Ratemetrics’ Post

Little & Often. The Winning Strategy for Hotel Pricing Aggregate Intelligence, Inc. : Effective use of local competitor pricing data is crucial for maximizing hotel’s revenue potential - key lies in strategic application of pricing insights #hotels #hoteliers #hotelrevenue #revenuemanagement #hotelpricing #competitorpricing #compset #expertinsights Kris Glabinski – Beata Lutinskaitė – Peter Orford - Peter Orford

Aggregate Intelligence, Inc. : It is imperative for hotel owners, managers, and revenue managers to transcend merely observing trends and instead interpret the actionable opportunities these insights provide. #hotels #hoteliers #hotelrevenue #revenuemanagement #hotelpricing #competitorpricing #compset #expertinsights Kris Glabinski – Beata Lutinskaitė – Peter Orford - Peter Orford

I agree with it 100%. ⬇️⬇️⬇️ In the hotel industry, two key performance metrics often used to measure success are the Average Daily Rate (ADR) and the Occupancy Rate. While both metrics offer valuable insights, focusing on ADR is generally more advantageous than prioritizing occupancy rates alone. ADR represents the average revenue earned per room on a given day, reflecting the hotel’s pricing strategy and overall profitability. By optimizing ADR, hotels can increase their revenue without needing to fill all rooms, as it focuses on maximizing the price per room rather than the number of rooms sold. This allows hotels to maintain a higher standard of service by not overloading their staff, which often happens when occupancy is maximized. On the other hand, an emphasis on the occupancy rate can lead to aggressive discounting to fill rooms, which may hurt the hotel's brand image in the long term. It may also result in lower-quality guests who contribute less to ancillary revenue streams like dining and events. Ultimately, focusing on ADR allows for a more balanced and sustainable approach to profitability. While occupancy rates matter, ADR ensures that hotels are not only filling rooms but doing so in a way that maximizes revenue and maintains brand standards. This metric helps hotels adjust pricing according to demand, leverage peak seasons, and maintain profitability during low-demand periods.

Value Based Pricing: Are You Charging What Your Rooms Are Worth? Topline - Expert Revenue Management : Value-based pricing flips the script. You look outward instead of inward. It’s not what the room costs you; it’s what the experience is worth to your guest #hotels #hoteliers #hotelpricing #hotelrevenue #revenuemanagement #valuebasedpricing #expertinsights Connor Vanderholm, MBA

Pricing decisions in the hotel industry can feel like a constant tug-of-war between staying competitive and keeping profits up. This blog post dives into how we can use smarter strategies - like insights from game theory - to avoid the common trap of price wars. I hope you find this helpful, whether you're in hospitality or just curious about how pricing dynamics work!

“They dropped their rates again?” Hotel pricing doesn’t have to be a race to the bottom. Our latest blog post explores how game theory and dynamic pricing can help hotels avoid destructive price wars and improve profitability. Learn how smart, data-driven pricing strategies can keep your hotel competitive without sacrificing long-term revenue. #HotelManagement #RevenueStrategy #DynamicPricing #GameTheory #PricingStrategy #Profitability #HotelRevenue

Steps to Take If Your Hotel Plans on Raising Prices https://ift.tt/OjWhcIY Raising prices in the hospitality industry can be a delicate process that requires careful planning and execution. While increasing prices can help hotels improve profitability and maintain competitiveness, it’s essential to implement pricing changes strategically to minimize negative impacts on guests and the business. Here are the steps hotels should take if they plan on raising prices. Conduct Market Research Before implementing price increases, hotels should conduct comprehensive market research to assess the competitive landscape, demand trends, and competitors’ pricing strategies. Analyze pricing data for similar properties in the area, considering factors such as location, amenities, and service offerings. Understanding market dynamics will help hotels determine the appropriate pricing strategy and positioning relative to competitors. Evaluate Value Proposition Evaluate the hotel’s value proposition to determine how guests will perceive price increases. Assess the quality of amenities, services, and guest experiences offered relative to the proposed price changes. Consider factors such as location, reputation, brand positioning, and target market preferences. Ensure that the perceived value justifies the proposed price increases to minimize guests’ resistance. Communicate Effectively Transparent communication is key when implementing price increases to maintain trust and goodwill with guests. Clearly communicate the reasons behind the price adjustments, such as inflation, rising operating costs, or investments in property improvements. Highlight any enhancements or added value that guests can expect to receive as a result of the price increases, such as upgraded amenities or enhanced services. By providing context and rationale for the changes, hotels can alleviate concerns and reduce the likelihood of negative guest reactions. Implement Gradual Increases Rather than implementing significant price hikes simultaneously, consider gradual increases over time. Incremental adjustments allow guests to acclimate to the new pricing structure gradually and minimize sticker shock. Monitor guest feedback and market response to each price adjustment to assess the impact on demand and adjust pricing strategies accordingly. By taking a phased approach to price increases, hotels can minimize disruption and optimize revenue growth. Monitor Competitor Behavior To remain competitive in the industry, stay vigilant of competitor pricing strategies and market dynamics. Continuously monitor pricing trends, promotions, and changes in the competitive landscape to inform pricing decisions. Assess how competitors are positioning themselves and adjust pricing strategies accordingly to maintain competitiveness while maximizing profitability. By staying informed and agile, hotels can adapt to changing market conditions and optimize pricing strategies for long-term...

U.S. hotel industry profitability trends in 2023 provide a yardstick for predicting revenue metrics this year. Total industry revenues and profits were well beyond 2019 as pricing power outweighed the impact of weakening demand. Read on. #hotelindustry #hospitality

https://buff.ly/4i0cUdu Why Raising Prices in High-Demand Periods Isn’t Exploitation Lybra Tech : By understanding and implementing demand based prices, you can create a business model that meets market needs and enhances guest satisfaction #hotels #hoteliers #hotelpricing #demandbasepricing #revenuemanagement #hotelrevenue #dynamicpricing #expertinsights Fulvio Giannetti – Stefano Sciamanna – Nicolò Rolle

Power of Sentiment Analysis to Upgrade Hotel Guest Experience. https://lnkd.in/da2RJFqt #hotels #hotelguest #guestexperience #guestsentiment #guestreviews #hotelreviews #sentimentanalysis #hotelbooking #directbooking #onlinebooking #hotelrevenue #revenuemanagement #onlinemarketing #digitalmarketing #hotelmarketing #sales #marketing #reservations #bookingengine #channelmanager #otas