Using a rules-based approach today leads to suboptimal pricing and yielding, and results in missed revenue opportunities for hotels. Many rules-based RMS providers promote their systems as offering dynamic pricing “optimization.” In truth – and by definition – heuristics-based approaches lack the capability to achieve true optimization.1 They are neither mathematically optimized nor statistically robust enough to account for today’s complex distribution landscape. In fact, most rules-based approaches to RM are simply geared towards automating the “gut-feel”-based decision making that would take place in the absence of any system. But how is a revenue manager to know if a $10 drop in rate on a slow night will truly drive the best possible revenue outcome for a hotel? This is a crucial gap that only a science-based RMS can fill. Get the full story at rainmaker