Hotels Still Slow to Adopt Revenue Management Tech: New Skift Research

Revenue Management Systems (RMS) contribute to the sophistication of effectively and efficiently distributing room inventory. Many large hotel chains have invested in RMSs considerably over many decades to provide this sophistication to its hotel owners, offering one of the strongest draws towards brand affiliation. 

Smaller chains and independent hotels have often lacked sophisticated rate and channel analysis, but an influx of affordable revenue management systems boosted by cheaper cloud storage and advancements in artificial intelligence tech have opened up these tools to a much larger market. 

As revenue management evolves and starts to take on a more prevalent position within the hotel, it is expected that technology will start to play a bigger role. 

Today, however, the number of hotels which use revenue management systems is still limited. Skift Research analysis shows that only 28 percent of hotels utilize RMS tools, and when the limited free tools provided by Expedia are excluded from this, only 10% of hotels purchase advanced revenue management technology. 

Market Share Concentrated Around a Few Top Vendors

In our new report, Hotel Tech Benchmark: Revenue Management Systems 2021, we provide an overview of the penetration of RMS tools in the hotel space, estimating the total market size and revenue potential of the space, and offering an extensive list of top vendors. 

When looking at the top players in the RMS landscape, there are three players that really stand out for their size: Expedia Group as the largest vendor with its limited and free revenue management tool Rev+, IDeaS as the largest vendor with a full stack RMS product, and Marriott International as the largest hotel company with its proprietary OneYield product.

What You’ll Learn From This Report

• Total annual revenues for the RMS tech category
• Growth potential for the category, expressed in U.S. dollars
• Market shares for 31 RMS vendors, based on the amount of hotels and rooms they service
• Market share split by third party and hotel brand proprietary systems
• Breakdown of revenue streams for third-party vendors

This is the latest in a series of reports and data products that Skift Research puts out. The Hotel Tech Benchmark is a data product exclusively available to our Research subscribers, offering insights in market sizes, revenue streams, and vendor landscapes for the major hotel tech categories.. 

After you subscribe to Skift Research you will gain access to our entire vault of reports conducted on topics ranging from technology to marketing strategy to deep dives on key travel brands. You will also be able to access our proprietary Skift Recovery Index and Skift Health Score data and reports.