Technology is playing an ever-greater role in the success of hotels, including small properties like bed and breakfasts, motels, and boutiques. Generating brand awareness, attracting customers, ...
28Apr
How to Maximize profits from your hotel booking segment by some solutions
The rise of Cloud services and the still-evolving potential of big data have brought a revolution to the travel industry which is still playing out, as noted by McKinsey as far back as 2012. One of the many benefits brought by big data is the ability to predict price fluctuations in hotel rooms and vacation resorts. This brings enormous potential for increased profit margins for travel distributors without raising the cost for travelers. Here is how hotel room resellers can raise their profits painlessly.
Coping with Constantly-Changing Hotel Prices
It’s nothing new to point out that the price of hotel rooms changes all the time. Dynamic pricing has been around for decades, with hotels, airlines and even sports teams dropping prices (for a variety of reasons) so as to fill their empty rooms or seats. However, cloud tools and big data have brought increased insight into customer behavior and motivation. This, in turn, enabled companies to tailor their pricing more closely to the level of demand and to change prices even more frequently.
Hotels now change their room prices an average of 18 times on average between the first reservation and the check-in date, with 22% of all reservations dropping in cost significantly. Travelers and travel distributors are trying to respond to these changes by rebooking their reservations once price drops to take advantage of price going. Unfortunately, more frequent price changes make it almost impossible to find the best moment to rebook the reservation. It’s also a headache to follow the changes and keep track of the reservation details including many different policies. Uncertainty about whether the cost could drop again before check-in only adds to the stress of coping with constantly-changing prices.
Keeping Ahead of the Game with Big Data
The question being asked by all travel distributors is what they can do to keep on top of these price variations? Hotelmize has the answer. We are utilizing cutting-edge big data technologies to track and predict the price change of millions of hotel rooms and vacation resorts worldwide. When the price drops, we know if it reached the bottom rate and so will you.
A combination of machine learning, in-house developed algorithms, and big data techniques enable Hotelmize to track your hotel reservation details across multiple providers. All of the accommodation details, terms and conditions and reservation requirements remain exactly the same; all that changes is the purchase rate. Our automated system is able to compare details faster than a human and take advantage of this opportunity on a large scale like no other can.
Increase Profit Margin Without Lifting a Finger
Once you’ve partnered with Hotelmize you won’t have to do anything else. Our smart solution increases your profit margin by between 30% and 50% without you lifting a finger. Based on financial trading models, our algorithms predict price fluctuations and follow the changing cost of your reservations.
Once the big data system informs us that the reservation has reached its lowest price, we immediately and automatically replace the original booking with the new cheaper one. You won’t need to spend energy manually checking up on prices or verifying that the details are correct. With the reassurance of our automatic rebooking system, you needn’t worry about missing out on the optimum moment, either. No time is wasted between the price hitting the bottom and the reservation is rebooked. You’ll just profit from the arbitrage.
Fully Automated and Compatible
Joining our list of happy clients won’t affect your workflow in any way and our solution is compatible with all booking systems. It runs smoothly in the background without any hiccups and with no overhead. You can continue with what you do best with the reassurance that we have got your back, helping you earn hundreds of thousands of dollars profit every month.
Tracking reservations details and following price fluctuations has become a task that is beyond purely human capabilities. An automated system can cope with the massive amounts of data, while machine learning produces an algorithm that can predict the optimum time to rebook the reservation. As travel distributors around the world scramble for solutions, Hotelmize offers a smart system that will keep you ahead of your competitors.
