Competitor rate data should not be about price wars but used to effectively position your product to optimize the value of your offering. Consumers are not just looking for cheaper deals; they want a good deal. Gathering the right business intelligence will help you manage your rates according to market conditions without affecting the value and prevent your rates from damaging important OTA relationships. In this article we explain how you can use pricing data to manage competitors and your contractual obligations to OTAs. READ MORE

Broadcasting deeply discounted rates through widely visible channels is the best way to start a price war. Competitors have faster access to price information than ever before, and with improvements in technology allowing more rapid price changes throughout all channels, no sooner have you made a change, then you could find your market responding. As soon as that happens, you've lost your opportunity to steal market share and reap the volume benefits that were supposed to offset your discount. READ MORE

While we understand that pricing can create demand and move share within a competitive set of hotels, it is well documented that indiscriminate discounting will not create additional demand but dilute existing revenue streams. RevPAR variance at a hotel - both positive and negative - has a multiplier effect on its profitability and thus it's important to understand how much increased demand will you really need to offset the impact of an ADR drop. Here are a few steps you should consider and questions you should ask yourselves before jumping down the rate spiral in hope of capturing that elusive incremental demand. READ MORE

Dealing with price wars is clearly the nemesis of many hoteliers during a recession - with aggressive and often predatory pricing being deployed in many markets. The truth is that when demand wanes, 5-star hotels steal from 4-star, 4 from 3, 3 from 2, and so on. So what is a General Manager to do when price becomes the weapon of choice? Of course the very first move is to manipulate business mix, not price. But managing mix is foremost a strategic maneuver, and decisions must be made over longer horizons. If you're already embroiled in battle you need to start by asking 2 questions? "Are you selling your product for less than the customer is willing to pay?", and "Are you creating products that don't sell?" If the answer is "yes" to both - it's likely you have a pricing problem. READ MORE

These past few years have been tough on the business-for-sale market. This has put hotel owners ready to sell in a waiting game. Rather than sell for below market price, most smart hotel owners have simply been cutting unnecessary expenses, making ends meet and waiting for the market to rebound. Since the recession hit in the fall of 2008, most hotels have seen a drop in revenues and profits. The ensuing fall in purchase-price valuations only made matters worse. But 2010 saw a slight improvement in the seller market and many experts expect that 2011 will be a break out year for the business-for-sale industry. So is 2011 the year you should consider selling your hotel? READ MORE