Properties set pricing for annual local events such as summer festivals or holidays. For example, a rush of tourists in town for the annual Christmas Market causes a property’s occupancy rates to increase by 15%. In order to capitalize on this anticipated demand spike, the property can adjust room rates using the previous years’ occupancy pricing history as benchmarks.
However, market demand will inevitably vary from year to year. While historical data factors into determining room pricing around a given event, current booking data provides even better insights into this year’s demand.
Similarly, properties must optimize room rates for non-recurring events. This year’s Summer Olympics in Rio de Janeiro and the UEFA Euro 2016 Men’s Football Championship in France are examples of large events which will draw millions of visitors to their respective locales.
Accommodation providers in Rio and France know that this summer will be busier than usual. However, seeing as these unprecedented events lack historical local data, how can revenue managers begin to predict how much rooms should cost during those crucial summer weeks?
Big data. The rise of online bookings has produced massive amounts of data concerning where, when, and how travelers reserve accommodations. People traveling to Rio and France (and anywhere else) this summer have already booked rooms online or are currently looking for hotels online. Therefore, aggregated market demand data already exists for both annual and non-recurring events which are still months away.
The average Revenue Manager does not have access to the scores of data on booking behavior. Thankfully, BookingSuite engineers produce reliable software that makes aggregate booking data both accessible and useable to the individuals in charge of planning a property’s room rates.
Our RateManager revenue management tool takes into account up-to-the-minute online demand data in order to accurately recommend rates all year long. This consideration becomes especially important for those times when a location’s demand fluctuates on account of difficult-to-predict circumstances.
While festivals, sporting events, and concerts might stimulate a region’s demand, tragic circumstances such as terrorist attacks and natural disasters often work conversely and prevent travelers from visiting a location. So no matter a property’s location or peak season, managers can account for demand generated or depleted by all types of events through smart software tools.
Que sera, sera. The future’s not ours to see. Big data, on the other hand, is yours to use with RateManager.