The evolution of revenue management has reshaped how pricing, inventory, and demand are strategically aligned to maximize profitability. Early hotel revenue management relied on manual forecasting and static pricing models, but with advancements in technology and the rise of online distribution channels, it has evolved into a sophisticated, data-driven practice. Today, revenue management systems (RMSs) use real-time analytics, dynamic pricing algorithms, and demand forecasting tools to ensure the right room is sold to the right guest at the right time and price, amplifying both occupancy and revenue potential in an increasingly competitive landscape.
David Woolenberg, CEO of Duetto, shared what customers have come to expect from a revenue and profit operating system. “People want to understand profitability,” he said. “They want to understand top line, and to the extent that we can provide the tools that enable them to make better decisions, I think that’s a huge opportunity. We see an opportunity to continue to build out the ecosystem of integrations, apply more intelligence in there. You’re starting to see the lines blur between departments in terms of how they think about their strategy. Ultimately, that’s a great opportunity for us, and [by] getting more people to use systems like a revenue management system, particularly like ours, we can empower a lot more than just the revenue management suite or function of the hotel.”
The shift in revenue management toward more customer-centric strategies impacted what Klaus Kohlmayr, chief evangelist and development officer of IDeaS, called “the democratization of revenue management, which means that now, with the tools that we have and the technology that we have, there’s no hotel in the world that couldn’t benefit [from] and couldn’t afford a revenue management solution. Years ago, it was only available for the most complicated and most complex hotels, and you needed a full-time revenue manager. Now, with the tools that we have, including our various products, even the smallest hotel or campground anywhere in the world can implement a revenue management solution very, very easily and quickly, connect it to the right system, and then benefit from it right away.”
While revenue management tools have become more accessible to a wider range of hotels, the current market can still be challenging for suppliers of this technology. “Today’s market is more volatile than ever, shaped by shifting travel patterns, global instability, inflation, and ongoing staffing challenges. We can’t control these macro forces, but we can control how we price, market, and optimize the guest journey,” said Richard Valtr, founder of Mews. Ultimately, hoteliers’ need to compete successfully ensures that RMSs will thrive even under these uncertain economic and market conditions. “I think that there’s this big transformation in the industry where companies are really leaning into technology to help them gain and maintain their competitive advantage,” noted Kohlmayr.
What started as a process with manual spreadsheet input is now an AI-powered automation that analyzes data to implement tangible strategies to grow revenue, and hotels can use RMSs to keep up with today’s fast-paced environment. Valtr explained, “The traditional approach to revenue management required heavy manual input, leaving revenue managers and general managers bogged down in admin and pricing decisions. …That’s no longer sustainable in today’s world.
Features to Consider
Hoteliers seeking to implement an RMS should prioritize platforms that enhance rather than complicate their existing tech stack. The goal is to streamline operations, save time, and empower teams with the tools that drive smarter pricing decisions, ultimately increasing profitability. Some features that hoteliers consider when implementing revenue management software include:
• Flexibility. One of the most important aspects of an RMS is flexibility. From hoteliers with multi-hotel portfolios to the owner of a singular boutique hotel, each hotelier requires something different when it comes to an RMS. For example, an unbranded, independent hotel doesn’t have hours to spend sifting through data, Kohlmayr said. “You need to have a system that puts the power of revenue management in the palm of your hand that you can take with you and basically does all the work for you. … That will be a mobile-based experience that’s very easy to use and interact with.” However, for a huge hotel in Las Vegas, “you’re going to have maybe 10 people focused on revenue management, and you’re going to have a user experience that is desktops and maybe three screens, and you’re going to have people really excited about looking at data. So, it has to be the right experience for the right people that are interacting with that technology.” Without creating a system that works well for a target customer, an RMS won’t provide value for hoteliers.
Woolenberg reflected that sentiment and said, “We know that no two hotels are alike, and the ability to implement your unique strategy while having the tools that make building that strategy easier … is something that’s really important. We really want to give hotels the flexibility to do what they need to do, automate what they want, and take control of the things that they don’t want to automate. Having that flexibility is critical and it’s been a hallmark of our philosophy around revenue management.”
