Hotel Yield Management Strategy: Monitoring New Room Type Offerings

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Hotel management has gotten more creative over the years and started to offer all kinds of room types. What was once a 1 King, Non-Smoking room is now an Ultra Deluxe King, Forest View (Non-Smoking). Hotels have even started to offer complex promotions within their room types. Free drinks, appetizers, show tickets or even free nights enter the picture regularly for potential guests to meander through.

Oftentimes, revenue management will take into account the average daily rate for each competitor and compare the rates to their own. This worked well in a simpler world where most hotels had three or four primary room types. A simpler time, with simpler yield management techniques. However, with hotels offering ten or even twenty different room types, ADR has become a more difficult number to understand, especially when evaluating your competition. It can be even more difficult when factoring in things like resort fees, which may be waived on certain room types that further skew the comparison.

All of this movement is difficult to track without great hotel technology to help. RateShepherd notifies its customers of any room types that have newly entered the market within the last seven days. It will even let customers know if it has not seen the room type in awhile, just in case the competitor is bringing back an old promotion that had been put to sleep.

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