Due to its simplicity, flat pricing is a common tactic used by hotels all over the world. They normally rotate between one or two season rate charts. This has become standard practice because it is quicker to make changes than manual updates of hotel rates based on changing demand, seasons, and other variables. In today's changing world, a flat pricing approach might be expensive. Hotel owners can overcharge customers and lose bookings or undercharge them and lose the chance to make more money. Modern technology has made it possible for hotels to immediately address this issue by utilizing the power of dynamic pricing. There is a way to increase hotel revenue. Through AI-based dynamic price recommendations, you can effectively optimize hotel rates and increase revenue.
Benefit from Day-of-Week Pricing
The hotel industry's historical data indicate that not every day of the week is the same for hoteliers. For instance, Wednesday has higher demand than Monday. Similar to this, Saturday evenings see more visitors at leisure hotels than Friday nights do. However, hotel owners use the same pricing for practically every day of the week rather than adapting to the fluctuating daily demands. In theory, hotels that offer Monday rates will certainly see an increase in Monday reservations. They can also make a significant profit by charging more on Wednesdays. If you consider day-of-week cycles when setting the room rate, your hotel may experience an increase in bookings and revenue.
Timely response to shifting demands
You can't just set hotel room prices once and forget them; they should be dynamic. Dynamic pricing by Price Point only makes sense when used in conjunction with the newest technology-driven automated pricing solution, as we have already covered above. Users of revenue management systems (RMS) with dynamic pricing capabilities can adjust prices as ways to increase hotel revenue in accordance with the constantly shifting demand trends. It has a direct effect on the revenue and profit margins of hotel operations.