Smarter Revenue Management for Hoteliers
- Avoid Missteps: Why Guest Bookings Aren’t the Whole Story
- Drive Profitability with Data-Driven Pricing
- Stay Competitive by Understanding Market Demand
For hoteliers with limited room inventory, basing pricing decisions solely on your current bookings can lead to costly errors—a classic case of "getting high on your own supply." Here’s why relying on isolated reservations to predict market demand could hurt your bottom line.
The Numbers Don’t Lie—But They Can Mislead
Picture this:
Two friends book a room to catch up.
A business traveller books for a nearby meeting.
Two regulars reserve their usual spot.
These bookings may create the illusion of soaring demand, but they’re isolated incidents, not a reflection of the broader market.
For properties with fewer than 50 rooms, small reservation spikes might seem significant, but they don’t represent external demand trends. Pricing decisions based on these assumptions often push potential guests toward competitors with better value.
The Guest’s Perspective
Imagine a potential guest’s thought process:
Your room costs £120, while a similar option nearby is £110.
The guest books the cheaper room, prioritizing price over minor differences.
Losing bookings this way stems from pricing decisions made without a clear view of market trends and competition.
Pricing Pitfalls to Avoid
- Overpricing from Localized Bookings
A few reservations don’t signal a market-wide surge. Guests are still actively comparing options.
- Ignoring Market Trends
Without external data on occupancy rates and seasonal pricing, decisions become guesswork.
- Overlooking Competitors
Failing to account for competitor pricing and value offerings makes it easy for guests to choose alternatives.
Smarter Revenue Management
Hoteliers need tools to see the bigger picture. MyRoomRates.com offers market booking demand and competitor pricing insights (how does for just £1 a day sound?). This data-driven approach enables informed decisions that maximise revenue while staying competitive.
A Simple Analogy
Would you leave home without an umbrella just because it’s dry inside? Similarly, basing pricing on what’s happening within your property ignores external market conditions. Success lies in understanding the broader landscape—market trends, guest behaviour, and competitor activity.
The Takeaway
Avoid the trap of overestimating demand based on your own bookings. Embrace a data-driven approach with tools like MyRoomRates.com to align pricing with market dynamics, ensuring strong occupancy and profitability. Stop guessing and start growing.