Analytics-based pricing helps hoteliers maximize revenues by room type
MINNEAPOLIS – June 16, 2016 – IDeaS Revenue Solutions, the leading provider of revenue management software solutions and advisory services, today announced its new Ideal Pricing feature collection. Using advanced SAS® analytics, the new Ideal Pricing functionality provides hoteliers more choice, flexibility and control to select the pricing methodology that fits their business and maximizes revenue strategy.
The new pricing collection is part of the IDeaS G3 Revenue Management System (G3 RMS) platform. IDeaS G3 RMS empowers users to increase revenue performance with the industry’s most comprehensive pricing decisions, sophisticated forecasting and interactive dashboards and reporting tools – regardless of hotel size or structure. Ideal Pricing further advances IDeaS’ approach to revenue management as the most sophisticated, yet easy-to-use solution available to hotel types of all sizes worldwide.
“Hotels need more than one approach to pricing to capture optimal revenues relative to their strategy, average length of stay, guest preferences and distribution needs,” said Sanjay Nagalia, Chief Operating Officer at IDeaS. “Our highly configurable G3 RMS gives hotels more pricing choices than any other vendor, and allows hoteliers to choose the approach that meets the needs of their business mix and distribution systems. Building on the power of our successful integrated approach, Ideal Pricing functionality incorporates pricing and inventory controls that allow hotels to maximize their revenue like never before.”
Ideal Pricing offers a flexible approach towards analytics-based pricing and provides options that generate demand- and market-relevant rates, automatically determining differential price points by room type rather than user-defined rules. System users have the option to configure rate levels or deploy continuous rates analytically optimized within a defined range. Ideal Pricing for transient business includes:
- Daily Pricing – often referred to as “BAR by Day,” produces a different rate for each night of a guest’s stay
- Length of Stay (LOS) Pricing – commonly called “BAR by LOS,” charges one blended rate based upon the arrival date and total duration of a guest’s stay
- Daily Continuous Pricing – allows hotels to identify their minimum and maximum public thresholds and rates are produced through analytical, continuous optimization within that range
IDeaS Ideal Pricing also offers enhanced Group Pricing for hoteliers. Designed to deliver even greater value to IDeaS G3 RMS, the new functionality provides clients with many powerful, time-saving features, such as:
- Group Pricing by Room Type – perform evaluations by room type to support specific group requirements, or at the hotel level to create a blended price quotation for reservations and sales to provide to meeting planners
- Alternative Date Recommendation – automatically recommend alternative dates that result in more incremental revenue and the most profitability for the hotel, by placing the group on other dates that still meet the request of the group inquiry
- Multiple Property Evaluation – enables placement of the business in the property that benefits the most to maximize incremental revenue across the portfolio
Lindner Hotels and Resorts, a leading European four-star hotel group, is transitioning their entire estate to IDeaS G3 RMS.
“We appreciate that IDeaS’ pricing decisions are analytically derived by room type, unlike other solutions that only price at the total hotel level and apply rules to price the different room types. With IDeaS, we benefit from understanding true demand by each room type, and by length of stay, and can price accordingly,” said Gunnar von Hagen, Corporate Director Operations and Central Project Management at Lindner Hotels and Resorts. “The ability to configure the pricing methodology by property is a distinct differentiator and provides us with the flexibility needed to work with our distribution partners and maximize revenue across our portfolio.”