• Automation. Flexibility goes hand-in-hand with automation, giving hoteliers the ability to choose which tasks to manage manually and which to delegate to technology or AI. Real automation is also critical, and part of what Duetto does, Woolenberg explained, is give its customers the ability to “use the system to take control of maybe the elements of your strategy that you can automate whereas more near term or different things that you want to take control of and have more manual intervention, you can. You can certainly have the ability to automate everything.”
Beyond giving hoteliers control over which tasks to manage manually and which to automate, it’s essential that the technology functions reliably without constant oversight. “Equally important [to having an intuitive solution] is full automation with minimal manual oversight. The best RMS solutions dramatically reduce the time teams spend on repetitive tasks like pricing updates and rule-setting. Instead, they apply AI-driven logic that automates decision making, freeing up time for strategic planning and growth,” Valtr said.
The accelerated adoption of automation is, in part, a response to the COVID-19 pandemic, which pushed many hospitality companies to embrace RMS amid rapidly changing market conditions and an increased need for support. “Market dynamics are becoming more and more dynamic,” Kohlmayr added.
“If you don’t have automation in place that helps you with your most critical decisions, then you’re just going to be left behind.”
• Actionable, integrated insights. Data on its own is “kind of useless” Woolenberg said, unless it has some form of actionable insights tied to it. When the RMS provides insights into how hoteliers can add value to their properties and then seamlessly integrates it into the property’s tech stack, then, as Woolenberg said, “Data is really important. One of the things that revenue management systems can do—generally, but it’s something that’s a real focus area for us—is … take that data, cleanse the data, but most importantly, make that data actionable.”
Seamless integration into a wider tech stack is also important because it makes the revenue management software more valuable. “People typically look at [RMS] in isolation, and that can lead to problems,” Kohlmayr explained. “So, you need to look at the robustness of the decisions that the system is making. Not every revenue management system has the same quality of decisions, or the same methodology, the same philosophy, the same what we call ‘revenue science’ behind it.”
An RMS must not only integrate seamlessly with a hotel’s tech stack; it also needs to deliver clear insights that help hoteliers make smarter business decisions. “The foundation of any effective RMS is a real-time, dynamic pricing engine. In today’s fast-moving environment, pricing decisions need to respond instantly to changes in demand, competition, and booking patterns. It’s not enough to update once a day—the system must adjust pricing continuously, ensuring rates stay competitive and aligned with market conditions,” Valtr said.
Valtr continued, “Ease of integration and usability are essential. The RMS should plug seamlessly into your PMS and other tech systems with an intuitive interface that requires minimal training. Hotels should be able to get up and running quickly without needing extensive technical support.”
Artificial Intelligence
A hot-button topic in the industry is the use of AI in multiple capacities. Many companies are thriving by implementing AI, especially those in revenue management. “AI should enhance the human experience, not replace it. When used right, it’s the fastest way to make every stay more valuable, both for the guest and the hotel,” Valtr explained.
For Duetto, its revenue and profit operating system is enabled by AI. “Any software company, particularly in vertical market software like we’re in catering to hotels, has to be thinking about [AI]. Ultimately, as we roll out our products where the AI and machine learning are embedded, the goal there is to help our customers make high-quality decisions and take action on the data in a really effective way,” Woolenberg emphasized.
Additionally, Woolenberg focused on the discussion in the industry of AI replacing talent in multiple capacities, but noted, “there’s so much nuance in revenue management that I personally don’t think that’s going to happen for the foreseeable future, if ever. We’re really coming from the standpoint of we want to support the people who are using our platform with the best technology, AI being one of those elements.”
With the amount of data these operating systems are processing, there’s too much to assess to not use AI. The technology enables quick turnarounds and allows hoteliers to make the best decisions possible for their properties. Kohlmayr said, “The amount of data that we feed into the AI has multiplied and continues to multiply.”
“It’s becoming much, much more powerful and much, much more automated [for] the revenue manager to focus on decision-making … and for the system to take over the day-to-day pricing activities,” Kohlmayr added.
New Tech Focused
Traditionally, the hotel industry has been slower to adopt new technology, in part because personalized service is the core of its success. Many hoteliers had implemented technology in response to the challenges that stemmed from the COVID-19 pandemic and have since doubled down on using technology to benefit operations.
