Automated Hotel Revenue 
Management Software

Revenue management strategies for keeping your capacity managed

Capacity will always be a role in any revenue management system approach, whether you're thinking about a hotel, a restaurant, or a stadium. A set number of units available to sell within a certain time period is referred to as capacity.

The number of rooms available to reserve at a hotel on any particular night is known as capacity and is an important measure for hotel revenue management solutions. If a meeting room can be divided into smaller rooms or the layout of tables and chairs can be changed, the meeting space may have more flexible capacity limits.

Variable costs are what we handle in the best form

There are two types of operating expenses: fixed and variable costs that help in handling revenue management for hotels.

• Fixed costs in a hotel, such as an employee pay, building rent, and property taxes, remain constant regardless of the number of rooms filled and are often managed by property management software in hotel.
• Variable costs, or marginal expenses, change depending on the number of rooms occupied. These fees include the housekeeping salary for cleaning the room, in-room amenity replenishment, laundry expenses, and more. One of the basic principles of revenue management for hotel is understanding that the price of the room should always be more than variable costs but beyond that it can change according to circumstances.
• Hotels often have low variable costs, which means the cost of filling a room is substantially lower than the fixed expenses, allowing hotel revenue managers to modify rates more freely through their hotel revenue management systems.
• You should know the variable cost of a room at your hotel as a hotel revenue manager so you can adjust rates properly. An RMS software can help optimise your revenues under these constraints.

Handling to the perishable inventory made easy

Apart from fixed and variable costs, a revenue management software also considers a third constraint - the perishable nature of your inventory.

Perishable inventory refers to inventory that is only sellable until it reaches its "expiration date," beyond which it has no value. In the hotel sector and with regard to revenue management strategies, this means that a reservation for September 1st night has only value until September 1st; after September 2nd, you won't be able to sell the room night.

Although it may be tempting to assume that you want to sell every room night before check-in, this does not imply that you want to take reservations at any price. Your price must cover at least variable costs and hotel revenue management software understands this.

A smart hotel revenue management software balances the number of rooms sold per night (occupancy rate) with the price. This equilibrium is determined by the hotel's overall priorities: is occupancy or profitability more important? This is a crucial consideration as a revenue management company expecting an increased demand in near future will want to keep some rooms vacant.

To conclude, four of the chief factors for building a strategy for a revenue management system are fixed costs, variable costs, perishable inventory and expected future demand. An RMS software optimises the revenue under the opposing pull of these factors. However, not all revenue management software is the same and you must go for the best - that's where Aiosell.

Aiosell helps you in revenue management strategies so that you can handle the management in the best manner through our RMS software. Our state-of-the-art hotel revenue management software has already helped our businesses optimise their revenue. So, choose us as your revenue management company to increase the revenue of your business.