Why Economic Uncertainty is the Right Time to Modernize Your RMS
In the face of macro-economic uncertainty, one might question the rationale behind launching a new project. It's natural to wonder whether the timing is right or if the venture is bound to struggle. However, when we delve into the origins of our journey, we realize that external factors should not hinder us from pursuing opportunities and addressing pressing needs.
Let's rewind to 1984, a time when my fascination with Star Wars was at its peak and my father, Robert G. Cross, was working diligently as a lawyer for Delta Air Lines. Many of you are likely familiar with my dad, either through his influential book on revenue management or from working alongside him over the past four decades. Perhaps you recognize him as the recipient of HSMAI's Vanguard Award for Lifetime Achievement in Revenue Optimization. But in 1984, he was simply a dedicated father grappling with a challenging problem: how to prevent Delta from incurring substantial losses during the deregulation crisis. This led him to invent yield management, which has since evolved into the revenue management practice we hold in high regard today.
Fast forward to 2005, when my brother Zach and I managed to convince our father to come out of retirement. We saw tremendous untapped potential in revenue management to generate value and improve lives, inspiring us to co-found Revenue Analytics. Over more than a decade, we worked tirelessly to develop ultramodern revenue management systems for renowned brands such as Marriott, Hyatt and IHG.
However, by 2019, we noticed a significant shift in the landscape. The traditional "1-property DORM" model that legacy RMSs (both proprietary and off-the-shelf) catered to was on the verge of extinction. The few remaining properties adhering to these systems found themselves pulled in different directions, facing an array of challenges.
While the revenue management practice had undergone rapid evolution, the supporting systems had failed to keep pace. And while the year 2020 was undoubtedly not the most favorable time to introduce a new product, the challenges facing revenue teams were amplified, emphasizing the urgent need for a comprehensive solution. We firmly believed that hoteliers deserved access to modern technology capable of addressing their contemporary challenges.
Thus, N2Pricing™ RMS was born, offering a range of modern benefits tailored to the needs of revenue teams:
- Enhanced forecasting: N2Pricing incorporates unique innovations such as pick-best modeling, trendsetter analysis, and automatic detection of special events, boosting accuracy and automating crucial tasks.
- Streamlined “above-property” management workflows: Unlike its predecessors, N2Pricing is designed to facilitate the management of multiple properties, catering to cluster revenue managers and central revenue management teams.
- Profit optimization: While revenue is undoubtedly important, experienced owners know that profit takes precedence. Our algorithms prioritize profit optimization, working tirelessly throughout the day to maximize returns.
Launching an updated RMS system in the face of the biggest times of uncertainty taught us one thing: fear is not much help in starting new initiatives, and pursuing efficiency right now is always the right time. Today, we reap the rewards of investing our precious time and capital during those days, with over 2,900 hotels live on N2Pricing today.
Given the uncertain economic landscape today, wouldn’t it be prudent to remove the risks of lost revenue from failing to capturing the maximum profit from every potential transaction? In uncertain times, knowing that revenue opportunities won’t be missed should allow for greater focus on navigating other uncertainties. When facing uncertainty, be certain about what you want to achieve, and be ruthless in its pursuit.
I extend a warm invitation for you to witness the culmination of our years-long efforts. Explore N2Pricing and experience firsthand how this innovative RMS can empower revenue teams and drive success in the hospitality industry. Let's partner together in the face of uncertainty to advance the impact of revenue management and drive future profits!