An explanation of the most important factors for optimal pricing in your hotel
Understanding how our pricing solution works will help you get the most out of it. This section is designed to give you an idea of how we calculate your prices.
Below you will find the most important factors we take into account:
Market Intelligence
This is our external factor; therefore, we analyze what other hotels around you are charging. Here we have a slightly different approach compared to what you probably worked with in the past.
What is the philosophy behind this?
Our goal is to identify hotels that have similar demand patterns to yours and are performing well in their revenue management. In most cases, those hotels are larger than yours and usually have a full-time Revenue Manager. Revenue Managers keep an eye on events, check the weather and use the vast amount of data they have to always set the best prices for their properties.
The hotels we identify may be different from yours in a number of ways. However, we are not comparing price to price or double room to double room. Instead, we are concerned with how room rates change. How do RMs estimate the market at any given time?
Our philosophy: consulting 10 hotel experts will give us an idea of where the market is at any given time of the year. And you'll never miss what the experts think.
Yielding (Price Optimization)
Our internal factor is in charge of analyzing the data we get from your property; occupancy and booking behavior of your guests. For any future date, we ask ourselves how many rooms we will sell and how many days we have left to sell the remaining rooms.
We optimize this process, including your individual settings, such as how aggressively you want to adjust your prices.
For example, if you only have 2 rooms left to sell and a month to sell them, we know you could charge more and still sell them because demand is high. At the same time, when you have 30 rooms left for the next weekend, you will need to reduce prices to make sure you sell more rooms.