Hotel Pricing plays a key role in the hospitality industry because of such a highly competition-driven field and to maximize profits. Thus, Hotel Pricing Monitoring is a crucial strategy that many hoteliers adopt to maintain and sustain the competition.
This not only helps hoteliers to adjust and fluctuate their pricing strategy according to changing market needs but also to keep a check on their competitors. Capturing real-time market prices and current trends can conveniently contribute to better revenue management.
This blog will explain everything about monitoring hotel prices, their importance, and how you can track pricing for your business.
What Is Hotel Price Monitoring?
Hotel Price Monitor is a tool that helps in the analysis of internal and external variable hotel prices in order to optimize and plan one’s pricing strategy so as to maximize profits.
Hoteliers check hotel prices over time in both their internal environment and also of their competitors to understand changing demands. This helps them to change their pricing strategy based on real-time data and accordingly increase their revenue generation by utilizing the opportunity of high demand.
Price Monitoring is also defined as price intelligence as it provides the person keeping the track of prices with updated information on industry trends. The accumulated information is intelligence and provides any hotel business owner with the mobility to strategically plan their business operations.
In order to sustain the cut-throat competition of today in the hospitality industry, it is essential that hoteliers regularly monitor hotel prices and utilize the opportunity to grow their business.
How Does Hotel Pricing Work?
Hotel prices change daily and it is essential that you keep a hawk’s eye on the ever-changing needs in order to regularly update yourself.
In order to understand how hotel prices are determined and how it all works, go through the following questions and quench your thirst with the answers.
It is important to understand why do hotel prices change so quickly to analyze the process aptly.
There are multiple factors that affect the overall pricing of your hotel such as seasonality, supply, and demand, online booking services, duration of the stay, holidays, etc. All these factors have a huge impact on the demand and supply of hotel inventories which further affect pricing.
In peak seasons when there is a huge rush of travelers and tourists at a particular location, the demand for hotel inventories suddenly increases but the supply and availability are limited.
This leads hoteliers to charge a higher amount for the same rooms and facilities. Other significant factors like the availability of amenities and services also impact the overall pricing of a hotel.
As we learned above, a variety of factors affect hotel pricing. But the main reason that determines when do hotel prices go down or rise depends on demand and supply chain.
The higher the demand for a particular segment of hotels in a locality, the higher it will have its pricing. In off-seasons, when the demand for hotel inventory goes down, hoteliers significantly lower down their prices to attract more customers as a part of their pricing strategy.
Hotel Price Drops are an equally important strategy for hoteliers to even out their booking process and revenue generation throughout the year.
The answer to the question is variable and mostly depends on individual hotels. Hotel Prices are negotiable to some extent but the negotiation can differ depending on the time of booking, availability of rooms, and hotel policies.
If you plan to book in a peak season when the hotel occupancy rate is already quite high, there is very less chance of negotiation.
On the contrary, you might be able to avail of special discounts and offers given by hotels during off-seasons. The amount and percentage of such negotiations continuously vary and are solely dependent on individual guests and hotel owners.
Why Is Hotel Price Tracking Important for Hoteliers?
Hotel Price Tracking and monitoring are quite important for hoteliers to outgain the benefits of strategic price management and leverage their business operations to gain more advantages.
Through the process, you can successfully get a record of hotel price history, generate an efficient hotel pricing strategy, set up hotel room rates, and create a hotel price calendar. Monitoring Hotel Prices have numerous benefits which you must have a look at and decide whether it’s worth the effort.
Here are The Benefits of Tracking Hotel Prices:-
1. It Simplifies Forecasting Process
A hotel rate watcher allows you to track hotel prices with ease. When you keep a track of hotel prices it becomes quite easy to forecast rightly and accordingly set your marketing activities in accordance with that.
Forecasting can be an overwhelming process for hotel owners, but with the right set of real-time pricing data, it can be made efficient.
2. Understand Demand Flow in Your Target Markets
Keeping an eye on Hotel Room Rates can help business owners to understand demand flow in their respective target markets.
You can quickly pick up when your hotel rooms are highest in demand and when you experience lesser bookings. This will help you adjust your business strategy throughout the year to generate higher profits and attract more customers.
3. Keep Your Competitors In Check
By tracking hotel room pricing you not only optimize your pricing but also helps you to understand your competitor’s pricing strategy.
It is equally essential that you keep what’s buzzing in your local market in check. Tracking pricing can provide you with valuable information that can further help you to achieve a competitive advantage in the market.
4. Understand Rate Changes in Market
Understand the changing trends of the hotel industry and update yourself with the best possible choices for your hotel.
Tracking hotel room pricing gives an insight into both hotel price history and current trends through which you can easily manage your business’s important functions.
5. Helps in Price Strategy Optimization
Hotel Price Trackers also help in Price Strategy optimization through the process of yield management and real-time price data. You can actually use the data to calculate yield and accordingly optimize your price strategy in a way that is beneficial throughout the year.
Hoteliers use Yield Management for a foolproof pricing strategy as it doesn’t just forecast but actually calculates precise percentages and results which can be applied to practical use.
