Understanding the Impact of rate shopping on RevControl Rate Recommendations

Rate shopping plays a significant role in the calculation of rate recommendations for properties using the RevControl system. Here are the key points regarding its impact:

1. Connection to Competitor Rates: The rate shopping account is essential for retrieving competitor rates. Without this connection, RevControl cannot calculate a competitor-based recommended rate.

2. Dynamic Rate Recommendations: The presence of a rate shopping account allows for more dynamic rate recommendations. If only occupancy-based rates are considered, the recommendations become limited and less responsive to market changes.

3. Decision-Making Process: In the default setup of RevControl, the occupancy-based recommended rate is prioritized. However, if the competitor-based recommended rate is significantly higher or lower than the occupancy-based rate (by default: more than €5 higher or €10 lower), the system will switch to using the competitor-based rate for recommendations.

4. Overall Importance: The integration of a rate shopping provider is deemed to have a major impact on the effectiveness of rate recommendations. It enhances the ability to adjust rates based on competitive analysis, which is crucial for optimizing pricing strategies.

In summary, rate shopping is crucial for providing competitor rates that enhance the dynamic nature of RevControl's rate recommendations. Its absence would limit the system's ability to adapt to market conditions, making it a vital component for effective rate management.