Pricing with Confidence

By Ravneet Bhandari Chief Executive Officer, LodgIQ | May 07, 2017

Picture this: You’re a revenue manager. You follow all the rules. And you’re very diligent at it too. When setting the asked for room price for any specific day, you check your hotel’s historical rate records, examine what your comp set is charging, and even notice that Beyoncé is in town on that night, so you pump up the rate a few bucks more. Seems like the right thing to do, right?

Perfect! or is it?

After all, this is the way smart revenue managers and hotel operators have been setting rates for years, and its helped make hotels a lot of money. Particularly, in recent years for many global markets. How could it not be the right thing? Especially since many hotels are probably enjoying impressive revenue.

Yet, that’s not the case at all. While you were out pricing hotel rooms with what you assured yourself was a full complement of confidence, the rules went ahead and changed. And with it, everything you thought you knew about perfect pricing evaporated.

To thrive today, we have to understand those procedures that helped us for years are no longer the holy grail in the way they once were and that industry, guests, and data applications have moved on.

Today, pricing with confidence means making decisions based on reams of previously undetectable information. Valuable data we never realized existed because it was invisible to us. We’ve had the illusion we’ve attained perfect pricing, but that wasn’t the case at all. The good news is, though seemingly more complex, finding confidence in pricing is not as difficult as it seems at first blush.

Coming up in January 2018...

Mobile Technology: Relentless Innovation

Technology has become a crucial component in attracting and retaining hotel guests, and the need to enhance a guest’s technology experience is driving a relentless pace of innovation. To meet and exceed guest expectations, 54% of hotels will spend more on technology in 2018, and mobile solutions in particular will top the list of capital investments. Many hotels are integrating mobile booking, mobile keys, mobile payments and mobile check-in into their operations. Other hotels are emphasizing the in-room experience, boosting bandwidth and upgrading flat screen TVs to more easily interface with guest mobile devices. And though not yet mainstream, there are many exciting technology developments on the near horizon. The Internet of Things (loT) is taking form in some places, and can be found in guest room control systems, voice activation systems, and in wearable sensors that can be used for access and payment options. Virtual reality headsets are available at some hotels so guests can enjoy virtual trips to exotic locations or if off-property, preview conference facilities and guest rooms. How long will it be before a hotel employs a fleet of robots for room service, or utilizes a hologram as a concierge, or installs gesture-controlled walls that feature interactive digital displays? Some hotels are already using augmented reality for translation services, or interactive wall maps, or even virtual décor. This pace of innovation is challenging property owners and brands to stay on top of the latest technology trends while still addressing current projects. The January Hotel Business Review will explore what some hotels are doing to maximize their opportunities in the mobile technology space.