Understanding Dynamic Pricing and Implementing it for your Hospitality Business

 

Understanding Dynamic Pricing and Implementing it for your Hospitality Business

Finding rates that maximize revenue is an everyday struggle in hospitality industry with the changing market demands. Whether you are a hotel owner, or you run a serviced apartment, guest house, PG/hostel, vacation rental, etc., this problem is faced by all of us.

 How does dynamic pricing work?

This time-based pricing model projects the best available rates at the right time for the right season and for the right guest.

·        Alter pricing strategies using sophisticated technologies

·        Save time and cost

·        Make informed and accurate decisions to optimize profitability

What can Dynamic Pricing do for your Hotel Revenue?

You don’t need to struggle with rate management every hour or day. Opt for a pre-determined dynamic pricing system. Dynamic pricing is useful to aim for maximum profit in a competitive industry. Automation of the process makes it easy!

·        Dynamic pricing allows you to increase room revenue, Average Daily Rate (ADR) and RevPar (revenue per room)

·        The common method of ‘low-to-high’ pricing can be flipped to ‘high-to-low’

·        Observe competitor pricing to match the ever-changing price trends in minutes.

·        Use intelligent dynamic pricing software for yout property to compare prices and track room inventory.

A revenue manager must know the pulse of the situation to implement the dynamic pricing strategies in hospitality industry. Automate and tweak prices in real-time with Finner PMS. Finner cloud-based PMS helps with implementing accurate pricing strategies in hospitality business. You can solve the challenge of selling room inventory at highest possible rates.

The dynamic pricing system must be followed to take the right pricing decisions while anticipating market demands. Finner cloud-based property management system (PMS) includes an integrated revenue management system that gives the much-needed advantage to implement dynamic pricing for hotels, serviced apartments, guest houses, vacation rentals, hostel/PG, etc.

Fixed Pricing v/s Dynamic Pricing

Have you always used the fixed pricing strategy? Find out the difference.

Fixed Pricing for the Hospitality Industry:

·        A constant price is maintained leaving no scope for a price bargain or negotiation.

·        It restricts the owners’ potential to increase profit by the volume sold.

Dynamic Pricing for the Hospitality Industry:

·        This is a time-based pricing. Price your rooms as per the time.

·        Increase/decrease room rates as per the demand or the lack of it.

·        Find an effective pricing model that works best for your property.

·        Use automated systems to collect accurate data to forecast accurately, increase RevPAR.

·        Use Dynamic pricing strategies to work around room rates by watching competitor pricing using technology.

Finner PMS with its smart tools lets you make quick decision in real-time. The integration of a Channel Manager and a revenue management system makes this an all-in-one solution.

Avoid the struggle to determine rates based on assumptions. Implement dynamic pricing for hospitality business with technology. Manage updates quickly to determine the sales price. Use the complete accuracy of a cloud-based property management system like Finner.

Use Finner PMS and design your dynamic pricing and revenue management on factors such as location, demand, rooms sold, changing seasons and much more. Connect with Finner PMS today!

 

 

 

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