We recently partnered with Duetto to discuss “The 7 types of Data That Will Improve Your Room Pricing” in a free webinar for hoteliers.
From historical booking information to newer consumer-centric data sets like web shopping behaviors and guest reviews, the aim of this webinar was to help hoteliers understand future demand more accurately and how data sets can affect pricing.
The panelists, Dan Yacker VP of Global Strategic Alliances at Duetto and our CEO, RJ Friedlander, explained each of the key data sets, using success stories from the industry to illustrate how the data can help hoteliers improve room pricing. Here is a summary of the 7 layers they identified and discussed:
1. Historical data and booking pace
Almost every hotel will already be monitoring historical data through a property management system. By analyzing this data you can identify previous booking trends and use this to price more accurately.
2. Competitor pricing data
Your competitor’s pricing data can provide you with useful insight on market demand to help forecast and create a successful strategy. A revenue management system can be used to analyze competitor’s websites and monitor how their prices are changing.
3. Events and macroeconomic factors
External factors such as economic development or events in the area can affect pricing. Take important dates into account such as local holidays or annual events when forecasting as well as larger factors like economic development or zoning changes.
4. Airlift data
This one is simple. If more flights are scheduled to land in your location at a certain time of year, then more travelers will be looking for somewhere to stay. Monitoring this data allows you to factor in higher volumes of travelers at a specific time to alter your prices accordingly.
5. Social reviews and ratings information
Hoteliers must analyze how their online review scores and ratings have changed over the past year when forecasting and setting a pricing strategy. If a hotel has stronger online reviews than a competitor with the exact same offering, then chances are a potential guest will choose the property with the more positive online reviews.
6. Weather data
The weather can determine whether or not you receive an influx of bookings at your hotel at a specific part of the year, specifically hotels in weather-driven markets. Monitoring weather forecasts could mean the difference between a profit and a loss.
7. Web- shopping data
Many people search for a hotel but don’t intend on booking, instead they search for dates and prices. It is crucial to monitor this data when forecasting demand as it provides hoteliers with important insight into potential guests who maybe didn’t book due to a specific date and price.
Using these 7 types of data will enable you to build an accurate forecast to optimize pricing and drive overall revenue at your hotel. Monitoring the online review data of your hotel and that of your competitors is a critical part of improving your pricing strategy. Our webinar poll results showed that almost 48% of hoteliers in attendance already monitor online reputation data when optimizing pricing.
If you missed this webinar, you can listen to it here.