Imagine being able to price your rooms perfectly, every single time. That’s the power of an automated revenue management feature. By closely tracking real-time market demand, it adjusts your rates on the fly to hit that sweet spot – the optimal price point that looks after your revenue. It’s like having a mega pricing guru working for you 24/7!
An efficient revenue management system brings a whole host of benefits to the table:
- Increase Efficiency
- Automate Pricing
- Maximize Profits
Now, let’s talk about how you can put this game-changing feature to work in STAAH SwiftBook, your friendly neighbourhood property management system:
1. Dynamic Rate – Room Type Level
With this approach, you can set specific dynamic pricing rules for each unique room type in your property. That means the rates for your cozy singles will fluctuate differently than your swanky suites based on their individual demand patterns. Talk about personalized pricing!
2. Dynamic Rate – Property Level
If you prefer to keep things simple, you can implement dynamic pricing across your entire property. One universal optimal rate to rule them all! The system looks at the overall demand for your accommodation and adjusts pricing accordingly for all room types.
Whichever route you choose, you’re unlocking the full potential of automated revenue management. It’s like giving your profits a nitrous boost while making your life about a million times easier. Yeah, it’s that good.
1) Dynamic Rate – Room Type level
Setting up Dynamic Rates allows you to automatically update your room rates on your hotel’s booking engine and Online Travel Agencies (OTAs) based on predefined rules for different seasons. Follow these simple steps:
Step 1: Define Seasons
- Go to the “Seasons” section and select the date range for each season (High, Low, Peak, Customized Festival/Event etc.)
- Give each season a name and save your changes
Step 2: Set Dynamic Pricing for Each Room Type
- Navigate to the “Dynamic Pricing” section
- Select the season you want to set rates for
- Choose the room type you want to set rates for
- Enter the price (from lowest to highest rate) for that room type during the selected season
- Save your changes and sync the rates
Step 3: Enable Dynamic Pricing Mode
- Go to the “Rate Mode” section
- Select “Dynamic” from the drop-down menu
- Choose the room types you want to apply Dynamic Rates to
- Set the date range for when you want Dynamic Rates to be in effect
- Save your changes
That’s it! Your room rates will now be automatically updated on your booking channels based on the Dynamic Pricing rules you’ve set up for each season. This way, you can easily manage your pricing strategy without having to manually update rates for different room types and seasons.
2) Revenue Control – Property Level
Setting up Dynamic Rates based on occupancy allows you to automatically adjust your room rates on your booking engine and Online Travel Agencies (OTAs) based on how many rooms are currently booked at your property. Follow these simple steps:
Step 1: Set up a Master Room
- Go to the “Rooms” section and create a new room type called “Master Room”
- This will represent the total room inventory of your property
Step 2: Define Seasons
- Navigate to the “Seasons” section and set up your different seasons (e.g., High, Low, Peak, Customized Festival/Event)
- Assign date ranges to each season and save your changes
Step 3: Set up Pricing for the Master Room
- Go to the “Pricing” section
- Set up different pricing levels for each season but only for the Master Room (Default, Peak, High, Shoulder, Low, Customized Festival/Event)
- Enter the rates for each pricing level and room type. Example: High Season price for a Master room when there are between 55-20 rooms available will be $225, but when there are 19-10 rooms it will be $230 and when there are less than 9 rooms it will be $235.
- In a nutshell, if the price of the master room goes up and there are fewer rooms to sell overall, the price of the child room will increase by that % or $ value set in the formula.
Step 4: Create a Pricing Formula
- This step is for room based pricing
- In the “Pricing” section, select “Create Formula”
- Set up a formula to set the price difference between the master room and all the child rooms, it can be a $ or % value or a combination of both.
Step 5: Confirm and Submit Pricing
- Review your pricing setup and make any necessary changes
- Once you’re satisfied, click “Finish & Submit”
Step 6: Enable Dynamic Pricing Mode
- Go to the “Rate Mode” section
- Select “Dynamic” from the drop-down menu
- Choose the room types you want to apply Dynamic Pricing to
- Set the date range for when you want Dynamic Pricing to be in effect
- Save your changes
Your room rates will now be automatically adjusted based on the occupancy of your property, as per the formula you’ve set up. This way, you can maximize your revenue by adjusting your rates dynamically based on demand.