Pricing Your Hotel Rooms 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 Beyonce is in town on that night, so you pump up the rate a few bucks more. Seems like the right thing to do, right?
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.
New Rules of Loyalty