Application of a variable pricing strategy based on rate shopper data

Rate shopper and day-to-day business decisions A rate shopper is a tool that automatically checks the prices of selected hotels for a given date. The user can choose which source they would like to have their prices taken from, and select the date span and number of hotels to check. This gives a detailed overview of the market and rates state at the given moment. In every market, competitive price information is critical for making day-to-day business decisions – a small, barely noticeable price increase can generate significant revenue benefits…

Individual customer profitability – key to today’s revenue success

When we analyze data, we often see numbers, statistics, and comparisons. We barely see that these numbers are represented by humans – your customers. Looking at numbers only can result in some significant misconclusions that mathematically sound logical. In a recent article, “5 Hotel pricing Mistakes to avoid” Kris Glabinski, President HowsMyRate, took a closer look into five misleading pricing strategies that are often applied to Hotel Revenue Managers and Owners. One of the points covered was the treatment of customers as statistical volumes rather than specified groups with their…

Are assumptions holding back your revenue management?

It is easy to fall into assumptions. It is human nature, after all, but when do assumptions on revenue management start to work against you. In a recent article, “5 Hotel pricing Mistakes to avoid” Kris Glabinski, President HowsMyRate, took a look at five common pitfalls for Hotel Revenue Managers and Owners. One area covered was the negative effect assumptions have on revenue. Kris said, “I have come across many cases where Revenue Managers would give their arguments based on assumptions, stereotypes, or simply gossip. In effect, their actions on…

Little and often: The winning hotel revenue strategy?

Knowledge of local competitor pricing information is undoubtedly a cornerstone of any successful hotel’s revenue strategy. But, it is what you choose to do with the data that is the differentiating factor between a good financial year and a great one. Rather than just seeing lines on a graph, it is important for hotel owners, managers, and revenue managers to interpret the opportunities that it can yield. For example, a hotel owner might know that June to August are their busy months and increase their pricing to reflect this. Conversely,…

5 Hotel Pricing Strategy Mistakes to avoid

The Internet is full of specialist advice on dealing with prices and revenue management in the hotel industry. The pandemic has changed customer behavior, their lifestyle, and affected demand, so the supply players need to adapt to the game’s new rules. There may be many different pricing strategies that hotels can apply to respond to market needs. Each strategy may have a different result in different hotels. But there are a few strategies that hotels should avoid. Here are the top 5 of them: 1.    Stop using template-based pricing.  As…

How the Hospitality Industry is Recovering in a New Normal. Portuguese Hotels

It is 2021 and statistics are showing that people are travelling once again. After a solid year of staying home, masking up and keeping our collective distance, people are hungry to explore the world. Yet still, demand is far from its peak. The latest UNWTO data shows that over the first five months of the year, world destinations recorded 147 million fewer international arrivals (overnight visitors) compared to the same period of 2020, or 460 million less than the pre-pandemic year of 2019. January to May 2021 compared to 2019…

Pricing strategies from five star hotels in Berlin. September-October update

Revenue Management and Pricing Management are very specific areas of the hotel business. According to 2019 Skift Revenue Management report, only 30% of hotels use some sophisticated technology to manage their pricing. This means 70% of other hotels, still manage pricing manually, strategically only or not at all. According to the report “Yield management in small and medium-sized enterprises in the tourism industry” drawn up by Arthur Andersen, there are two main reasons why smaller hotels are not penetrated with revenue systems: Internal obstacles include insufficient management skills or expertise,…

Customer centric pricing strategies.

The best way to figure out your pricing approach is to put yourself in your customers shoes. To do that, obviously you need to know first who your customer is. Depending on purchasing behaviour of your customers, we can identify a few types of categories of customers. If your customer is about to pay for himself, then he will be looking for best price for the best value he can find. If your customer is making a reservation for someone else and paying for it, then he will look at…

“Pricing Big Data is about spotting a pattern, Pricing Small Data is about spotting the right situation in the right time”…

HowsMyRate.com specializes in collecting hotel room prices and details from over 50 OTAs, accessing prices to over 5m properties in all currencies. The data is enormous. It is impossible to see the details from such a big picture. Sometime we need a microscope to focus on the little things, that create the big data. There are many solutions providing hoteliers with such big data, trying to help them focus on the details through Machine Learning mechanisms, alert systems or suggesting the visualisations that would help understand the data better. However…

Hotel rates on the rise as travel demand ticks up

If you’re thinking of booking that hotel stay you’ve postponed since the pandemic began, you may want to reserve a room right away. Nightly rates, while still somewhat lower than a year ago, are slowly rising to match or — in some popular destinations — surpass pre-pandemic prices, according to travel booking technology company Koddi. Over the last 30 to 45 days, average hotel prices have risen appreciably and are now just 5% lower than one year ago, says Deep Kohli, senior director of client services at the Fort Worth,…