Pricing plays a significant role in any business. Especially in hyper-competitive sectors like hotels, the significance of calculating room rent properly is immense. As a hotelier, your competitors might be just next door. In such scenarios, there’s always the pressure to set the right room price. It is critical not just from the income perspective but also for guests’ interests, which work hand in hand. You can only sustain a steady occupancy rate and top line by providing your guests with the best value for their money. The same will also protect you from being undercut by the competition.
We hope that now you understand why selecting the right room rent for hoteliers is necessary for success. But the question is, how to do this job right?
From capturing and analyzing real-time data to following market trends and seasonality, you must consider several things and keep multiple parameters & metrics in mind to design the optimal pricing model. However, we must also not forget that hotel management is a challenging job. Taking good care of your guests and assuring their satisfaction is as important as price optimization. Therefore, we recommend leveraging the power of technology to ace the revenue management game.
In this post, we will talk about Pricepoint, a hotel RMS (Revenue Management System) that responds to demand changes in real-time and helps users boost their occupancy rate and revenues simultaneously. Let’s look at how our AI-driven dynamic pricing system calculates the best room rent.
Competitor Rate Shopper
Knowing your competitors is essential for any business. Running a hotel is no exception. The better you understand your competitors’ logic behind any decision, the more efficient you can make your pricing model. We are not saying that your competitors’ prices should drive your hotel rate management decisions, but understanding their judgments can help you learn about the overall market condition. Keeping that in mind, we have developed the Competitor Rate Shopper, an outstanding tool that empowers Pricepoint to scrutinize users’ competitors. Leveraging the potential of this tool, you can beat the competition in occupancy rate, room rent, and revenue.
Analyzing Booking Curves and Guest Behavior Models
The efficiency of our algorithm is renowned across the industry as it learns from customer behavior models and booking curves. Don’t worry if you lack any historical data to feed Pricepoint. Our machine learning algorithm can still work with zero to limited data. We can also fetch data from your existing PMS (Property Management System) to get things started.
Taking Current Trends into Account
Considering historical data for price calculation is essential but not the ultimate parameter to focus on. Pricepoint also takes recent trends like weather conditions, seasons, events, etc., into account to ensure the successful implementation of the RevPAR formula in the hotel business. We monitor current trends to adjust and update room rent accordingly.
Leveraging Real-Time Price Optimization
We always keep an eye on the booking trends of a specific room or room type. It allows us to notice changes in room availability and optimize prices accordingly. Our real-time reaction helps users get the best price for their property, even if the change occurs several times daily.
We hope you understand how our automated revenue management software for hotels works to generate the best room prices. We have also created a highly convenient mobile app so hoteliers can always control the game, even on the go. At the same time, our core algorithm will continue functioning in the background to optimize room price and hotel performance. Give us a try to leave your competition behind!