Set your price right and stop wasting time. Here’s how.

Piles of internal reports, competitive pricing reports, STR reports, emails from the sales team, all jamming your bandwidth and stealing your time.  Ok, usually all of these different sources of information have tidbits of valuable data, by the time you sort through it all and make sense of it valuable time has passed and now you’re late for the next item on your daily checklist.

Our team has practiced revenue management for years, and we have lived that scenario a thousand times.  It happens.  So how do you clear all that noise, save time, and make better informed pricing decisions?

You need a one-stop shop for pricing data, a tool that shows you the current published lowest daily rates, and right next to that the market fare forecast – what the competition will be charging, and what price you actually need to compete with.

If you price right at the lowest published competitive rates, you might feel good about that price today… until tomorrow when you see the competition raised their rates (or lowered them!). If only you had known that the market rates were trending up, or down, you could have been one step ahead with your pricing strategy.

Fare-1-1 delivers the Market Fare Forecast, Lowest Daily Rates, and published current Daily Hotel Rates.  Search through them with ease, see what specific hotels are priced at your rate, see who is priced higher and lower… with ease.  In seconds.

Your fancy, expensive RMS does not do that.  Fare-1-1 does.

Please feel free to join the discussion by leaving your comments, or contact me directly at askjames@fare11.com.

Sign up for a free trial at Fare11.com today, and visit us on Facebook.com/nopricegaps.

Situational Awareness

Situational awareness is critical to success.

A long time ago, someone very wise offered me great advice…

Situational awareness. Always be aware what is happening around you.

When setting your rates, this awareness is critical. Your price should always be set first and foremost based on your property’s own supply and demand situation, then adjusted to maintain your competitive edge and protect market share. This is where situational awareness plays a big role.

So you set your one night length of stay rate at $149. You then need to compare your new rate against the market, and upon checking the Lowest Daily Fares you see the lowest comparable rate in your market is $159. You also see that the Market Fare Forecast predicts your market will be priced at $189, as the rates in the market are trending up over the past week.

How does that new rate look now? Your new rate at $149 is leaving $10 on the table, and very likely actually $40. The opposite of this scenario also presents opportunity… if you are $40 higher than where the market is headed, you will want to adjust so you don’t lose occupancy for the sake of protecting rate.

Situational awareness is great, immediately helping you identify small opportunity… but when you gain insight and take action to properly position your hotel in the market based on what the competitive rate will actually be, you really unlock hidden revenue and profitability.

Don’t just rely upon a spreadsheet that regurgitates what rates are found online… don’t simply react to the competition! Gain insight with valuable data found in the Market Fare Forecast, take action and drive your business.

Please feel free to join the discussion by leaving your comments, or contact me directly at askjames@fare11.com.

Sign up for a free trial at Fare11.com today, and visit us on Facebook.com/nopricegaps.

 

Perfect Hotel Rate: Did You Nail It?

Perfect rate… revenue management’s holy grail (ok, go ahead with Monty Python quotes here).  So, how do you know when you actually nailed that perfect rate?

You could perform a complicated price sensitivity analysis, evaluate whether or not you actually left demand on the table (do you have data behind constrained and unconstrained demand?), and numerous additional analyses.  You could invest a lot of time chasing the answer.

We recommend asking another question, to find your answer: Did you lower your rate?

It’s pretty simple, so let’s avoid analysis paralysis and save a lot of time.  The goal is to sell your rooms for the highest price on the day of arrival. If you were selling for $199 three months ago, $249 one month ago, now less than three days to arrival you are priced at $199 again (or lower) then you simply didn’t nail the perfect rate.  Or, you didn’t leave the perfect rate out there long enough to do its job.  Either way, you didn’t nail it.

Honestly, we know the perfect rate really only exists in theory… but the common hotel/resort doesn’t need to try and solve complicated analytical battles.  If you’re wondering how effective your rates are, evaluate how often you lower rates… adjusting/correcting rates once you realize you’re set too high, or too low is great.  Constantly changing rates and dropping rates as you get closer to arrival is habit to avoid.  After all, if you drop rates closer to arrival you are educating your customers to wait until you drop rate… not good!

Knowledge of market trend and where your comp set will be priced is key… stay one step ahead and protect your market share.

Please feel free to join the discussion by leaving your comments, or contact me directly at askjames@fare11.com.

Sign up for a free trial at Fare11.com today, and visit us on Facebook.com/nopricegaps.

It’s Time To Sweat The Small Stuff!

We have all heard someone offer the cliché advice “Don’t sweat the small stuff!”  If you’re anything like me, that drives you crazy.  As a revenue manager, we live for the small stuff.  After all, it’s the small stuff, the 1-percent gains that translate into the BIG stuff… so, we sweat the small stuff, and justifiably so.

While we’re being honest with each other, there’s actually quite a bit of ‘stuff’ in our world.  Conference calls, reports, rate parity, inventory management, sales and marketing meetings, training, revenue meetings, group requests, contracts, competitive reviews, and so on.  This stuff is important, and deserves your attention… but it’s not the small stuff. 

Situational awareness of your competitive rate position is powerful small stuff.

Ok, I admit… it’s a bit of a love-hate relationship.  We love being the story tellers, after hours of digging through data and completing analysis that makes us smile as we find those tidbits of supporting evidence that add up to strategic insight.  There’s nothing that compares to persuading a board room audience to shift strategy based on your analysis and being proven correct… and we love it.  We hate when stuff pulls us in 17 different directions and we lose valuable time we’d rather spend on that analysis we were just about to finish… especially when it’s the fourth meeting in a row and the agenda includes reviewing the upcoming revisions to the cubicle floor plan.  Not something we love.

Managing your time is perhaps the most important job skill you can develop.  What this really means is not allowing other people to manage your time.  Ensuring analysis is based on the most recent data, improving accuracy and updating forecasts, refining analysis with improved segmentation, working with the sales team to make sure they understand the forecast changes; these are just a few examples of the small stuff that simply must be deeply integrated into your daily schedule.  Seriously… the small stuff should literally be scheduled on your daily calendar.  Assemble a daily and weekly checklist, and block time on your daily schedule.

Make sure you actually have access to and reference the right small stuff.  This speaks directly to your competitive rate analysis! Fare-1-1 provides daily updated views of the data you need… Market Fare Forecast pricing by length of stay and trend behavior, lowest daily fares, and more!  All conveniently located on our Dashboard.  Set alerts and you don’t even have to monitor reports… you’ll get an email alert!

It’s our professional duty to sweat the small stuff, and the first step is being the master of your own time – save time and increase revenue!

Time to sweat the small stuff.  Good luck!

Please feel free to join the discussion by leaving your comments, or contact me directly at askjames@fare11.com.

Sign up for a free trial at Fare11.com today, and visit us on Facebook.com/nopricegaps.