How to Identify the Right Room Pricing Strategy

By Gino Engels Co-Founder, OTA Insight | March 24, 2019

When it comes to hotel revenue management, getting room prices right is arguably your biggest priority. And while you may be aware that there's a science to it, there's so much to do on a daily basis that it can be difficult to determine a starting place.

On any given day, hoteliers need to do the following: keep constant track of KPIs, track activity of competitors and channel partners, keep an eye on traveler trends, and have many meetings to loop in key stakeholders.

With such an information overload, you then need to accurately forecast demand so that you can pull all the right levers to result in maximum revenue for a hotel. How on earth can you have a sense of control? The key is to avoid flying blind - and for that, you need exploitable data. Otherwise, it will be impossible to make any important decisions with confidence.

Let's look at this in context.

Setting Hotel Rates to Maximize Revenue

Hotels are economic units, so pricing depends on supply and demand at any given time. The ultimate goal is to consistently exceed (or at the very least, hit) KPIs. To forecast demand for a hotel room, you should consider two key measures: current on-the-books (OTB) reservations and your likely "pickup".

Choose a Social Network!

The social network you are looking for is not available.


Hotel Newswire Headlines Feed  

Mercedita Roxas-Murray
Andrew Glincher
Maricha Ellis
Naseem Javed
Paul van Meerendonk
Randy Reaney
Steve Kiesner
Peter Goldmann
Allison Ferguson
Simon Hudson
Coming up in June 2019...

Sales & Marketing: Selling Experiences

There are innumerable strategies that Hotel Sales and Marketing Directors employ to find, engage and entice guests to their property, and those strategies are constantly evolving. A breakthrough technology, pioneering platform, or even a simple algorithm update can cause new trends to emerge and upend the best laid plans. Sales and marketing departments must remain agile so they can adapt to the ever changing digital landscape. As an example, the popularity of virtual reality is on the rise, as 360 interactive technologies become more mainstream. Chatbots and artificial intelligence are also poised to become the next big things, as they take guest personalization to a whole new level. But one sales and marketing trend that is currently resulting in major benefits for hotels is experiential marketing - the effort to deliver an experience to potential guests. Mainly this is accomplished through the creative use of video and images, and by utilizing what has become known as User Generated Content. By sharing actual personal content (videos and pictures) from satisfied guests who have experienced the delights of a property, prospective guests can more easily imagine themselves having the same experience. Similarly, Hotel Generated Content is equally important. Hotels are more than beds and effective video presentations can tell a compelling story - a story about what makes the hotel appealing and unique. A video walk-through of rooms is essential, as are video tours in different areas of a hotel. The goal is to highlight what makes the property exceptional, but also to show real people having real fun - an experience that prospective guests can have too. The June Hotel Business Review will report on some of these issues and strategies, and examine how some sales and marketing professionals are integrating them into their operations.