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Choosing the Right RMS Partner: Avoiding Common Pitfalls to Ensure Long-Term Value
By Jurgen Ortelee - Exclusive for 4Hoteliers.com
Wednesday, 15th October 2025
 

Exclusive Feature: For hoteliers based in the Asia-Pacific region, investing in a revenue management platform is a major decision that extends far beyond the adoption of new technology.

It is a strategic investment that has the power to shape ongoing profitability, operational efficiency and sustained business success.

With guest behaviours constantly evolving, distribution channels becoming more complex and data sets growing by the day, the ability to make accurate and profitable decisions without the help of technology has never been harder.

With the right revenue platform and partner, measurable revenue growth can be achieved. Additionally, choosing the right partner can help embed a culture of commercial excellence while positioning hotels to manage market volatility. However, the wrong choice can lead to wasted investment, frustrated teams and missed opportunities.

A careful evaluation of both the technology itself and the partner behind it, can ensure any investment in a revenue management platform delivers immediate benefits and help drive longer term strategic value.

Why Your Revenue Management Platform Matters More Than Ever

The benefits of revenue management technology are increasingly difficult to ignore. Data from a recent survey of hotel investors by IDeaS shows that 44% find growing top-line revenues through better revenue management to be the fastest route for increasing net operating income; besting even cost-cutting (38%).

For 25% of respondents a double-digit net operating income increase of 10% or more was achieved. In a competitive hospitality landscape, these kinds of gains can have an immediate impact on day-to-day cash flow and long-term financial health.

Advanced revenue management technology leverages AI and prescriptive analytics to evaluate market demand projections, competitor pricing and guest behaviour in real time, all leading to data driven decision-making This allows for precise pricing strategies that maximise revenue for every room sold. Instead of guessing or relying on manual calculations, revenue and profitability can be maximised using intelligent revenue management technology.

In addition, revenue managers often save considerable time each month by eliminating manual processes like rate parity checks, updating inventory across booking channels and running time-consuming reports. By automating these tasks with technology time can be freed up to focus on higher-value activities such as collaborating on strategic marketing campaigns and optimising business mix.

The Risks of Choosing the Wrong Partner

Selecting the wrong technology provider is a mistake that can have long-lasting consequences. Hotels that adopt solutions without adequate evaluation often discover limitations after implementation. Some systems prove inflexible and bound by limited, confusing, and hard to maintain rules, while others are unable to adapt to complex operations or multi-property environments.

Technology may appear user-friendly at first but lack the sophistication required to forecast accurately in volatile demand conditions. In many cases, inadequate training or weak support leaves staff underutilising the system, leading to disappointment and low (or no) return on investment.

A revenue management platform is not just another tool in the tech stack; it's a strategic asset that directly impacts profitability and long-term value thanks to optimisation decision recommendations driven by accurate demand forecasting. It is the foundation of a hotel’s commercial strategy and requires a partner committed to aligning the technology with the property’s goals, market dynamics, and day to day operations. Without this level of partnership, you risk ending up with a tool that looks appealing but fails to deliver sustainable results.

Tips for Choosing a Revenue Management Partner

When evaluating revenue management technology, it is essential to recognise the difference between systems that simply process rates and those that set the industry standard. Best-in-class solutions are built on advanced analytics, using machine learning, forecasting algorithms and mathematical AI to operate at a highly granular level.

This enables accurate predictions by room type, rate code, or market segment; ensuring pricing and inventory outputs are accurate even in changing markets. Lesser solutions may provide surface-level dashboards or reactive reporting, but without genuine forecasting sophistication they struggle to anticipate change dynamically

Another key consideration for top tier revenue management technology is how well it handles complexity. Cluster environments, layered rate structures, and diverse business segments require systems capable of managing nuanced tactical considerations such as overbooking, business mix optimisation and corporate account yield.

Strong platforms excel in these situations, enabling hoteliers to identify and take advantage of incremental revenue opportunities across the portfolio. Lesser systems can perform adequately in limited contexts, but their rules-based approach often falls short in accounting for big-picture complexities and knowing how to incrementally capitalise in a multi-faceted environment.

The strength of the vendor and client relationship is critically important. Good technology provides functionality, whereas great technology comes with a partner who invests in training, continuous optimisation and long-term support as well as frequent upgrades to technology.

A true partner will ensure hotel staff not only understand the technology on day one but continue to build their revenue culture as the business evolves. Simplicity from a user interface perspective is something all providers strive for; but “simple to use” without the necessary depth of capabilities can sink a hotel’s strategy fast. The best partner combines powerful solutions with proactive support and deep hospitality expertise.

Measuring ROI and Long-Term Value

For an increasing number of hotel owners and investors, a revenue management platform is proving to be a critical tool, not just for pricing rooms, but for improving operational efficiency and growing profits.

In the aforementioned survey of hotel investors, 83% of hoteliers using revenue management technology described the return on investment (ROI) as “high” (62%) or “very high” (21%). These results underscore the clear financial impact, with operators seeing measurable gains in cash flow and long-term asset value across their portfolio.

The long-term value of top-quality technology is not confined to immediate revenue uplift. Its true potential lies in reshaping the commercial culture of the hotel, embedding more disciplined decision-making and enabling leadership teams to balance immediate performance with longer term profitability.

This cultural shift is what ultimately separates hotels that simply adopt new technology from those that leverage it as a foundation for enduring success.

Why the Right Partner Makes All the Difference

Choosing the right partner is one of the most significant commercial decisions a business can make. The right system backed by a strong partner, can set to long-term revenue growth and sustained success.

The wrong choice, however, can leave a hotel struggling to meet its revenue goals for years. To make the right decision, hoteliers must evaluate providers against genuine benchmarks of best practice, such as accurate forecasts you can trust, the ability to manage complexity, seamless integration and continuous support.

A partner that delivers on these fronts will not only enhance revenue performance today but also help build a strong commercial foundation for the future.

Jurgen Ortelee is the Managing Director – APAC, IDeaS. For more information on how your hotels can benefit from working with an industry leading revenue management partner, please visit: ideas.com

This is strictly a 4Hoteliers.com exclusive feature. Reproduction in any shape or form without explicit permissions is not permitted.

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