Setting the right rates for your property can be a challenge when you’re trying to showcase your value but also not lose reservations to your competition. As technology grows, the ability to watch multiple sources and analyze historical data improves and that brings us to price intelligence.
Price intelligence is the merger of business and competitor intelligences. Business intelligence focuses on your historical data and internal operations whereas competitor intelligence focuses on external factors like property down the street’s rates. This is done through pricing intelligence software that constantly watches the data and manipulates it with “what if” scenarios to ensure your rooms are priced right at all times.
The software tracks your occupancy, ADR, and RevPAR, and shows you how those figures have fluctuated over time. That data from price intelligence systems can help you forecast your rates for the future, keep you in line with the competition and market demand, and maximize your ADR.
What you’ll need to take advantage of price intelligence:
Your own data set
You’ll obviously need to put in your occupancy, room types and rates, taxes and fees, and any other data that affects your revenue.
A core group of competitors
You can’t be watching every other inn or hotel in your city! Bring in the data of your core competitors to keep your intelligence analysis accurate and right for your property.
An understanding of your yield management strategy
With yield management, you probably have rules set in your PMS to automatically increase or decrease rates around seasonal trends or holidays. Pricing intelligence software also plays nicely with rules so you can set up your yield management rules to work in tandem with your intelligence software.