EzRMS™ Core Module

Executive Summary

EzRMS™ is the Core Module of the EzRMS™ Internet Product Suite provided by Easy (Ez) Revenue Management Solutions, a world-wide provider of state-of-the-art ASP / Internet solutions in the area of Revenue & Yield Management.

EzRMS™ is a packaged solution specifically developed for the hospitality industry by our Solution Specialists / Revenue Management Scientists, and, therefore takes into consideration Length-of-Stay and Guest per Room concepts which are unique to the hospitality industry.

EzRMS™ answers fully to the questions raised by Revenue Management Science and is designed to enable your hotel, or group of hotels, to sell the right product to the right customer at the right time for the right price. Of course, with the objective of optimising product prices and availability in order to achieve the maximum profit margins.

EzRMS™ achieves this objective with a combination of advanced information technology, unique sophisticated mathematical algorithms and innovative business process design.

EzRMS™, designed for maximum ease of installation and user friendliness using the latest ASP and Internet technologies, gives you the opportunity to rapidly reap the rewards of professional use of Revenue Management techniques - leading quickly to increased turnover, higher profit margins and an excellent return of investment.

The key components of the EzRMS™ Core Module are:

A Database Loading and Consolidation Module, which extracts, loads and consolidates the historical demand, rates and inventory statistics, the current demand evolution / trends and the main characteristics of your Property.
A Demand Modelling Module, which automatically analyses, evaluates, associates, dissociates, compares the main characteristics, patterns and trends of the demand factors and proposes explanation models adapted specifically to your Property.
A Demand Forecasting Module, which uses the explanation models of demand at your Property and provides a set of forecasts for future demand, cancellations and no-shows, calculated both at aggregated and desegregated levels.
A Revenue Optimisation Module, which consists of a state-of-the-art and proprietary set of innovative algorithms meant to solve the revenue optimisation problem given a probabilistic forecast of demand and capacity constraints.
A Controls and Recommendations Module, which interprets, translates and adapts the results of the Revenue Optimisation module with the double objective of presenting (a) the hotel personnel a list of future decisions to be taken, with a clear hierarchy, based on revenue growth and (b) the control values to be loaded into the Reservation Systems, Distribution Systems and Internet Distribution Channels.

Database Loading and Consolidation

EzRMS™ achieves the double objective of providing you with an in-depth view of both the historical and current demands of your Property and preparing and consolidating demand information for evaluation by the Modelling module.

Among all the data extracted, the following data is loaded and consolidated into the EzRMS™ database:

Historical Occupancy,
Historical Booking and Cancellation Patterns,
Revenues,
Historical No-Shows, Walk-In's and Denials,
Historical and Future Inventories,
Pricing Structures, (Rate Grid),
Current Bookings,
Length of Stay information,
Guest per Room information,
Day of Week information,
Market Segment information.

Modelling

The Demand Modelling module of EzRMS™ builds explanation models which describe the unconstrained demand (pattern, trend, characteristics, specifics) of your Property.

Such factors as Seasonality, Day of the Week, repetitive and unique Events, Strategies, Market Segments, Length of Stay, Guest per Room, Booking and Cancellation patterns, No-Shows and Walk-In's and Room / Extra Revenues are considered in the creation of these explanation models.

The explanation models calculated by this fully automated solution are found to be the ones which minimise the residuals observed when applying models to the above mentioned factors.

Demand Forecasting

The Demand Forecasting module of EzRMS™ combines the use of explanation models produced by the Modelling module with the recent and future history of demand and bookings for the forecasted period. The types of Forecasts proposed by this module are:

History-Based Forecast which makes use of the historical demand and repetitive events explanation models,
Booking Pattern-Based Forecast which applies the booking and cancellation explanation models to the current level of bookings for the future period.

These sets of forecasts are then combined internally on the basis of their level of uncertainty - which is automatically calculated by EzRMS™.

Optimisation

The Optimisation module of EzRMS™ combines our expertise in hospitality with state-of-the-art and proprietary algorithms. The objective of the Optimisation module is to give the 'optimal' solution to the Revenue Management problem taking into consideration the following:

Forecast of Demand (and its uncertainty) by Length of Stay and Guests per Room,
Forecast of Materialisation and Cancellation of the Current Bookings (with their uncertainties),
Estimated Room Revenue, extra Revenues by Length of Stay and Guests per Room for each Room sold in a given Rate Bucket,
Capacity Constraints,
Acceptance Strategies at the Property (Last Room Availability, Minimum and Maximum Limit constraints).

The output of this module consists of a set of comprehensive recommendations which are provided per Source of Business / Distribution channel.

Controls and Recommendations

Given the results of the Optimisation module, the Controls and Recommendation module of EzRMS™ will:

Calculate the expected revenue growth of each of the detected recommendation changes and use this information as a basis for the level of decision priority for the hotel personnel,
Translate, convert and adapt the Recommendations into Controls designed specifically to meet the requirements of either the Property Management System, Central Reservation Systems, Global Distribution Systems or Internet Distribution channels in which the inventory of the property is displayed. In particular, EzRMS™ supports the following types of Controls: Nested and Partitioned Booking Limits, Bid Prices and Gradients, Length of Stay Restrictions and Guests per Room Restrictions. All these Controls are the result of the same and unique Optimisation process.

Proprietary & Confidential