Towards Revenue Management for Hotels
Whether you run a Group of Hotels in India or is into a business of part-time BnB for money, inventory pricing is very important factor to maintain profitability out of every property you manage. Doing all the required analysis on daily basis is a headache and then down the line all the work will give you more stress too if it gives you money anyway, even if you’re not making a profit stress is a bi-product that you have to take with the business. I’ll try to address the problem of managing stress easily for ease of business to earn easy profit.
It was an idea that prices for a particular product or service can change in real-time depending on demand, supply and other factors. So if I quote this simply the price of an Ola or Uber ride goes up if the demand is high.
This concept has been in industry since long and is now expanding its wings to multiple sectors including railways (here) and hospitality sector. In this blog I would discuss how we at nodal.direct are trying to build our Dynamic Pricing Engine for hotels, primarily focusing on *** hotels.
What is Nodal Direct?
Nodal Direct is a Hotel Technology company with over 50 active clients across website development, online sales consulting and other services. The offered services are used by Hotel owners, Service Apartments, BNB establishments and small Guest houses worldwide.
Hotels now are taking aggressive step in terms of having more flexibility in the types of rates they have and how they want to bucket different rates.
For example: The month of November and December are highly demanding in terms of hotel accommodation for metro cities whereas holiday destinations are prone to customer floods in summers and at new year’s example popular hill stations and Goa respectively.
Starting form a manual process where the sales or revenue managers have to play within 5 to 10 types of rate buckets, now they have hundreds indeed.
In order to accomplish this task our research methodology takes into account a number of factors including current bookings statistics, market research and historical occupancy data of the property, all of which is supplied to a machine learning algorithm.
Most hotels already take into account those same factors for pricing their inventory, but at Nodal we do things differently for giving the best suitable prices to hotel business owners using our proprietary formula by which they are able to generate more revenue per room or an apartment.
Care about what’s going on in Indian Region?
Checkout your Hotel price recommendations below.
Dynamic Pricing for Perch Group of Hotels
What is Perch?
Perch Service Apartments is a professionally managed company operating Serviced Apartments, Villas and Luxury Suites and Guest Houses in Gurgaon & Goa.
Perch Service Apartments is one prestigious client of nodal.direct where we have deployed our full fledged services, after all the smooth functioning now we are focusing on their dynamic pricing module where the customers of Perch will likely begin to see those rate changes when they’re looking to book a stay.
It isn’t always about raising the hotel prices — it often leads to lowering them too according to various metrics.
Our solution for the clients assures the quality, where we not only make money for the hotel owners, but also make sure that guests are getting the best price too.
The system is thrashing to find the optimum point where the revenue per available room is maximized.
Testing the Claim
The best way to understand about Nodal dynamic pricing is:
If you’re looking close to the stay date and the occupancy is already high at the hotel, prices are set to change high.
- Market Research gives us the regional prices of the properties in target region.
- Occupancy matrix gives us both metrics historical and current occupancy.
Bottom Line and Conclusion
Recommending Prices is not only an innovative mechanism but also requires a lot of analytical and consumer research, we at nodal.direct have leaders with significant experience in travel and hospitality industry. We have thorough understanding of what is the optimal model to adapt for day to shop for a hotel to respond nimbly to market trends, and thus is within the bounds of what consumers already accept as market dynamics and even embrace it.
Vivek Gupta: https://www.linkedin.com/in/vivekg-/
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