RevControl’s rate recommendation combines occupancy-based and competitor-based rates. The system defaults to the occupancy-based rate but switches to the competitor-based rate if it differs too much.
RevControl’s rate recommendation consists of two main components: the “occupancy based rate recommendation” and the “competitor based rate recommendation.”
Occupancy Based Rate Recommendation:
This rate is based on the expected occupancy and the hotel’s internal pricing strategy, including the minimum daily rate and any occupancy supplements. It is the default recommendation, as it allows the hotel to follow its own pricing strategy and optimize for expected demand.
Competitor Based Rate Recommendation:
This rate is determined based on the hotel’s position in the competitor index, which compares the hotel with similar competitors using various criteria. Refer to the competitor index guide for more information.
Options for determining the final rate recommendation:
RevControl provides two options for determining the “combined recommended rate”:
- Conditional selection: RevControl typically suggests the occupancy-based rate. However, if this rate is not aligned with the market, the system switches to the competitor-based rate. This occurs when the occupancy-based rate is at least five euros higher or ten euros lower than the competitor-based rate. These thresholds can be adjusted via Settings - System settings (for the entire chain) or Hotel settings (per location), using the settings “Low threshold for conditional combined rate” and “High threshold for conditional combined rate.”
- Weighted average: Instead of switching between the two recommendations, the “combined recommended rate” can also be a weighted average of the occupancy-based and competitor-based rates. This option can be selected via Settings - System settings (for the entire chain) or Hotel settings (per location) - Rate recommendation - Combined recommended rate - Weighted average of competitor and occupancy based recommendation. The weight assigned to each rate recommendation in a weighted average can only be set at the chain level by the Customer Success team.
The “combined recommended rate” is the final rate advised by RevControl and can be set using either of these methods. In the Rate Calendar’s daily information icon, you can see which method was used and the balance decision made. When auto publish is enabled, this rate is sent to the property management system or channel manager.
Example 1: The “Occupancy based recommended rate” is market-aligned, close to the “Competitor based recommended rate.”
Example 2: The “Occupancy based recommended rate” is too low, and RevControl suggests increasing the price to profit from the expensive competition.
Contact information for support:
To set the weights in the weighted average option or for other inquiries, you can contact our Customer Success team at support@revcontrol.com or through the chat function in RevControl.