Adjusting hotel rates based on constant changes in market demand can be stressful. Thankfully a rate management tool (RMS) integrated with a hotel Property Management System (PMS) can help. Continue reading to learn more about hotel rate management and the benefits of its incorporation for price optimization. In the end, we will discuss a top-rated revenue management software that is powered by an AI-based RMS (price optimizer). So, without wasting any time, let’s get started.
What Is a Hotel Rate Management Tool?
A hotel rate management tool is software that is usually called a revenue management system (RMS). It helps hoteliers to manage rates depending on the market demand. Furthermore, a modern revenue management software (RMS) allows managers to optimize room rates automatically in real-time without the necessity of spending hours on competitive analysis. Once implemented, hotel rate management will create a strategy to make sure your BAR (Best Available Rate) is always at the level that allows maximizing occupancy and revenues. This pricing strategy can be defined as a tiered rate structure to manage rates within low and peak seasons. BAR pricing strategy gives users more flexibility than the conventional mode of manually changing rack rates for each room. A few typical features of hotel rate management tools are setting:
- Seasonal pricing
- Time-of-day pricing
- Day-of-week pricing
- Daily override functionality
- Discount and premium rates etc.
Interestingly, while users always maintain control, modern RMS will actually monitor, detect and optimize these factors fully automatically. It can instantly respond to both anticipated and unexpected fluctuations in guest demand.
Benefits – Know Why You Should Invest
Some of the key benefits that you can expect from a hotel rate management tool are as follows:
- Trying out different pricing strategies and rate structures
- Reducing stress by leveraging computerized rate setting and optimization
- Achieving your revenue goals effortlessly by boosting your online exposure through numerous distribution channels
- Leveraging the power of automation to optimize room price based on inventory value and market condition
- Controlling reservation rates as per your requirements
The Best RMS You Can Rely on to Automate Price Management
We hope that the concept of hotel rate management and the benefits of using a revenue management system are now clear to you. As promised earlier, let’s talk about one of the best-rated revenue management software powered by AI.
Pricepoint is the name of the software that you can use to automate price management on OTA (Online Travel Agent) platforms like Airbnb, Tripping.com, Booking.com, etc. It is an AI-driven revenue management system that automatically manages prices on hotel booking sites to keep them competitive. Based on our case studies, Pricepoint increases profits by up to 25%! One of the most compelling features of our software is competitor rate shopper. It will help you understand your position in the market. Besides, it will also notify you whenever your prices go different from your competitors.
Real-time dynamic pricing is another key feature of Pricepoint. It will empower you to sell rooms at the optimal price. Our software is the only solution you will ever need to boost the revenues and occupancy of your hotel. Book your 30-day free trial now and start growing with us.