Setting your room rates and developing a revenue management strategy for your hotel can be quite complex.
Hotel rates are not a static number that stay consistent from day-to-day and month-to-month. In fact, the rates for your hotel rooms can change by the hour, depending on the demand in the local market and availability of rooms at competing locations.
This is why more hotel operators are looking to hotel room pricing tools in order to price their rooms appropriately.
What is a hotel room pricing intelligence tool?
A hotel room pricing intelligence tool is an innovative feature that analyses hotel pricing trends, current market conditions and local competitor rates in order to make an expert recommendation on the rates that you should set for your hotel rooms. It is a market intelligence tool that can simplify the process of developing an effective revenue management strategy. It is a powerful resource for hotel operators, who can rely on the tool to provide them with the latest information regarding hotel pricing trends in their region.
The best part is, the data provided by the tool is simple to interpret and understand, which makes it more useful than other complex tools that can confuse or intimidate the average hotel operator.
Features and benefits you should look for in a hotel room pricing intelligence tool
Some of the key features you should look for in the hotel pricing intelligence tool that you choose include:
- Long range room rate forecasting
You should work with a hotel room pricing tool that offers long-range forecasting. This allows you to be accurate and to optimise the room rates for your hotel in advance.
- Rules and notifications for price changes
Find a tool that allows you to set your own rules in regards to your hotel room pricing strategy. This allows you to enjoy a relevant hotel pricing analysis that takes into consideration your own rules and settings as well as the current hotel room pricing trends in your local destination.
- Analyse your local hotel compset
Use the hotel pricing tool that gives you valuable data and allows you to make immediate decisions. The tool should give you the capability of analysing the current hotel pricing trends and the rates at other competing hotels so that you can raise or lower your own rates accordingly.
When you select the right hotel room pricing tool for your property, you will find that you can increase the revenue you earn per room.
How to get started with a hotel room pricing tool for free
Look for a pricing intelligence tool that allows you to get started for free. For example, SiteMinder’s tool, which is called Prophet, completes your hotel’s competitive analysis and provides you with real-time recommendations for your room prices.
This means that you will always know the best rate to set for your hotel rooms, allowing you to attract more travellers and increase your conversions through your online booking engine.
Setting the right price for your hotel rooms requires you to strike the delicate balance between generating the most revenue possible without going so high that the market will not support your prices.
With Prophet you can monitor the rates of your local competitors while also setting a hotel room pricing strategy that will be enforced and adhered to.
To learn more information about what SiteMinder has to offer and to see what Prophet can do for your hotel room pricing, and set up your free forever profile today.