Key Considerations in Rate Management for Electronic Channels 

The Obvious Way is Not Always the Best Way
Hotels first think to raise their rate to achieve higher ADR. However, a shift of, for example, 10 percent volume from one channel to a more lucrative channel may provide a higher revenue boost than a simple across-the-board rate increase. There are ways to grow the bottom line without increasing prices.

Understand Your Market
It is not simply about haphazardly raising or lowering your rates.  It is about defining the acceptable price point in your market for your product. Know your competitors—but don’t be ruled by their rates.

Look at the Big Picture
Do not become fixated on any one specific individual target market at the expense of an optimal mix.  Consider the influence of Transient, Leisure and Group bookings in your channel management strategies. Establish clear and measurable short- and long-term goals for each.

Keep Your Eye on the Ball—Profit
Lowering your rates in a channel with a higher profit margin—like your website where you don’t have to pay third party fees—may seem counterintuitive, but it could result in greater bookings through channels that don’t take a percentage. Result? Greater profit.

Rate management differs from one channel to the other, from one market to the next. Contact Sceptre Vice President Mona Ingram today to discuss how strategic rate management can make a difference to your bottom line.