The mantra of revenue management has always been to sell “the right product at the right price and the right time”. We have then added another dimension with “through the right channel”. The result being that these days, trying to obtain the highest possible revenue has become harder than ever. Customers immediately see the room rates of all competitors in a staggering number of channels, making it difficult to always offer the optimum rate in all of them. Add to that the diversity of the market segments and you have even more factors to consider in your pricing strategy.
Our new module SIHOT.Rates+ is the continuation of our BAR level development. It was designed specifically to build complex rate systems which give you the possibility to quickly adapt rates according to market changes by using a variety of different components. SIHOT.Rates+ gives you flexible rate structures for maximum revenue.
How do you keep track of all your different rates? Easily – by using derived rates! Derived rates reduce the manual rate maintenance to a minimum, as any change to the base rate changes the price of the derived rates at the same time.
Reacting quickly to market changes has become more and more important for the distribution across online platforms. Hoteliers must therefore, establish rate structures that are flexible, yet simple and easy to manage.
Base Rate: BAR Level or Open Pricing?
The starting point of this fast revenue system is a base rate. This may be a regular BAR level or a substantially more dynamic open price. Both are possible – the combination is the key!
The well-known BAR offers an effective way to maximise revenues. The individual BAR levels contain set rates applicable for days with high or low demand and any in between. In the BAR production dialog, you simply specify which BAR level will be applied on which day. Accordingly, bookings show this pre-determined rate.
The open pricing function in SIHOT, however, is a completely open structure, where any price at all is possible. This allows for fluid rate values with small nuances, which may generate valuable extra income for your property.
How to Benefit from Derived Rates!
The open pricing function in SIHOT, however, is a completely open structure with fluid prices.
In addition, you can use derived rates in multiple tiers! This is how it works: your base rate consists of a floating price for accommodation only. From this, you derive a rate per room, whereby each category is given a separate price by adding a fixed amount or a percentage. These category supplements, in turn, may vary according to different seasons or specific defined periods. The next tiers may consist of different boards, for example breakfast and half board. Now apply a discount on the rate for half board for arrivals on a Friday or Saturday with a minimum 2 nights stay – and there’s your “Weekend Special”.
Derived rates are very convenient for diversified packages that target specific markets and for special promotions. They are especially useful for corporate business, together with advance purchase and non-refundable rates that are becoming increasingly popular for online booking platforms.
Reservations with Derived Rates
In reservations, SIHOT always shows the final total. No matter if guests reserve online or if your staff take bookings via phone – you only need to enter the chosen package with the rate that SIHOT has already calculated accordingly.