Management information system
Ensure the assessment of competitors’ pricing is comprehensive.
There is more to look at than simply what rate your competitive set is charging. Helsel suggested evaluating the outside influences that would affect the market conditions, such as weather, booking lead time and nearby holidays. She also said competitors could have multiple rates and it is important to look at the various rate structures, such as refundable vs. non-refundable and rates for the different room types and different amenities.
Basically, it comes down to comparing apples to apples when adjusting rate based on competitors’ strategies. “Pay close attention to competitors’ descriptions to ensure comparisons are valid,” Helsel said.
2) Apply length-of-stay restrictions and price appropriately.
Many data reports offer insight into how competitors set rates over different lengths of stay. Hotels should pay close attention to their pricing strategies and make sure they are competing on similar levels. For instance, when adjusting rates for length-of-stay requirements, monitor how the competitive set has adjusted their rates.
3) Incorporate historical pricing intelligence.
“History is very important,” Helsel said, “both long term and short term.”
When looking at historical data, make sure to adjust for any anomalies in that timeframe, Helsel suggested. For example, holidays oftentimes fall on different dates and need to be taken into account when comparing year-over-year data. “Looking at the last five years will give you a better picture and you will have that information in your reports,” Helsel said.
When looking at recent history, such as the past month, pay close attention to factors that might affect pricing, such as lengthening booking windows, economic conditions, weather—anything that could cause data to be different year over year. “Booking windows do change based on type of property and location,” Helsel said.
4) Always consider the price/value equation.
The basics
There is more to look at than simply what rate your competitive set is charging. Helsel suggested evaluating the outside influences that would affect the market conditions, such as weather, booking lead time and nearby holidays. She also said competitors could have multiple rates and it is important to look at the various rate structures, such as refundable vs. non-refundable and rates for the different room types and different amenities.
Basically, it comes down to comparing apples to apples when adjusting rate based on competitors’ strategies. “Pay close attention to competitors’ descriptions to ensure comparisons are valid,” Helsel said.
2) Apply length-of-stay restrictions and price appropriately.
Many data reports offer insight into how competitors set rates over different lengths of stay. Hotels should pay close attention to their pricing strategies and make sure they are competing on similar levels. For instance, when adjusting rates for length-of-stay requirements, monitor how the competitive set has adjusted their rates.
3) Incorporate historical pricing intelligence.
“History is very important,” Helsel said, “both long term and short term.”
When looking at historical data, make sure to adjust for any anomalies in that timeframe, Helsel suggested. For example, holidays oftentimes fall on different dates and need to be taken into account when comparing year-over-year data. “Looking at the last five years will give you a better picture and you will have that information in your reports,” Helsel said.
When looking at recent history, such as the past month, pay close attention to factors that might affect pricing, such as lengthening booking windows, economic conditions, weather—anything that could cause data to be different year over year. “Booking windows do change based on type of property and location,” Helsel said.
4) Always consider the price/value equation.
The basics