The profit optimization function evaluates total revenue, profit margins, and guest acquisition/service costs to capture the most valuable bookings
DALLAS – September 29, 2021 – HITEC booth #3401 (Kay Bailey Hutchison Convention Center Dallas) – IDeaS Revenue Solutions, the world’s leading provider of automated revenue management software and services, today announced the Profit Optimization feature within the G3 Revenue Management System (RMS).
Profit Optimization is an enhancement to the G3 RMS revenue management science engine that allows it to capture the most valuable bookings by considering the total contribution of each. This enables hoteliers to evaluate total revenue, profit margins for each revenue type, and costs associated with acquiring and servicing guests in real-time, while determining highly desired key performance indicators in hotel management, such as profit per available room (ProPAR).
- Gain a holistic view of profit – IDeaS’ innovative and flexible profit optimization engine uses any combination of ancillary revenue, margins, acquisition, or service costs to provide updated information upon which decisions can be made. This leads the property management system or central reservation system to ultimately account for the higher profit value of bookings.
- Forecast the most profitable transaction – By using Profit Optimization in G3 RMS, hoteliers understand the true value of each guest segment and room type. This feature forecasts and enables the most profitable guest bookings while incorporating data from other sources such as restaurants, bars, retail, recreational activities, casinos, and more.
- Optimize all bookings – G3 RMS utilizes a unique and proven approach that automatically produces a combination of decisions. Working together, these decisions maximize global profit, compared to the approach of prioritizing revenue growth from accommodation per available room (RevPAR).
Sanjay Nagalia, co-founder, COO, CTO, IDeaS, stated: “For too long, profit optimization has remained out of reach for the hospitality industry. While others have talked about it or offered simple reporting solutions, IDeaS has worked to change our clients’ mindset from focusing on accommodation revenue growth to maximizing the value of the guest entering the rooms. To make this possible, we have innovated a central optimization process that allows hoteliers to achieve the most profitable transaction, and today, we are excited to be the first RMS provider to offer a holistic approach to total profit optimization that automates all key business levers by prioritizing profit.”
About IDeaS
IDeaS, a SAS company, is the world’s leading provider of revenue management software and services. With over 30 years of experience, IDeaS delivers revenue management science to more than 16,000 clients in 144 countries. Combining industry knowledge with innovative data analysis technology, IDeaS creates sophisticated yet simple ways to empower those involved in revenue management with precise and automated decision tools they can trust. Results are delivered on time. Revenue transformed. Discover superior profitability at ideas.com.
Frequently Asked Questions
What is the Profit Optimization feature in G3 RMS?It is an enhancement to the IDeaS calculation engine that evaluates total revenue, profit margins, and acquisition costs to identify and capture the most valuable bookings in real-time.
What is the difference between ProPAR and RevPAR?While RevPAR focuses on gross accommodation revenue, ProPAR (Profit per Available Room) measures net profit, taking into account all operating expenses and ancillary revenues.
What data sources are included in profit optimization?The system integrates data from various points of sale, such as restaurants, bars, retail, recreational activities, and casinos, for a holistic view of guest value.