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Learn How Dynamic Pricing can increase Revenue and Lower Costs

Effective yield and revenue management is a balancing act for which the aim is to achieve the best possible average daily rate (ADR) and occupancy level by leveraging the opportunity that the current demand presents.

All too often, many accommodation providers race to the finish line to reach 100% occupancy. By shifting the focus from occupancy to revenue, small-to-medium accommodation businesses worldwide have successfully increased their ADR and overall total room revenue, whilst simultaneously reducing costs.

Consider this, a property that reaches a higher occupancy before a competitor will typically sell at a lower rate. Yes, they may have filled more rooms, however based on the same level of demand, that same property could have achieved a higher average rate by only filling to a certain base occupancy level and then increasing the rates for the remaining rooms to achieve the best possible yield. Fewer rooms sold at a higher ADR not only means more total revenue, but less rooms to service, hence reduced costs are also achieved.

Continuously monitoring inventory, demand, and rate strategy requires very special focus. Many commercial Hotel operators have the means to justify a full-time Revenue Manager but for small-to-medium operators, it can be a tricky task.

Rooms Online is in tune with the challenges that many accommodation providers are faced with in the current digital world – whether it’s lack of time to spend navigating the online landscape, simply wanting unbiased honest advice with promotions, or needing assistance with a dynamic pricing strategy. Rooms Online will help increase your exposure through your online channels, and grow your profitability by implementing effective dynamic rates management.

ADR – Average daily rate. Total rooms revenue by number of rooms sold
Dynamic pricing – Being responsive to market needs to maximise your return

Contact the Wellington based Rooms Online team for details and a no obligation chat.

Phone: 0800 676 667 (within NZ)
email: info@roomsonline.co.nz


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Ph: +644 974 8008

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