How to Choose a Hotel Management System That’s Right for You

2025-09-28
In the highly competitive hotel market, revenue management is crucial to the successful operation of a hotel. An efficient Hotel Revenue Management System (RMS) can optimize room rate strategies, increase occupancy rates, boost revenue, and ultimately enhance profitability. However, with a plethora of systems available on the market—each with distinct features—selecting the right one requires consideration of multiple factors.

01. Hotel Scale and Type

Hotels of different scales and types have significantly varying system requirements.
  • Small independent hotels: Prioritize simplicity, ease of use, and cost-effectiveness. Due to limited staff, they often lack a dedicated revenue management team, so the system must be easily operable by the owner, general manager, or front desk staff.

  • Large chain hotels or resorts: Require robust centralized management capabilities, scalability, and support for personalized pricing strategies. For example:

    • A boutique hotel with 50 rooms focuses on accurately targeting customer segments to increase revenue per room.

    • A large business hotel with 500 rooms needs to manage revenue for multiple resources (e.g., guest rooms, meeting venues) and enable unified group-level management of strategies across all branches.

02. Analysis of Customer Source Channels

Understanding your primary customer source channels is key.
  • If your hotel mainly relies on OTA (Online Travel Agency) bookings: The system must enable seamless integration with major OTA platforms to ensure real-time synchronization of room rates and availability. It should also support the development of targeted marketing and pricing strategies.

  • If your hotel focuses on direct bookings or group contracts: The system should have powerful group booking management functions to facilitate setting group rates, booking policies, and contract management. For instance, hotels hosting business conference groups need the system to:

    • Intelligently calculate optimal quotes based on group size and length of stay.

    • Integrate with modules like catering and conference facility rental to maximize overall revenue.

03. Budget Considerations

Budget is a non-negotiable factor. You need to clarify your affordable cost range, including expenses for:
  • Purchase, implementation, training, maintenance, and upgrades.

Common Pricing Models

  • Fixed fees based on the number of rooms.

  • Percentage fees based on revenue or booking volume.

Payment Flexibility

Consider whether the payment method is flexible (e.g., paying by usage period or purchasing functional modules on demand).

Value vs. Price

Do not focus solely on price—balance cost with the system’s value. A high-performance system that significantly boosts revenue may have a higher upfront cost, but its long-term return on investment (ROI) is often more cost-effective.

04. Defining Business Goals

Business goals serve as a critical guide for system selection.
  • If the goal is to increase Average Daily Rate (ADR): The system needs strong dynamic pricing capabilities to adjust room rates in real time based on market demand, competitors’ prices, and other factors.

  • If the goal is to improve occupancy rates: The system should provide accurate market forecasting tools and promotional tools for different customer segments. For example, during off-peak seasons, the system can analyze target customer groups and develop preferential strategies (e.g., accommodation packages including attraction tickets).

05. Evaluating Core System Functions

1. Dynamic Pricing

As a core function, an excellent system should automatically adjust room rates based on real-time market demand signals:
  • Increase rates during high demand and lower them during low demand.

  • Use intelligent algorithms to synthesize factors like competitors’ prices, historical occupancy data, and holidays—ensuring rates are competitive while safeguarding profitability.

2. Channel Connectivity

Seamless connectivity with sales channels is essential. The system must integrate smoothly with mainstream OTAs, GDS (Global Distribution System), official websites, and social media to:
  • Ensure consistent and real-time updates of room rates and availability.

  • Avoid overbookings and missed bookings.

  • Facilitate unified management and analysis of sales data across channels.

3. Group Booking Management

Hotels with group business needs this function. The system should:
  • Allow easy setup of group rates, booking policies, and room allocation.

  • Intelligently calculate optimal quotes based on group size and check-in dates.

  • Include contract management features.

4. Forecasting Tools

Accurate market forecasting is the foundation of effective revenue strategies. The system should be equipped with advanced forecasting tools that use machine learning algorithms and market data to predict:
  • Future market demand.

  • Booking trends.

  • Room rate movements.

    These insights help hotels proactively optimize resource allocation, adjust prices, and plan marketing activities.

For example, Rulai PMS addresses the core pain points of hotel operations at their source. Consider trying Rulai PMS—a management expert that helps hotels "increase revenue and reduce operational worries."


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