What is hotel price monitoring?
Hotel price monitoring is a crucial practice that involves tracking the prices of hotel rooms, both within your own portfolio and across competitors. This data-driven approach enables you to make informed pricing decisions, ensuring you remain competitive in the market while maximising revenue.
Table of contents
- What is hotel price monitoring?
- Why is hotel price monitoring important for hotels?
- Hotel price tracking: How to monitor hotel prices online
- Benefits of tracking hotel prices
- How to find the best hotel price tracker
Why is hotel price monitoring important for hotels?
Pricing is a foundational factor that plays a pivotal role in attracting guests and ensuring the financial viability of your establishment. It’s only right, then, that successful hoteliers invest significant time, energy, effort and capital in mastering it.
Hotel price monitoring offers many benefits, allowing smart hoteliers to better understand the market, make better decisions, invest in valuable projects and improvements, aim for a future filled with long-term growth, and much more.
In short, mastering hotel price monitoring ensures you have the details and data you need to stay ahead of competitors without sacrificing your own revenue, arming you with the knowledge you need to make smarter decisions around how you price your rooms and services.
Hotel price tracking: How to monitor hotel prices online
In this digital age, there are many tools that simplify the process of hotel price tracking. These tools automate the mundane task of price tracking, freeing up time for you to focus on other crucial aspects of hotel management.
The key is to find a tool like SiteMinder that integrates seamlessly with existing hotel management systems, and is customisable to cater to your specific needs and constraints of medium-sized hotels.
Benefits of tracking hotel prices
Monitoring hotel prices isn’t merely a tactical move but a strategic endeavour that brings numerous benefits to the table:
Understanding market dynamics
The pricing landscape in the hotel industry is in a state of constant flux, influenced by factors such as seasonality, local events, and competitor pricing strategies.
By monitoring hotel prices, you can glean insights into these market dynamics, which in turn, enables you to adjust your pricing strategies accordingly – whether you rely on direct bookings or lean on your network of OTAs via a channel manager.
Optimising pricing strategies
Finding the optimal price point is a delicate balancing act. Price too high (either directly from room costs or via hotel fees) and you risk alienating potential guests; price too low and you may leave revenue on the table.
Hotel price monitoring provides the data necessary to identify the sweet spot that maximises revenue without deterring guests.
Competitive benchmarking
In a market teeming with choices, staying competitive is paramount. Hotel price monitoring allows for a real-time comparison with competitors’ pricing, ensuring that your establishment remains an attractive option for potential guests.
Enhanced guest satisfaction
Offering competitive prices not only attracts guests but also augments perceived value, which in turn, enhances guest satisfaction. A satisfied guest is more likely to return, recommend your hotel to others, and leave positive reviews, all of which are invaluable in building a strong brand reputation.
Data-driven decision making
In the modern age, data is king. Hotel price monitoring furnishes you with a robust data foundation to make informed decisions. Whether it’s setting room rates or devising special offers, having a clear understanding of the pricing landscape facilitates smarter, data-driven decisions.
Revenue management
Effective revenue management is a cornerstone of a successful hotel operation. By monitoring and analysing pricing trends, you can devise strategies that maximise revenue during peak periods and keep the cash flow steady during off-peak times, offsetting your hotel costs and staying profitable year-long.
Resource allocation
With insights derived from price monitoring, you can allocate resources more efficiently. For instance, during high-demand periods, resources can be channelled to ensure optimal guest experience, whereas, during low-demand periods, efforts can be directed towards marketing and promotional activities.
Long-term growth
Consistent hotel price monitoring and the subsequent insights gained lay the groundwork for sustainable growth. It aids in understanding market trends, guest preferences, and the effectiveness of pricing strategies, all of which are crucial for making long-term strategic decisions.
How to find the best hotel price tracker
Finding the right hotel price tracker is crucial for effective price monitoring and subsequently, for the financial success of your hotel.
The ideal tool should not only track prices but also provide actionable insights that can be utilised for strategic decision-making. Here are some key factors to consider:
- Ease of integration – Look for a tool that seamlessly integrates with your existing hotel management systems, thereby streamlining the process of price tracking and analysis.
- Customisation – Every hotel is unique, and a one-size-fits-all solution may not cater to your specific needs. It’s crucial to choose a tool that can adapt to you – not the other way around.
- Real-time data – In a fast-paced industry, having access to real-time data and hotel price alerts is invaluable. Any hotel price tracking tool worth its salt – and your investment – must have up-to-date information feeding its insights.
- Automation – Manually tracking prices can be tedious and time-consuming. With pricing automation, you can set predefined rules for price adjustments based on market conditions, ensuring your pricing remains competitive without the need for manual intervention.
- Comprehensive reporting – Having a myriad of data at your fingertips is great, but understanding that data is where the real value lies. SiteMinder’s robust reporting features, for example, translate data into actionable insights, aiding in informed decision-making.
- User-friendly interface – A complex, hard-to-navigate interface can deter even the most tech-savvy individuals. Any software you and your staff use must be streamlined, with smart dashboards that don’t conceal useful information with screeds of unnecessary data and complex navigation.
- Customer support – Reliable customer support to assist you whenever you face challenges or have queries is indispensable. This is especially true for hotels with multiple sites and large numbers of rooms; the greater the complexity of your business, the more important it is to have expert, responsive support.
- Training and resources – Having a wealth of training resources at your disposal can significantly enhance your understanding and utilisation of the price tracking tool. No matter how advanced a price tracking tool may be, it’s worthless if it doesn’t have the tutorials and guidance necessary to use it effectively.
Improve pricing strategies with hotel price monitoring and boost room revenue
In the fiercely competitive hotel industry, making informed pricing decisions is crucial for success.
With the right hotel price monitoring strategies and tools like those offered by SiteMinder, you can stay ahead of the curve, ensuring more bookings, better control over pricing strategies, and ultimately, increased revenue.
Here’s just some of what you can expect from our software:
- Real-time price monitoring: SiteMinder provides real-time monitoring of room rates across various channels, enabling you to stay updated with the current market pricing trends.
- Dynamic pricing automation: With SiteMinder, set up dynamic pricing rules based on real-time market conditions, ensuring your prices remain competitive and profitable.
- Intelligent revenue analytics: Harness the power of data analytics to understand pricing performance, helping in making informed decisions to maximise revenue.
At first I thought it was just a myth that using SiteMinder could boost revenue. But it turned out to be true. Revenue did increase, and we are also more efficient in terms of time; we can get more work done. The Phala Group
About SiteMinder
SiteMinder (ASX:SDR) is the world’s leading open hotel commerce platform, empowering hotels and accommodation providers to sell, market, manage and grow their business. SiteMinder’s innovative online platform offers hotels and accommodation providers a comprehensive range of products and solutions to manage and streamline the distribution of their rooms across a wide selection of direct and indirect channels, take bookings from guests and communicate with guests. The global company, headquartered in Sydney with offices in Bangalore, Bangkok, Barcelona, Berlin, Dallas, Galway, London and Manila, generates more than 100 million reservations worth over US$35 billion in revenue for hotels each year. For more information, visit siteminder.com.
