What is behind dynamic pricing?
Dynamic price optimization (Dynamic Pricing) means that the hotel owner regularly adjusts his prices to the market. If demand is very high, for example, the price can be increased at any time. This is particularly used in the hotel industry and is successfully implemented as a revenue management strategy.
Work with happyhotel for dynamic pricing
happyhotel analyzes the entire PMS data and enables hotels to generate more revenue with Dynamic Price Optimization. happyhotel works with data of occupancy, past data and turnover as well as competitor prices.
Get high quality and reliable statements of your KPIs like ADR and RevPar to optimize your prices.
Increase your room rates at events by up to 60%
happyhotel optimizes your room prices and takes upcoming events into account. You can create the events yourself or your existing calendar with happyhotel. Through dynamic pricing you can charge up to 60% more for a room on peak days.
happyhotel tells you when you can adjust the price and what the consequences are for you. happyhotel not only gives you suggestions but also justifies the new prices.
FAST & EASY
Align your room rates based on the planning of events and functions.
Detect high capacity utilization at an early stage
With the help of the chart you can recognize your future workload in a cohort analysis in time. Thus, no more bookings are lost and you do not lose your focus.
The hotel software happyhotel supports you! On the picture you can see the individual months listed below each other. Each line corresponds to one month. 6 months before July (January) the month was already 21% fully booked. One month before that, July was already 49% full!
As you can see, you can evaluate your data with just a few clicks and record it quickly.
By using dynamic pricing you can generate more revenue because you can plan better in advance.
Increase the RevPar with dynamic pricing
The daily turnover can be increased very easily through price adjustments. Days with a high demand are recognized early and the prices are adjusted accordingly. happyhotel controls the prices daily and adjusts the amounts constantly.
All KPIs at a glance
The most important thing is to always keep an eye on the KPIs and to react in time.
Increase capacity utilization through dynamic prices
The workload can be controlled very well with the help of the accounting curve. If there is no demand, the price is lowered and bookings are generated again. The capacity utilization can thus be controlled.
How important is the capacity utilization?
There are many key figures that are important, including the lower price limit in any case. The price is directly related to the capacity utilization. If the price is adjusted, this often has a very fast effect on the utilization.
How can I increase the capacity utilization?
As soon as the price drops, this often has a direct effect on capacity utilization. This means that the optimum capacity can be achieved on a daily basis. The daily turnover should be kept in mind.
Features and benefits of dynamic pricing
When working with dynamic prices or Dynamic Pricing in the hotel, the prices are adjusted daily. First used by the airlines, many hotels are now already working with dynamic prices. In contrast to the conventional pricing model with rigid or seasonal prices that are only changed when a certain case occurs, several factors play a role in Dynamic Pricing.
With Big Data, dynamic pricing in the hotel industry can continue to evolve. Based on internal and external data sources, the price of a room is recalculated according to the length of stay and number of people. Dynamic Pricing and Yield Management are based on demand and no longer on fixed tables. This has the advantage that there is no sell-out of rooms due to too long a low price on the market.
Furthermore, the price is automatically increased by the algorithm in case of strong demand. Companies that work with dynamic prices will also have to change their distribution policy to indicate “from” prices on the website and in catalogs. The “from” price is then the minimum and starting price for a price range within which the dynamic price can move.
Another advantage of dynamic prices is that the variety of rates is thinned out and everything is based on the flexible ”Best available Rate”. From this rate one can derive early bird prices and rates with restrictions with percentage surcharges and discounts.