How to Monitor and Track Hotel Prices? 5 Best Ways to Track Hotel Pricing?
Above you have learned all the possible advantages of hotel pricing monitoring for your hotel. It’s time to invest in the best tools to acquire the best results.
1. Hotel Rate Shopping Tool
Also known as Hotel Rate Shoppers are one of the best and most convenient methods that hoteliers adopt today to get real-time market intelligence.
A rate shopper tool automates the process of tracking hotel pricing across different channels to get real-time data on changing rates.
It helps accommodation providers make better decisions for hotel pricing based on accurate market data. These smart technologies help you catch up on the accurate and instant price data in your relative field further resulting in better revenue management and higher productivity.
You can significantly increase your revenue generated per room by comparing your rates against the competition and the length of stay. Also, comparing and keeping an eye on your competitors got easy and quick with such price comparison and rate shopping tools.
Using smart tools like these to analyze local competition and respond to demand can help you attain a competitive advantage.
2. Website That Tracks Hotel Prices
You might come across multiple websites such as TripAdvisor, Skyscanner, and much more that allow you to track prices over time.
By depicting a hotel price calendar, you can keep an eye on both past price records and current trends efficiently. They also predict upcoming demands and price trends based on past performance and future expectations. You can use the information to check your hotel’s pricing strategy and accordingly optimize it to generate better results.
Through tracking pricing on OTAs you can significantly see when the prices are going down and offer potential guests the best rate to book directly. Save yourself from underselling at the right time by keeping a check on your competitors through such platforms.
3. Integrate Price Comparison API
Hotels are always in search of something easier and more flexible to leverage their business functions.
One such technology is Hotel Price APIs that crawl over multiple web pages to come up with the best possible results according to a query.
The Price Comparison API will give you real-time average hotel prices in your locality and effectively see your competitor’s price strategy.
One such Price Comparison API software is Makcorps which provides you with hotel price data from over 200+ OTAs in a single get request. You can take advantage of such tools to your leverage by providing competitive deals to your potential customers and attracting more bookings. Integrate Price Comparison APIs with your management system to optimize your business process.
4. Google Hotel Price Tracker
This hotel rate watcher has several benefits and advantages on their side which could also be used for monitoring hotel rates.
Google Hotel Price Tracker is another marvelous tool that allows you to compare your local market’s current price trends with the average hotel price.
It helps you keep a check on your competitors by comparing whether they are offering a lesser price than usual. Track Hotel Prices on Google and stay one step ahead of your competition.
5. Google Hotel Price Insight
As the name suggests, Google Hotel Price Insight gives you a deep and thorough understanding of how hotel room rates fluctuate.
With such a function, you can easily see how prices change over time during multiple seasons and which could be termed as high or low seasons.
Accordingly, you can plan your pricing strategy based on the seasonal demands and significantly increase or lower your pricing. Also, you can check on your hotel’s performance by comparing it with other properties with similar services and star ratings.
Monitor Hotel Pricing Using Makcorps API:
Makcorps is a hotel rate shopping tool that provides hotel pricing data via APIs from over 200 + OTA platforms.
It is a web-based software technology that crawls across multiple web channels based on a search query and comes up with the quickest and most relevant answers.
This is an automated process that has helped many hoteliers over the years to simplify their business processes and make them more efficient.
The Hotel API dynamically connects you to a robust hotel aggregator which keeps a track of both historical pricing data and current pricing trends in the industry.
You can use Makcorps Hotel API to instantly catch up on the pricing trends in your locality and compare your hotel’s pricing strategy with that of your competitors.
You can significantly increase your booking by creating an optimum pricing strategy. Release timely discounts when the pricing trends show a decrease in pricing and also increase them during times when demand is much higher. Secure competitive advantage and sharp pricing and sign up at Makcorps now.
Frequently Asked Questions:
There are many tools available in the market for hotel price tracking and monitoring. But, not all of them are accurate and has high success rate. Our advice is to go for Makcorps Price Tracking Tool For Hotels which offers you competitive pricing comparison from 200+ OTAs, agencies, hotel chains, and more reliable sources.
Not entirely, but Makcorps Hotel Pricing API is one such pricing monitoring tool that offers you a free trial for 30 days with 200 APIs. Afterward, you can switch to premium and also take a custom plan according to your hotel price searching requirements.
Monitoring hotel prices are super beneficial not only for hotels and hotel chains. But, also the OTAs (online travel agencies ) and hotel booking portal developers can use this tool to improve accuracy and provide a better user experience to their visitors.
Monitoring the prices of your rivals alone would not make a direct impact on your hotel sales. But, analysis of pricing data, forecasting, and creating a better pricing strategy using hotel price tracking tools surely make a significant change in increasing your hotel’s bookings.
Hotel Pricing Monitoring is an effective strategy to generate the best possible revenue out of each individual room and maximize profit overall. Integrate your pricing strategy with the rest of your business with a suitable pricing and business intelligence tool. Real-time market intelligence tools for the hotel industry helps hoteliers make better pricing strategy and decisions based on accurate market data. So, it’s about time that you utilize the term for your profit.