Discover various methods to influence RevControl’s recommended rate, such as managing business rules, adjusting the competitor index, setting up events, and optimizing room type mapping.
RevControl’s recommended rate can be influenced by several factors. Below are the key methods to increase or decrease the recommended rate.
Business Rules: Foundation for Rate Recommendations
Business rules form the core of rate recommendations and are a critical tool for influencing the recommended rate.
- Minimum and Maximum Rates:
Ensure that minimum and maximum rates are properly set. If the recommended rate is too low, increase the minimum rates. Conversely, if the rates are too high, lower the maximum rates. - Occupancy Supplements:
These supplements increase rates when occupancy reaches certain thresholds. Adjusting the supplement levels allows you to influence the rates. - Adjusting the Basis of the Occupancy-Based Recommended Rate:
You can choose to base the occupancy-based recommended rate on current occupancy (business on the books) instead of the forecast. This can be helpful if current occupancy is a better indicator for your rate strategy.
Competitor Index: Price Positioning and Competitor Management
The competitor index is crucial in determining the competitor-based rate recommendation. This index positions your hotel relative to your competitors based on criteria such as star rating, reviews, hotel condition, and location.
- Adjusting Price Positioning:
If you find that rates are consistently too high or too low, you can adjust the scores in the competitor index. By adjusting criteria such as star rating, reviews, hotel condition, and location, you can influence your hotel’s price positioning. This directly affects rates: a higher score results in higher rates, and a lower score in lower rates. - Temporarily Disabling Competitors:
When a hotel in your comp set has unrealistically high or low prices, it can distort the competitor-based rate recommendation. Temporarily disable the affected hotel in the competitor index to prevent unreasonable rate recommendations. Don’t forget to re-enable the hotel once their prices are updated.
Setting up events: increased demand and rates
Events directly impact demand and, consequently, rates. By entering important events like festivals, conferences, or school holidays into RevControl, you can effectively influence the recommended rate.
- Setting up an event:
Add events via Settings > Events and assign an impact level (low, medium, high). This helps RevControl accurately estimate demand during these periods. - Supplements for Events:
You can add supplements during events to increase rates during periods of high demand. This applies to all rate recommendations.
Room Type Mapping: accuracy in rate comparison
Accurate room type mapping is essential for accurate rate recommendations. This applies to both your PMS mapping and the competitor room type mapping.
- PMS Room Type Mapping:
PMS room type mapping forms the basis for the occupancy-based recommended rate, especially if room type forecasting is enabled. Ensure the mapping is accurate to guarantee precise forecasts and rates. - Competitor Room Type Mapping:
Check that room type mapping between your hotel and your competitors is correct. This helps to accurately compare prices and correct any rate discrepancies.
Switch to Occupancy-Based Rate: Flexibility in Rate Determination
If the competitor-based rate recommendation is often too high or too low, you can choose to automatically switch to the occupancy-based recommended rate after a certain number of days or from a specific date. This is useful to avoid unrealistic rates, especially during periods when competitors have not yet updated their prices.
- Setting Up:
You can find this setting via system or hotel settings > rate recommendation > switch the rate recommendation to compare to after X days or selected date. This ensures that RevControl automatically switches to the occupancy-based rate after a certain period.