It’s likely you’re already aware, and have seen the benefit, of channel management technology. If you are using a channel manager you’ll know how important it is for expanding your hotel’s distribution and optimising the way you manage your rooms.
While you may be satisfied with the amount of bookings you receive, how can you be confident the revenue coming in is maximising your profit? Setting rates, trying to collate data, and analyse your revenue management strategies can be difficult and time-consuming, and that’s without taking into account the risk of inaccuracy when you do it manually.
That’s why you should strive to inform your channel management with a pricing intelligence tool.
So, what is a hotel room pricing intelligence tool?
Room pricing software should be an essential cog in the machine that is your revenue management strategy.
It’s an innovative tool that analyses hotel pricing trends, current market conditions and local competitor rates so you can take a more expert approach to the rates you set for your hotel rooms.
At the same time, the best tool will help you simplify your strategy and adapt its application to other hotel technology solutions that you use.
Why will a room pricing tool will make life easier on your channel manager?
The rates you set on your channel manager need to be more or less on par with your competitors. Underselling will mean a drop in your revenue, while overselling will see a reduction in bookings.
Using a pricing intelligence tool means you can easily track the rate activity of your local market, maintain parity across all your channels, and then use your discretion to make changes.
Long-range forecasting is also vital to ensure what level to set your rates at, and importantly, when. Without real-time market data, this is impossible. But with this capability, you can be clearer in the logic behind your room rates.
To take full advantage of your channel manager, you need to be agile and change your rates hourly if necessary, depending on what time of day, month, or year it is.
With the up-to-the-minute data you get from a pricing tool, this poses no issue for you and your revenue will always be in line with your targets. With this data behind it, your channel manager becomes an even more powerful tool.
Data-sets and reports are another feature available on a pricing intelligence tool. Generating and analysing reports is extremely important for future revenue plans. Each of your distribution channels will differ slightly (or significantly) in terms of the business they receive.
Different segments may also display varying booking behaviour, the patterns of all travellers are not going to be the same. By looking at this data you can identify the different periods when certain channels are more or less popular and put your own strategies in place. Getting your reports from this tool is also a lot quicker, meaning it’s more likely to be current.
In the end, a pricing intelligence tool is always a good idea, if you want to be a data-driven hotel that has control over your own revenue management success.
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