Smart Hotel Revenue Managers Track Competitor Prices Using Advanced Rate Buying Tool
Today’s travelers are tech geeks who know how to use technology to make their trip cheaper, more convenient, and more comfortable. Technology allows them to be on the go without having to worry about the itinerary, the route and even the accommodation. Even while on the go, they can choose from several hotels that perfectly suit their budget and needs without compromising on any aspect. The credit is due to the perfect availability of all Metasearch and OTA websites on mobile devices in the form of responsive mobile websites and apps. Hotels have also been proactive in detecting the paradigm shift and have shaped their entire strategy to encourage and support mobile reservations. They are now using advanced rate buying software that can analyze the prices of all the competition and produce the best possible rate for each room in the hotel’s inventory. The hospitality industry thrives on the ability to charge the right rate to the right customer at the right time with the goal of generating maximum revenue.
In this age of fierce competition and ever-fluctuating demand, manually tracking competitive rates is nearly impossible. Also, prices for the same hotel room may differ from one OTA to another and even depending on the search location and the type of traveler. Price differential is the latest trend in the hospitality industry and only an advanced RateShopping tool is nothing less than a necessity to stay competitive and profitable in such complex market dynamics.
An efficient RateShopping tool is capable of monitoring the prices of thousands of competing hotels on hundreds of different channels, including OTAs, to carry out detailed competitive analysis that helps a hotel formulate the best pricing strategy among its customers. competitors. However, in the current scenario, just a basic RateShopping tool is not enough to define the correct pricing strategy. Smart hoteliers are using many tricks to get high bookings and income. Some of them are differential prices, including variable hotel prices based on location, that is, prices based on geolocation. Prices based on devices than prices based on the device used to reserve. These combinations have made the task of tracking the rate of competition even more daunting for revenue managers. So it’s time to evaluate your existing RateShopping tool and see if it is competent enough to provide you with all the competitive rate tracking requirements you need. If not, it’s time to switch to one that has all of these features.
Here are some key features of an advanced rate buying tool that can provide an in-depth analysis of competitor prices:
- Prices based on geographic location: To take advantage of the difference in the ability to pay of guests from different countries, hotels have started to set differential prices based on the location (prices based on geographic location) of the customer booking the hotel. For example, a person in Australia and a person in Brazil are willing to book a hotel in Malaysia, then they will both get different prices for the same room as they belong to different countries. Smart fare buying tools provide an in-depth analysis of the price offered by the competition to travelers located in different countries of the world. This information is crucial in the sense that a hotel could be selling its inventory for the same price all over the world, where the competitor must be winning by offering lower prices.
- Mobile Rates vs. Desktop Rates: With the advent of smartphones, mobile devices have become the most popular device among the masses for searching for destinations, hotels, and even making reservations. A traveler is always on the go without fixed itineraries and needs to make reservations multiple times throughout his trip while traveling from one place to another. The data reveals that around 150 million bookings were made through mobile devices last year and the number is increasing. Hotels are also trying to encourage travelers to book via mobile devices, especially via mobile apps, where they offer discounted prices compared to desktop and mobile sites. These types of device-specific price spreads pose an even greater challenge for revenue managers to keep their prices competitive. An evolved RateShopping tool would give you intelligence on all the differential pricing patterns that exist in the competitive arena by keeping perfect control over competing mobile app rates. This insightful information is intended to benefit hoteliers by setting the best prices for their inventory to compete with the lowest prices on the market.
- Member rates vs non-member rates: A rewarding and profitable loyalty program is the foundation of any good hotel. Hotels treat their loyal customers differently by offering them prices that are not available on any OTA or even on the hotel website. But, a smart rate buying even penetrates such loyalty offers and the Close User Group (CUG) offered by the competition to its loyal customers, providing a comprehensive picture of the competitor’s pricing strategy. This crucial information helps a hotel offer similar rates in one form or another, thus giving you the opportunity to earn money. Additionally, all information is presented in a desired statistical and graphical format, allowing for quick interpretation so that instant pricing decisions can be made.
The correct pricing strategy can be a crucial differentiator in a hotel’s performance, so it is imperative to have a good amount of knowledge about competitor pricing in order to come up with a winning pricing strategy at all times. Implementing a smart and insightful RateShopping tool that tightly integrates with all major OTA, Meta websites alongside the hotel website is a half done job. This can help any hotel drive its pricing strategy, promote rate parity, and project the hotel as the best rate provider among the competition.