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Pricing Intelligence and Competitive pricing

Pricing Intelligence and Competitive pricing

Pricing intelligence and competitive pricing in revenue management has two roles business intelligence and competitor intelligence. Together, they combine to create a robust knowledge set to make smarter pricing decisions. Business intelligence focuses on different time frames, past, present, and future. Competitive intelligence focuses on external metrics related to your competitors and their performance. Typically, the metrics used to gauge competitor performance are the same as one would use to gauge their performance. The pricing intelligence and competitive pricing approach of Revenue FACTORY allows our partner hotels to collect data and use it to your advantage. One way to do this is through rules. You set up a rule that triggers your rates to increase or decrease based on market demand. Pricing Intelligence and Competitive pricing levers

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Increase In Revenue

100%

Positive Feedback

80%

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Pricing Intelligence and Competitive pricing levers

Pricing intelligence in hospitality business consists of tracking, monitoring and analysing pricing data to understand the market and make educated pricing changes at speed and scale. Price intelligence is important because retail pricing is a fast-paced, competitive, and ever-evolving world where the right or wrong price has a direct impact on sales and profitability. Therefore, the end goal of pricing intelligence Revenue FACTORY follows is to ensure prices always meet a core business objective: either to be competitive, protect a margin, establish a reputation, or something else. Pricing intelligence is important because it helps you achieve your goals.

Forecasting based pricing:

Forecasting based pricing is all about tweaking our partner hotel’s room price while forecasting the number of rooms that will be available for future dates and it is based on historical data from the hotels. Revenue FACTORY’s strategic approach in forecasting allows us to make necessary changes in our partner properties’ room rates based on demand and expected occupancy.

Competitor based pricing:

Revenue Managers will be able to come up with a competitor-based hotel room rate pricing strategy only when they understand the rates your competitors are selling their rooms at. When Revenue FACTORY talks about competition, we consider hotels that come in your segment and star category. Revenue FACTIORY compares our partner hotels rates with their competitors’ rates this will help you to understand what customers are already paying and how much they will be willing to pay.

Re-pricing Approach:

Re-pricing is the act of listing a product for a different price than it is currently listed at. In hospitality, re-pricing is important for many of the same reasons pricing intelligence is important as hotels operate in a competitive market. Beyond that, when customers are in OTAs, will know if our prices aren’t competitive. With our Re-pricing approach our partner hotels will have the pricing intelligence and stay competitive in the industry.

Value based pricing:

A value based pricing approach in revenue management is all about applying pricing intelligence based on how your customers value your hotel and its rooms and fix the price. Revenue FACTIORY’s strategic approach of value based pricing helps our partner hotels to sell rooms in its actual value rather than selling the same for wrong price.