How Dynamic Pricing works
Our Dynamic Pricing feature allows you to flex your rates automatically depending on your occupancy levels. This Hotel Perfect module makes revenue management easy and accessible to every business, no matter how big or small.
This is all managed for you by the software and you can set this up as far in advance as you like. You can set variations to cover particular date ranges to plan for local events or busy periods.
Integration at its best
When Dynamic Pricing is combined with our powerful Channel Management solution, not only will channels such as Booking.com and Laterooms.com be automatically updated with your occupancy levels, but the flexible prices you have set up will also get pushed to your own Direct Booking Engine on your website. This means no more daily updating of availability and no more awkward overbooking situations!
If you would like to know more about what Hotel Perfect software can do for your business please contact email@example.com or call us on 0843 309 1601.
Revenue Management is the application of disciplined analytics that predict consumer behavior at the micro-market level and optimize product availability and price to maximize revenue growth.Wikipedia's Definition
Revenue Management Application Tip
The most basic form of revenue management deals with price and volume. You have a fixed number of hotel rooms that you can sell at any one time (volume). You yourself cannot easily increase the real demand for hotel rooms in your area, but we all know there is a relationship between the level of demand and the price of something (if something is cheaper you are more likely to buy it), so you can artificially boost the demand for your hotel rooms by selling at a more attractive price.
The key here is to make sure that you only sell those rooms at a lower price to those people that wouldn’t normally have booked at your hotel otherwise. Remember that there will always be people prepared to pay your standard rate and others who will be prepared to pay a premium rate. The whole idea of revenue management here is that you only sell the cheaper rooms to those people that would not have otherwise booked. Then to sell rooms to the people willing to pay normal price at that normal price while also still selling rooms at a premium to those who are happy to pay more.
The simplest way to do this is to link your rates (prices) to the occupancy level (volume) of your hotel. Hotel Perfect’s Dynamic Pricing module does exactly that.