It’s a familiar scenario – and as a former hotelier, I’ve seen it played out many times before.
Across the hospitality sector, we’re trained to watch our competitors and react when they make rate changes. It’s a game of “follow the leader” – a game that often leads to lower average daily rate (ADR) and under-performing revenue per available room (RevPAR).
NB: This is an analysis by Rich Maradik, founder of nSight For Travel.
So how can hotels be smarter about rate? There’s a new way to manage rate that won’t keep you looking over your shoulder.
Hotels are beginning to get bottom-line value by abandoning their competitor-focused pricing in favor of strategies driven by consumer demand. This approach factors in how dynamic consumers search and book hotels online and the impact it has on rate. It’s simpler than you think, but it requires a step back to see the whole picture.
Today it is possible to answer the question that travel marketers have been asking for years: “What do consumers who are actively shopping me and my competition look like, and how can I reach them?”