How Are Revenue Management Systems Effecting RevPAC?

I was reading a report from Chris Cunane with Aberdeen Research and thought the data regarding the impact that revenue management systems have had on RevPAC stats was worth sharing.

“Even as the economy continues its’ slow recovery, the proper use of revenue management applications can reduce the risk for decreased sales, room occupancy, and profitability. Revenue management applications are used to set sales rates and restrictions to maximize the return for room occupancy, food and beverage, and all other revenue generating touch-points.

Hospitality organizations must combine demand sensing with inventory visibility to maintain a proper balance of varied priced inventory, allowing for discounts in overstock situations and higher prices for high demand times. According to Aberdeen’s Next Generation Hospitality benchmark report, those organizations possessing a combination of demand sensing and inventory visibility capabilities have seen a 2% increase in revenue per available customer (RevPAC) compared to a 5% decrease for those organizations without these capabilities.”

How are you utilizing intuitive technology solutions to maximize your rate of return and customer experience? Do you think it is possible to leverage technology to increase revenue while you decrease costs?

Jim Thomas handles business development focused on the hospitality and leisure industries for RedPriairie.   You can reach Jim at

4 thoughts on “How Are Revenue Management Systems Effecting RevPAC?

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