A common misconception in the hospitality industry is that Revenue Management Systems (RMS) only add value when demand is high. During the COVID-19 pandemic, many hotels froze pricing and abandoned their RMS, viewing it as a luxury in times of crisis.

But the reality is different: modern RMS solutions powered by artificial intelligence (AI) have proven to be essential tools in both high- and low-demand scenarios.

The Root of Negative Perceptions

Historically, many hoteliers believed that accepting bookings at any available rate was the best strategy to survive low demand. This legacy approach led to the perception that RMS tools were unnecessary.

Research tells another story. Siim Karu’s study on a&o Hotels and Hostels, one of Europe’s largest hotel chains, found that during lockdowns, the chain generated 7% more revenue using their RMS compared to static pricing methods.

This finding challenged the industry’s assumptions and highlighted the real potential of RMS—even in times of uncertainty.

Turning Uncertainty into Opportunity with AI

Low demand is difficult to predict accurately. That’s why hotels need intelligent systems that react instantly and adjust rates automatically.

AI-powered RMS platforms:

• Monitor market conditions 24/7
• React instantly to spikes or drops in demand
• Optimize prices faster and more efficiently than manual calculations

For example, Pricepoint can quickly detect an unexpected surge in bookings and recommend optimal prices, minimizing operational burdens and eliminating guesswork.

Moving Beyond BAR Pricing

Traditional Best Available Rate (BAR) models are increasingly irrelevant in low-demand cycles. Static rate structures don’t reflect real-time market conditions and often leave revenue on the table.

Pricepoint’s AI-driven dynamic pricing eliminates outdated practices by continuously optimizing rates. Its fully automated system ensures hotels always have the best price in play, regardless of seasonality or demand fluctuations.

Benefits of Using RMS in Low-Demand Scenarios

• Increased revenue through smarter pricing
• Higher occupancy rates from optimized offers
• Time savings with automation replacing manual adjustments
• Reduced operational stress during unpredictable cycles
• Future-proof strategies with continuous AI learning and refinement

Conclusion

The belief that Revenue Management Systems lose effectiveness during low demand is a myth. In fact, AI-powered RMS solutions like Pricepoint turn uncertainty into opportunity by optimizing rates continuously and automatically.

Hotels using Pricepoint not only protect revenue during slow periods but also position themselves for faster recovery when demand rebounds.

👉 Experience it for yourself with a 30-day free trial of Pricepoint and see how AI-driven pricing can transform your revenue and occupancy.

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