Definition
Specialized software that uses algorithms, historical data, and market intelligence to optimise pricing and inventory decisions automatically. A modern RMS analyses demand patterns, competitor rates, and booking pace to recommend or automatically set optimal prices for each room type and date. RMS transforms revenue management from intuition-based to data-driven decision making.
Also related to Rate Recommendations
Related Terms
BIBusiness Intelligence
Technology that transforms raw hotel data into actionable insights through dashboards, reports, and visualizations. BI tools consolidate information from multiple sources (PMS, RMS, finance) to reveal performance trends, identify revenue opportunities, and support data-driven decision making across all departments.
Learn more →Metasearch
Comparison sites such as Google Hotels, Trivago, Tripadvisor and Kayak that show a hotel's prices from several channels side by side — OTAs and the hotel's own website. The guest picks one and books on that channel. Metasearch can send bookings to your website for a cost-per-click or commission fee, but it only pays off when your direct price is competitive with what the OTAs show next to it.
Learn more →Related Articles
AI in Hotel Revenue Management: What It Can (and Can’t) Do for Pricing
A practical guide to using AI for forecasting and dynamic pricing: what inputs matter, how to set guardrails, and how to validate recommendations.
Learn more →How to Reduce OTA Dependence and Grow Direct Bookings (Without Slashing Rates)
A pragmatic channel-mix strategy: measure true cost, use rate fences and value-add, protect peak dates with dynamic pricing, and shift demand over time.
Learn more →Static vs Dynamic Pricing: Which Strategy Is Right for Your Hotel?
A practical comparison of static and dynamic pricing, plus a simple framework to decide when to change rates, by how much, and how to stay consistent.
Learn more →Want to improve your RMS?
Sigma Revenue helps hotels improve their key metrics through data-driven revenue management.