Dynamic Rates
How can Dynamic Rates Improve Revenue?
Dynamic rates adjust the overnight price of rooms to suit marketplace demand. This feature aims to maximise revenue by charging guests a premium when demand is high, or offering a competitive price when demand is low. As a result, when used correctly, this automated revenue management tool will ensure you’re charging the right price and maintaining high occupancy.
Nicholas Albertini
Marketing
What are Dynamic Rates?
Dynamic rates give you the flexibility to easily change rates for any given night or any given date range. Unlike standard rates, which will not be changed very often, these rates are frequently changed automatically to meet your daily needs and respond to changes in your situation. Consequently, the rates of your property will match market demand, giving your property the best chance to maximise occupancy.
GuestPoint PMS streamlines this feature by using our revenue maximiser. This feature is dedicated to adjusting rates according to current market conditions, and your property’s occupancy rate.
What is the Value of using Dynamic Rates?
Boost Sales and Maximise Profits:
Firstly, the main benefit of using dynamic rates is the fluctuation of prices to match demand, sell more rooms and maximise revenue. By enabling the revenue maximiser, when demand is low, lower prices will be offered to reduce the chance a room goes unsold. Likewise, when your property is reaching maximum occupancy due to high demand, prices will be automatically set at a premium to maximise profits.
It is Automated:
Secondly, automating dynamic rates using the revenue maximiser, can relieve managers of manual tasks. This free’s up time for managers to focus on other areas of the property or attend to guests.
Works 24/7:
Finally, the GuestPoint Revenue maximiser works year-round, adjusting rates 24/7 to ensure your property is gathering maximum revenue. This is valuable as you do not have to be in the office to ensure your property is maximising the benefit of GuestPoint.
When might this Feature be used?
When demand is low, occupancy will also be low on a given day. Therefore, a lower price will be charged so rooms unsold are minimised.
Similarly, when demand is high, this feature can be used to charge a premium for a booking. For example, there is a major event coming up and you know people will be searching for accommodation, so you apply a rate increase.
GuestPoint Revenue Maximiser
GuestPoint’s revenue maximiser is highly personalised to suit your property. In other words, rates can be specifically chosen for certain rooms, certain nights and for certain booking ranges. Moreover, you can also apply this feature to certain channels. As a result, you have more control of market opportunities.
Want an exclusive look into GuestPoint’s revenue maximiser? Book a zero-obligation demo with us:
Summary of Dynamic Rates
Overall, using a revenue maximiser is a win-win situation. Revenue is maximised for the accommodation vendor and the guest is willing to pay for the price set. GuestPoint’s revenue maximiser feature is automated, works 24/7 and boosts sales and maximises profits.
- Nicholas Albertini
- Accommodation Industry, accommodation management, Dynamic rates, Hotel marketing, Management Tips, Motel marketing, Revenue maximiser
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