What is hotel rate management? Hotel rate management is the process of strategically pricing rooms to attract guests while also maximising revenue. This process requires continuous analysis of market trends, booking patterns, and competitor strategies. It’s not just about setting the right price, but also about adjusting it in response to market changes. This strategy is crucial for enhancing both occupancy rates and the average daily rate (ADR), directly influencing the hotel’s financial performance.  Table of contents Why does hotel rate management matter? Mastering the art of rate ma ..read more

What is a hotel meeting room? A hotel meeting room is a dedicated space within a hotel, specifically designed to host various events, from corporate meetings and workshops to private gatherings and seminars.  These rooms are equipped with modern amenities such as audiovisual equipment, high-speed internet, comfortable seating, and often, catering services to ensure a seamless and productive experience for attendees.  The flexibility of hotel meeting rooms allows them to be tailored to the specific needs of the event, whether it’s a boardroom setup for executive discussions or a theat ..read more

What is competitor based pricing? Competitor-based pricing or competition-based pricing is a data-driven approach where businesses use advanced analytics to set their prices based on competitors’ rates. In the hotel industry, this involves leveraging sophisticated pricing algorithms and software to monitor, in real-time, the room rates of comparable hotels. But it’s not just about matching or undercutting competitors’ prices. This strategy uses statistical models to predict optimal price points that maximise revenue and occupancy. These models factor in variables such as historical booking pat ..read more

What is value added pricing? Value-added pricing, also known as value-based pricing, is a pricing strategy in which a hotel sets its prices based on what a customer believes the value of a room or service to be.  It’s different from most other strategies, in that the price isn’t based on a tangible metric like supply and demand or cost (though cost must still be considered to ensure you’re generating profit, not just revenue). Luxury goods such as designer handbags, fine wines and Swiss watches are prime value added pricing examples. The material and labour costs to produce these goods ar ..read more

What is pricing intelligence? Pricing intelligence, also known as rate intelligence, is a way for hotels to optimise their pricing and profitability. It’s an essential part of a successful revenue management strategy and is implemented via the use of data and pricing intelligence tools. Pricing intelligence relies on data such as market trends, real-time insights, local competitor rates, and customer behaviour patterns. Hoteliers can use this data to quickly analyse conditions and make informed pricing decisions, to help drive more bookings and increase revenue. This blog will cover everything ..read more

What is hotel dynamic pricing? Dynamic pricing is a pricing strategy for hotels that involves changing room rates daily, or even within the day based on real-time market conditions. Taking supply and demand into account, dynamic pricing allows for prices to fluctuate regularly so the hotel can maximise revenue. This pricing option is well suited in today’s market and is one many hoteliers opt to use. For example, in the morning you may have lower rates because your occupancy is low and demand is not strong. However, by evening your supply may have reduced and demand could be growing. Naturally ..read more

What are hotel metrics? Hotel metrics, often referred to as key performance indicators (KPIs), are essential data points that hoteliers use to measure the performance and success of their establishment.  These metrics encompass a wide range of areas, from financial figures like revenue per available room (RevPAR) and average daily rate (ADR) to operational aspects such as occupancy rates and guest satisfaction scores.  By closely monitoring these metrics, hotel managers can gain valuable insights into their hotel’s strengths and areas for improvement.  For instance, a consistent ..read more

What is RevPAM? RevPAM is a key performance indicator hotels use within their revenue management. RevPAM means revenue per available metre. RevPAM is a metric that takes the entire space of the property into the equation, as opposed to simply looking at RevPAR or TrevPAR. This means hoteliers can get even more granular with their revenue management strategies. Other metrics that take into account revenue outside of room charges include RevPOM (revenue per occupied metre) and RevPEC (revenue per event customer). The hotel industry never rests for long, particularly when it comes to revenue mana ..read more

What is a hotel budget? A hotel budget is a financial plan that outlines the projected income and expenditures for a specific period, usually one fiscal year. It serves as a financial blueprint, detailing various revenue streams such as room bookings, food and beverage sales, and ancillary services. The budget also accounts for all types of expenses, including operational costs, capital expenditures, and marketing budgets. It’s a comprehensive document that aligns with the hotel’s strategic objectives, guiding managerial decisions and resource allocation. Table of contents When is the hotel ..read more

What are hotel fees? Hotel fees encompass a range of extra charges guests may pay for amenities and services. However, they are more than just additional charges on a guest’s bill. They can also be strategic revenue boosters that can significantly elevate your hotel’s profitability.  Examples might include resort fees that cover property maintenance, parking fees, or additional cleaning fees if guests bring pets. While hotel fees can be powerful secondary revenue generators or a useful tool to mitigate additional operational costs, there is an art to applying them effectively. Too many ad ..read more