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In a context of heightened competition between different hotel distributors, all seeking to increase their market share, data analysis and their wise usage becomes a tool that can make a difference in favor of the distributor who will know how to get the most out of it. To this end, the use of a dynamic pricing tool to adapt rates to the situation a hotel is in is becoming more and more widespread.
What is dynamic pricing ?
Finding rates that maximize the revenues of their business is a daily challenge that hotel managers face in view of the constantly changing market demands.
Facing this situation, the dynamic pricing that fluctuates according to the moment when it is solicited, predicts the best available rates and adapts them according to the moment, the season, or the customer. Thus, hotel managers can modify their pricing strategies at any time by using sophisticated technologies that take market conditions into consideration in real-time. This allows them to make informed and precise decisions in order to optimize their profitability and thus make a considerable profit with regards to time and money.
The benefits of dynamic pricing
The main benefit of dynamic pricing is matching the rate of the marketed rooms to the demand. This way, the rates will change depending on the seasons, the monthly and weekly fluctuations, as well as daily and hourly changes. Dynamic pricing tools allow to modify room rates every day or every hour, or even to the minute. They allow to find the right balance between underpricing and overpricing by adjusting the room rates based on supply and demand. This allows to build an effective pricing model that best suits each type of institution.
Dynamic pricing to maximize your revenues
The ultimate goal of using dynamic pricing tools is maximizing the profit generated by each customer. Changing prices in peak season and lowering prices in the off season is not enough to increase revenue. The hotel manager must take into consideration the situation as a whole and identify in advance the elements of his environment.
The greatest asset for implementing a strategic pricing plan of quality is adapting its services to competing events, offering deals and value-added services to the customer, and using historical data.
In conclusion, dynamic pricing is a tool that has become essential for hotel managers to stand out from their competitors. By using this tool, professionals in the industry are armed with strong weapons to anticipate any changes in their market, and to control the near future of their hotel.