Hospitality companies are now much more aware that technology needs to be invested in. Woolenberg said that during the pandemic, “there was a lot of pressure on hotels to get lean where they might have made different decisions if we weren’t going through a pandemic.” Now, Woolenberg said, “What I can say with confidence is that hotels will make decisions to make moves and invest in technology. I think there’s going to be a very robust environment. And if they were on the fence about investing in a system like our revenue and profit operating system before, the reality is that our environment has gotten a lot more complex. There’s a lot more data.”
Similar to Woolenberg, Kohlmayr had positive sentiments about how the industry is embracing technology, especially in relation to scale. “Everyone has realized that technology is critical to help with scaling, to help with labor issues that are still persisting in the industry, and to help with getting companies to become more productive and make better business decisions,” said Kohlmayr. “I think that there’s this big transformation in the industry where companies are really leaning into technology to help them gain and maintain their competitive advantage.”
Valtr noted that while adoption remains slow, there are hoteliers that are open to adding in new tech into their businesses. “The industry has historically been slow to embrace digital transformation, and many hotels still operate on legacy systems with processes reminiscent of decades past. Unlike other sectors where digital experiences have been seamless, hospitality often lags, with guests still subjected to slow and manual check-ins and other antiquated processes.”
Valtr added, “We are seeing a great appetite for cloud-based technology to automate routine tasks and empower hotel staff to focus on delivering personalized and memorable experiences, which guests have come to expect.”
Moving Forward
The future of revenue management has never looked more promising. According to both Valtr and Kohlmayr, the scope of revenue management is rapidly expanding beyond traditional room pricing. The future of revenue management lies in applying these strategies to optimize pricing for merchandise, ancillary services, event spaces, and even coworking areas. This broader approach reflects a shift toward total revenue optimization, where every revenue stream is strategically managed to maximize profitability and enhance the guest experience.
But Woolenberg noted the need to “simplify” as more and more hoteliers become further interested in how technology, specifically RMS, can add value to their operations. Woolenberg added, “I think you’re going to see more interest in technology, what can we invest in to make us better and make us more effective. But, ultimately, one thing that I think you’re going to see is there’s so much fragmentation in the hospitality tech stack, the actual technologies that hotels use, [that] there is a desire to simplify. I think you’re going to see strong players like Duetto and others help our hotel customers and partners to simplify things a little bit in terms of the tools and technologies they need to be effective. That’s an area that’s been a question mark that I think is going to evolve.”
DIY Revenue Management System: CoralTree Creates In-House Solution to Store and Analyze Data
During the COVID-19 pandemic, CoralTree recognized a need to identify hidden demand within negative booking trends. “As properties grappled with cancellations and negative pace, the team realized there was a need for tools that could isolate new demand and provide a real-time, holistic view of the business,” said Dana Cariss, senior vice president of revenue optimization for CoralTree Hospitality. Thus, trē, which aggregates data from all major hotel systems, was born.
Cariss mentioned this product isn’t “something you can buy off the shelf. CoralTree had attempted similar solutions in the past without success, but with trē, we finally cracked the code.” This project solved an industry gap for the company by creating a fully integrated analytics system that transcends functions. CoralTree attempted to implement third-party versions of trē for years that ended up not working as the company needed them to, which was the catalyst for in-house implementation.
As a product, “trē empowers hotels to move from fragmented reporting to a seamless, intuitive experience that delivers deeper insights, faster,” Cariss said. “With automatic daily updates and transaction-level detail, teams spend less time pulling reports and more time understanding their business and acting on it.”
Proprietary tools like trē can add depth to a hospitality company’s tech stack where third-party solutions might not be the best fit. Cariss explained, “In an industry reliant on fast-moving data, a proprietary business intelligence system like trē is no longer a luxury; it’s a necessity. It gives hotels a true competitive edge by turning operational complexity into actionable clarity, allowing teams to make more strategic decisions, faster.”
An RMS can take hotels to the next level. Developing a system in-house is what Cariss called “the groundwork for AI-enhanced decision-making, where real-time guest behavior and demand signals drive smarter, faster revenue optimization.” And, as Cariss noted, “The future [of revenue management] lies in intelligent automation and guest-centric strategy.”