Why hoteliers should forecast Market demand and dynamically control the Rate?

Why hoteliers should forecast Market demand and dynamically control the Rate?

  • Posted by webcrs
  • On October 14, 2015
Revenue management in hotel industry is important, considering various distribution platform available in the market, today. When the hoteliers do business in a perfectly competitive industry, they have to carefully determine their prices in the market.Hoteliers can increase room occupancy rates and enhance business profits only when they have competitive rates. Captive product pricing can help hoteliers drive customers better, this can be done only by constant evaluation of the market and fine tune ones own business strategy.

By forecasting the demand and evaluating the pricing strategies, hoteliers can dynamically control rates. This way, they can ascertain higher room occupancy rates and increased business profits.

With a dynamic pricing strategy, the hoteliers can control the rates of their properties for different periods and seasons. By forecasting demand well in advance, the hoteliers can allocate rooms at their convenience. They can hide/block (hold back) certain rooms, limit/restrict visibility on different online travel portals and third-party booking sites for a specific period and release the properties, only when the demand is very high. In this manner, with higher demand the hoteliers can quote higher price for their properties and generate more revenue.

By estimating demand, the hoteliers can even create special rates, discounts, packages and offers for the early/advance bookers for improving customer engagement rate and in creating brand loyalty.

In order to increase the occupancy rates, most hoteliers try to sell their unsold inventories/properties for lower cost and incur loss. However, by forecasting demand in advance, the hoteliers need not sell their unsold inventories at less cost, any more. Through the revenue management tool incorporated to the hotel’s property management system, the hoteliers can monitor and track the market competitors, their pricing strategies and also analyze the buying behaviour of customers. The hoteliers can identify the factors that influence the buying decision of customers and extend competitive rates, based on preferences (willingness to pay measures) and seasonality.

With hotel revenue management system, the hoteliers can do effective competitor price comparison. They can evaluate their old pricing policies and based on the market demand, alter and devise a better pricing strategy. By knowing, what the future holds one can plan and make better decisions and hotel revenue management tool is one such that helps the hoteliers have a look into the future, to plan things in a better way.

And the hoteliers that want to gain a competitive edge in the market should delay no further in adopting the right ‘competitive analysis and revenue management tools’, for their business. WebCRS from WebCRSTravel Technologies Pvt Ltd has been helping the hoteliers with effective market intelligence, yield and revenue management on real time basis. It gives hoteliers a competitive edge in forecasting the demand and apply revenue management rules in real time

With WebCRS, the hoteliers determine better product prices in the each distribution channel and ensure increased profit margins. WebCRS has been transforming the way, the hoteliers do business today.

For more information on WebCRS, visit www.webcrs.com or write to info@webcrs.com.


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