Your Competitors Update Rates 24/7. Do you?

 

Now, pricing is not a one-day task. It becomes a 24/7 strategy.

With the changing world and the developing hospitality industry with AI, guests' behaviour is also changing. Nowadays, most of the guests search and compare hotels and their rates online and book hotels from OTAs, and a large number of guests also prefer to book last-minute bookings and compare different rates before confirming their stay.

If observe, then we will see that every minute somebody is booking the hotels, searching and comparing the rates on mobile during commutes, last night or a week in advance, while they plan to get away. It means competitors are adjusting their room price accordingly and multiple times per day across all distribution channels, like Expedia, MMT and others.

If you are updating the rates once a week or after a few days, then you need to think again. Isn't it worse for the hotel? And is moving slowly good? Moving slowly means losing your everyday Revenue. Remember that the hospitality industry never sleeps; it's always on. For example, if any concert is announced, then see how searches surge, or if the weather changes, then you will also get a sudden dip. If any local event starts, then you will get last-minute demand increases. Because of that, competitors are dropping the rates to fill their unsold rooms and try to generate more Revenue. Hotels which are listed on Expedia or traditional chains are adjusting their pricing constantly based on their occupancy, market demand, booking pace and competitors' positions.

Are you doing the same? Think.

Thinking that it’s aggressive pricing, then wait a second. It’s not aggressive pricing; it’s strategy and precision that the hotel industries are following. They are selling inventory because unsold inventory disappears every night. In short, time is everything.

Fixed rates create slow Revenue leaks. Suppose there is demand in the market because of a conference or any concert announcement and you kept your rate the same. Don’t you think you can sell your room quickly but at the last date rate and for the short term? Like, when you have full occupancy, it feels like success. But that can hide the missed Revenue opportunities. On the other hand, when demand is normal in the market and competitors slowly decrease the rates to pick up the bookings, your rates are the same. Remember that holding rates too long can result in empty rooms and generate zero revenue; it doesn't matter how strong your brand is and what amenities you provide. But dynamic pricing aims to capture higher ADR during high demand and during low demand, it preserves occupancy.

By observing today’s guests, we can analyse how fast and highly informed decision-makers our guests are. Before bookings, they compare the hotel's website, OTAs, and neighbouring properties within seconds; also, they look for the best perceived value at the same time; they don't want the cheapest options.

OTAs like Expedia, Booking,com and others reward competitive and conversion-friendly pricing with visibility in search rankings. It means rate directly impacts searches. If prices are not updated or lag behind the market, then the hotel can be lower in search results, which can reduce clicks and bookings before realising that there is a problem.

Today’s modern and advanced Precium Revenue Management System allows hotels to run strategically, like minimum and maximum rates, occupancy-based rates, and LOS (length of stay), and automates rate adjustments as per the market conditions. Precium Technologies can enhance the Revenue strategy and keep it intentional and controlled. Instead of reacting later, it responds 24/7, whether at 3 PM or 3 AM.

The overall effect of continuous optimisation is powerful. In general, you see modest rate increases during peak compression nights and timely adjustments during peak periods and smart yield moves if occupancy crosses a certain threshold. 365 days, these incremental gains can significantly improve RevPAR and adapt continually, collect large levels of data and make confidential strategic decisions.

Pricing can’t be static in a 24/7 booking environment. Guests search the entire day, and competitors adjust accordingly. Here, the question is, is your hotel moving with the same speed in the market?

Because in the hospitality industry market, a quick response isn’t just an operational advantage; it is a way to generate Revenue.

Get ready to update your pricing 24/7 with the Precium Real-time Competitor Rate Shopping Tool. Schedule your free demo now.