The Price Is Right with Rate Management
Room prices have the greatest significance when it comes to influencing guest behaviour and hotel profitability. But what price is the best price for you AND your guests? Staying competitive is key in running any business, especially with hotels where demand can fluctuate as fast as opening morning at the New York Stock Exchange. However, price management tech has become more advanced and more affordable over recent years meaning it’s easier than ever to cater to your guests while still offering a price to keep you in the green.
Price management aka rate management, involves creating a price for rooms and then ensuring that those prices meet the current demand across all sales and distributional channels. Instead of going off gut feeling or wasting time on endless Excel sheets, rate management tech can help optimise your time as well as ensure that the prices will still be attractive to your guests.
Rate Management automatically adjusts room pricing to any manually set parameters and will continually adjust the rates to match demand changes. A base rate is taken into account for all future dates based on current occupancy; however, the price will adjust according to competition and average room rate gathered from booking engines and third party distribution channels.
Over time a rate manager becomes vital in providing you with valuable information in regards to your revenue management and to make the optimal pricing and operational decisions. If you’re curious to learn more about the benefits of rate manager, don’t hesitate to contact us.