Since its inception in the late 90s and early 2000s, pricing and revenue management has become a key function in hospitality. In the early days of revenue management, revenue managers focused on inventory optimization, opening and closing pre-set rates according to demand to ensure the best possible utilization of the limited capacity of hotel rooms. Today, a dynamic distribution marketplace allows consumers review all the prices in the market, making pricing a critical focus for revenue management.
Evolutions in the digital space, and related technical and analytics advancements, continue to drive revenue management practices and systems forward. It is clear that the future of pricing in hospitality is data, automation, and analytics. The only question is how to best automate to align with your market and strategy. In this paper we explore the current state of revenue management and the approaches used by revenue management systems (RMS) to support hotel revenue management. We also explore new trends in revenue management systems and analytics that are shaping the future today. Finally, recognizing that revenue management technology is not a “one size fits all” product, we make recommendations regarding RMS approaches and trends that hoteliers should consider, based on their specific market and strategy.