Today’s travelers are techies who know how to use technology to make their travels cheaper, more convenient and more comfortable. Technology allows them to be on the move without having to worry about the itinerary, the route and even the accommodation. Even while on the go, they can choose from several hotels that perfectly suit their budget and requirements without compromising on any aspect. The credit is due to the seamless availability of all Metasearch websites and OTAs on mobile devices in the form of responsive websites and mobile apps. Hotels have also been proactive in sensing the paradigm shift and have shaped their entire strategy to encourage and support mobile bookings. They are now using advanced rate comparison software that can analyze the prices of all the competition and generate the best possible rate for each room in the hotel’s inventory. The hospitality industry thrives on the ability to charge the right rate for the right customer at the right time in order to generate maximum revenue.
In this age of fierce competition and constantly fluctuating demand, manually tracking competitor rates is next to impossible. In addition, the prices of the same hotel room can be different from one OTA to another and even depending on the search location and the type of traveler. Differential pricing is the latest trend in the hotel industry and only an advanced RateShopping tool is a must to stay competitive and profitable in such complex market dynamics.
An efficient RateShopping tool is capable of monitoring the prices of thousands of competing hotels across hundreds of different channels, including OTAs, to carry out detailed competitive analysis that helps a hotel formulate the best pricing strategy among its competitors. However, in the current scenario, just a basic RateShopping tool is not enough to define the right pricing strategy. Smart hoteliers are using many tricks to get high bookings and revenue. Some of them are differential prices, including variable hotel prices by location, that is, prices based on geolocation. Device-based pricing that is based on the device used to book. These combinations have made the task of tracking the rate of competition even more daunting for revenue managers. So, it’s time for you to evaluate your existing RateShopping tool and see if it’s competent enough to provide you with all the competitor rate tracking requirements you need. If not, it’s time to switch to the one with all these features.
Here are some key features of an advanced rate comparison tool that can provide in-depth analysis of competitor prices:
- Pricing based on geographic location: To take advantage of the difference in the ability to pay of guests from different countries, hotels have begun to apply differential prices according to the location (prices based on geographical location) of the client who reserves the hotel. For example, a person in Australia and a person in Brazil are willing to book a hotel in Malaysia, then they will both get different prices for the same room since they belong to different countries. Smart fare shopping tools provide in-depth analysis of what price the competitor is offering to travelers located in different countries around the world. This information is crucial in that a hotel could be selling its inventory for the same price all over the world where the competitor must be gaining by offering lower prices.
- Mobile rates vs desktop rates: With the advent of smartphones, mobile devices have become the most popular device among the masses to search for destinations, hotels, and even make reservations. A traveler is always on the go with no fixed itineraries and needs to make reservations multiple times throughout their trip as they travel from one place to another. The data reveals that around 150 million bookings were made via mobile devices last year and the number continues to rise. Hotels are also trying to encourage travelers to book through mobile devices, especially through mobile apps where they offer discounted prices compared to desktop and mobile sites. This type of device-specific price differential poses an even greater challenge for revenue managers to keep their prices competitive. An evolved RateShopping tool will fill you with intelligence on all existing differential pricing patterns in the competitive field by keeping a perfect touch on the competitor’s mobile app rates. Such insightful information is sure to benefit hoteliers in setting the best prices for their inventory to compete with the lowest prices in the market.
- Member Rates vs. Non-Member Rates: A rewarding and profitable loyalty program is at the heart of any good hotel. Hotels treat their loyal customers differently by offering prices that are not available on any OTA or even on the hotel website. However, smart fare shopping even penetrates such loyalty and Close User Group (CUG) offers that the competition offers to its loyal customers, providing a holistic picture of the competitor’s pricing strategy. This crucial information helps a hotel offer similar rates one way or another, giving you a chance to earn your money. In addition, all information is presented in the desired statistical and graphical format, allowing quick interpretation for instant pricing decisions.
The right pricing strategy can be a crucial differentiator in a hotel’s performance, so having a good amount of competitor pricing knowledge is imperative to generating a winning pricing strategy every time. Implementing a smart and insightful RateShopping tool that tightly integrates with major OTAs, Meta websites along with the hotel website is a half job. This can help any hotel boost its pricing strategy, encourage rate parity, and project the hotel as the best rate provider among the competition.