We are excited to announce a significant update in a recent release for our hotel Revenue Management System (RMS). This update introduces a powerful enhancement to the Strategy Builder: the ability to evaluate and condition strategies based on the occupancy behavior of a group of hotels within the same portfolio within the hotel chain.
Prerequisites
Before viewing the new enhancements you will need to have the follow in place:
Access to Strategy Builder.
Multiple properties in your hotel portfolio.
Understanding of your portfolio's performance patterns.
Overview of the enhancement
In the strategy section of the RMS, under strategy, users can create custom pricing strategies tailored to specific circumstances or seasonal patterns.
The strategy builder provides a range of evaluation criteria that are listed below:
Occupancy.
Booking window.
Day of the week.
With this release, we are adding a new evaluation criterion: hotel cluster occupancy.
This feature enables users to incorporate the occupancy levels of a selected group of hotels within the same chain into their pricing strategies. By doing so, users can:
Optimize pricing decisions based on collective performance trends.
Respond dynamically to shared market conditions.
Enhance coordination across properties in a portfolio.
Enhancement of building strategies
The below outlines how to implement new features regarding building a strategy:
Define a group of hotels (referred to as a "hotel cluster") from within their portfolio.
Use the occupancy data of this cluster as a key input for strategy evaluation.
Apply conditional logic to adjust pricing strategies based on the behavior of the selected cluster.
For example, if the cluster occupancy exceeds a specified threshold, the system can automatically adjust room rates to capitalize on high demand across the portfolio.
The system even allows for giving different weight to each hotel, therefore, the average occupancy of this group of hotels is a weighted average. Please note that the sum of all the weights must always be 100% for the system to allow it to be established, otherwise a notification will inform us of the error.
Benefits for our users
The benefits of the enhancements are outlined below:
Holistic insights: Gain a comprehensive view of occupancy trends across multiple properties.
Proactive strategy adjustments: Make informed decisions by considering group-wide performance.
Increased flexibility: Tailor pricing strategies with greater precision to align with portfolio-level goals.