very substantial increases to top-line revenue growth and profitability. Here are the ways Pms can increase revenue


Hotels can get the right pricing for maximum profitability by observing guest trends and demand. They can earn more revenue from the same inventory set. Prediction of high and low periods is possible by studying and evaluating variables such as season, occupancy levels in an area, guest type, competitor pricing, room features, and amenities that affect pricing. With this, a hotel can safely increase prices during periods of high occupancy and decrease them during periods of lower occupancy. This type of dynamic pricing can be used to determine rates based on the current and historic demand.


Integration with a hospitality-focused Customer Relationship Management system can store and let you access guest information across every touchpoint a guest uses. This enables you to serve your guest as an individual, engaging them directly with information pertinent to them. This level of personalization can also help fill in times of soft demand with suggestive selling of dynamic packages, add-on services, and special offers during the low season. Hotels can personalize offers via email and even run push notification campaigns directly to a guest’s mobile device.


The best bookings are direct bookings! Direct bookings come with low acquisition costs (no commission fees) and give ownership and control of the booking to the hotel instead of a third party, allowing hotels the profitable opportunity to establish a direct relationship with guests right from the start. With a cloud PMS, hotels can sell rooms directly through their own website via an online booking engine. Fully integrated with the PMS, the online booking engine always reflects live rates and availability, and reservations coming through the property’s website are automatically sent to the PMS.

Final thoughts

With the right technology tools in place, hoteliers have the opportunity to streamline operations, increase productivity, increase revenue for hotels, engage with guests in real-time and provide a personalized experience all resulting in increased customer satisfaction and higher profitability.

Horeca Cloud  PMS provides hotel revenue managers with the right technologies designed for optimizing hotel operations and increasing revenue.