Rate comparison shopping is not just for the hospitality industry. Rate shopping refers to the process of comparing several options based on price. But let’s use this definition to make things simpler: The process of gathering rate intelligence is called “rate shopping.”

The foundation of revenue management is analytics. A hotel needs a deep understanding of consumer and market behaviour to categorise clients into manageable groups, predict seasonal demand, and set the best prices for each room in an inventory. This information generally appears on business intelligence reports and live dashboards to make it more visible and valuable.

Why to Use Hotel Rate Shopping Software? What do you do after you obtain rate information? There are a few revenue management duties that heavily rely on it, aside from just glancing at it and manually altering your rates.

Automated Pricing and Dynamic Pricing

Dynamic pricing, one of the revenue management techniques, is determining a price based on the state of the market to increase sales. The method, frequently employed in the context of airfare, can also work well with other travel suppliers, matching hotel pricing to your company costs, rival prices, or shifts in demand.

Demand Forecasting 

Similar to retailers, hotels are interested in knowing how big or little the demand will be. The job of demand forecasting is to do this. Most of the time, hotels rely on their sales data from prior times to predict which months would see an increase in visitors in particular areas and to change their prices and operational procedures accordingly.

By providing historical and current data from different hotels, rate shopping tools can give users a broader perspective. Suppose you’re a new company or considering opening a property in a different location, for instance, and lack historical data. In that case, you can view competitor room rates and their availability and watch price evolution to gain insight into other people’s pricing tactics.

Monitoring Rate Parity

Today, engaging with Online Travel Agency (OTAs) is essential to operate a hotel business. Additionally, when you have listings on numerous websites, you want (and are frequently compelled to) guarantee rate parity or price uniformity across all distribution channels, including your website.

Unfortunately, hotels frequently don’t collaborate directly with their distributors, as is the case when an OTA purchases its inventory from a wholesaler. This can result in pricing discrepancy when a hotel’s website price is greater than the OTA’s. This results in fewer visitors staying at a hotel and damages the property’s reputation because people think its rates are too high.

Benchmarking and Comparing Performances

You can compare your KPIs and always have accurate benchmarking data by using rival rate and occupancy data. In addition, you will have access to the RevPAR, Occupancy Rate, and ADR of other hotels and properties.

If you’re not careful, several inexpensive items will cost you money when you buy a hotel management software system. Therefore, spend some time conducting a thorough analysis before investing in the best rate shopping software for your hotel business.

RateGain is an expert network for the hotel and travel industries where you can learn more about Artificial Intelligence in the Hospitality Industry. Experts use its insights, techniques, and recommendations to enhance customer experience, maximise revenue, rethink processes, and find inspiration. RateGain provides the best rate shopping software in the industry. 

The best resource for learning everything there is to know about the hotel management system is RateGain. Contact with RateGain to get the best hotel rate shopping software!