It's already daily business with all airlines, common practice with the railways and now the ski resorts are also involved. What are we talking about? Clearly, it's about dynamic pricing.
Now, ski resorts want to increase their revenues through revenue management. Hans-Werner Rodrian on the Spiegel online reports that skiers, who are sensible to price changes, should plan their holiday in advance. It is no secret that ski pass prices rise every year, but in the Swiss tourism destinations are applied flexible prices. Thus, these rates are simply guidelines, which are adjusted according to the period between the date of purchase and the date of use or according to the occupancy rate in the ski resort. Those who buy the ticket before taking the ski lift will probably pay more than those who have bought it online. You can find the article in german language here.
Next to airlines, railways and ski resorts, there is still one missing: hotel! Many hoteliers are still very critical about the topic “Revenue Management” and continue to insist on price lists.
All important partners in the travel business are now profitably relying on revenue management. There are very good reasons why revenue management should be implemented also in the holiday hotel industry, as on average around 8% more turnover can be generated with the same capacity utilization.
An intelligent Revenue Management system, such as RateBoard, helps changing static price lists to more flexible ones; it takes over prices recommendations thanks to its sophisticated software, bringing more sales without much effort.
RateBoard explains here the factors that influence the price, so that the hotelier can understand how it works. The calculation is done using these factors:
- external market demand
- weather data
- reviews & social media
- web data
- holiday and event calendar
- prices of competitors
- past and future reservation data
From this algorithm, the hotelier receives price suggestions for the coming days/months/years. These are just suggestions, that the hotelier can revise himself and apply afterwards.
Say goodbye to your static price lists! Request your demo now!