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Integrations and KPIs To Consider When Purchasing An RMS

Considering adopting a revenue management system (RMS) for your hotel business? It’s essential to do your research and make sure you get the knowledge you need so that you know you’re selecting the right revenue management solution for you. 

Here are some pointers to help you make the right choice, including the integrations your vendor should have and the KPIs you should look for. 

This blog is an extract from the Hotel Tech Report RMS Buyer’s Guide, sponsored by Duetto. Download your FREE copy of this report here: The Ultimate Guide to Revenue Management Systems

Critical Integrations

Without the right integrations even the best product can add complexity and cost. Make sure any vendor you consider has the integrations you need to set your team up for success.

Property Management System (PMS). A strong two-way integration with the Property Management Systems allows Duetto to pull historical information on rates and revenue, analyze the data and then return an accurate matrix of pricing recommendations for each segment and room type.

Central Reservations (CRS). A strong connection between the RMS and the CRS helps hoteliers avoid failed updates, lost reservations and bad reports when data and files are not transferred accurately between the two systems.

Customer Relationship Management (CRM). An RMS-CRM connection is critical when hoteliers want to price based on a guest’s value to your property. Without this connection, hotels cannot price based on loyalty or past purchase behavior.

Booking Engine. Without a connection between the RMS and the booking engine, the right recommended rates cannot be pushed to the guest at the time of booking.

What success metrics (KPIs) should you focus on?

RevPAR - Revenue Per Available Room. Revenue management software is designed to find your hotel’s optimal business mix, balancing occupancy and ADR to ultimately drive revenue per available room.

Profit. More importantly, a modern revenue management system will place an emphasis on net revenue per available room, or RevPAR after operating costs like labor and acquisition costs are deducted. It’s critically important for hoteliers to focus on bottom line profitability (gross operating profit per available room) as well as top line revenue.

RevPAR index. Perhaps the most important metric, RevPAR Index measures a hotel’s revenue versus its defined competitors in the market. This metric is sometimes also referred to as the Revenue Generation Index (RGI). If every hotel in the market sees revenue increases, RevPAR Index will show a hotel how its revenue has changed in comparison with the comp set. Duetto users on average see year- over-year RevPAR Index growth of 6.5%.

Naturally, we think Duetto is the best RMS on the market. And we’re not the only ones! We were voted the #1 revenue management system (RMS) in the 2022 HotelTechAwards, a user-based awards system that rewards based on customer feedback, integration compatibility, organizational health, partner network strength, and customer support quality. 

Find out more about selecting your next RMS in HotelTechReport’s The Ultimate Guide to Revenue Management Systems. Download for free today. 

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Duetto Content Team

The Duetto Content Team is made up of some of the brightest minds in the hospitality space. Through a mix of blogs, videos, whitepapers, social media posts, email campaigns and more, we focus on developing brand and product awareness, lead generation, engagement and more.

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