The rise and stumble... and rise again of the RMS
The rise and stumble... and rise again of the RMS — By Michael McCartan

McCartan.tech · 21 May

At the start of the COVID19 crisis there were calls from many respected quarters for hotels not to follow the pricing recommendations suggested by the revenue management systems (RMS) for fear that this would lead to a race to the bottom. The assumption being that the revenue management systems would rapidly drop rates to stimulate bookings. Whether this advice was appropriate or mis-guided is unknown because the severity and the swiftness of the lockdown meant that any demand, short or long term, evaporated in a matter of days and any price reductions had zero impact on optimising demand. Simply put no one was booking, irrespective of price, and this remains the case today with many hotels choosing to temporarily close until travel restrictions are lifted and consumer confidence returns.