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 firstname.lastname@example.org.