Travelers today are technical freaks who know how to use technology to make their journey cheaper, convenient and comfortable. Technology allows them to stay on the move without having to worry about itinerary, route and even accommodation. Even while on the move, they can choose from different hotels to suit their budget and their needs without compromising on anyone in front. The credit goes to the seamless availability of all Metasearch sites and OTA's on mobile in terms of responsive mobile websites and mobile applications. Hotels have also been proactive to feel the paradigm shift and have molded their entire strategy to encourage and support mobile bookings. They now use advanced rate shopping software that can analyze the price from the whole competition and churn out the best possible rate for each room in the hotel's inventory. Hospitality industry thrives on the ability to charge the right rate for the right customer at the right time for the purpose of earning maximum revenue.
In this age of tough competition and constantly fluctuating demand, manual tracking of prices from the competition is almost impossible. To add it, the prices for the same hotel room can be different from one OTA to another and even at the seaside resort and type of traveler. Differential pricing is the latest trend in the hotel industry, and only an advanced RateShopping tool is no less than a necessity to remain competitive and profitable in such complex market dynamics.
An effective RateShopping tool is able to monitor the prices of thousands of competing hotels on hundreds of different channels, including OTA's, to perform detailed competition analysis that helps a hotel to formulate the best price strategy among its competitors. But in the current scenario, only a basic RateShopping tool is not enough to nail the correct pricing strategy. Smart hotel guests use many tricks to get high orders and revenue. Some of them are differentiated rates, including varying hotel rates by location, ie. Geolocation based pricing. Unit-based pricing as pricing based on the device used to order. These combinations have made the challenge of competitive tracking more even scary to earnings managers. Therefore, it's time to evaluate your existing RateShopping Tool and see if it's enough to provide you with all the competition tracking requirements you need. If not, it's time to switch to the one that has all these features.
Here are a few key features in an advanced handler tool that can provide a thorough analysis of the pricing of competitors:
- Geo-based pricing: To tap the difference in payment options for guests from different countries, hotels have started differentiated pricing based on the geo-based pricing of the customer booking the hotel. For example A person in Australia and a person in Brazil are willing to book a hotel in Malaysia, so both will get different prices for the same room as they belong to different countries. A smart rate shopping tool provides in-depth analysis in what price the competitor offers to travelers located in different countries around the world. This information is crucial in the sense that a hotel can sell its inventory at the same price around the world where the competitor has to win by offering fewer prices.
- Mobile rates against desktop rates: With the advent of Smartphone's, mobile devices have become the most popular device among the masses to browse destinations, hotels and even make bookings. A traveler is always on the go without regular travel plans and must make bookings several times throughout his journey as he travels from place to place. Data reveals that around 150 million bookings were made through mobile devices last year and the number is increasing. Hotels also try to encourage travelers to book through mobile, especially through mobile apps, where they offer discounted rates compared to desktop and mobile sites. This type of device-specific differentiated pricing poses an even greater challenge for revenue managers to keep their prices competitive. A developed RateShopping tool will brill you with intelligence on all such differentiated price patterns found in competitive arena, by keeping a perfect pressure on your competitor's mobile applications. Such insightful information should be for hotel guests to determine the best prices for their inventory to compete with the lowest prices on the market.
- Memberships vs. Non-member Interests: A rewarding and profitable loyalty program is at the heart of any good hotel. Hotels treat their loyal customers differently by offering them prices that are not available at OTA or even the hotel's own website. But smart rate shopping even insists on such loyalty offers, and the Close User Group (CUG) is offered by competition to their loyal customers, giving a holistic picture of the competitor's pricing strategy. This important information helps a hotel to offer similar rates in one form or another and thus give it the rubbish run for their money. In addition, all information is presented in a desired statistical and graphical format, enabling rapid interpretation so that immediate price decisions can be made.
The right pricing strategy can be a crucial differentiator in a hotel's performance, so it's important to have a reasonable knowledge of the competitor's pricing for each time reaching a winning pricing strategy. Implementing a smart and insightful RateShopping tool that is closely integrated with all major OTAs, Meta websites along with the hotel's own site is a half-finished job. This can help any hotel to increase its pricing strategy, fetal rate parity, and project the hotel as the best betting provider among the competition.