The Art of Automatic Rate Adjustment
In a world where travelers compare prices in just three clicks, setting your rates once per season is a strategy of the past. Today, revenue optimization depends on constant responsiveness. But who has the time to monitor the market 24/7? This is where automation comes into play.
1. Why Fixed Pricing Is Your Worst Enemy?
Selling a room at €100 all year may seem simple—but it’s a costly mistake:
High season: You sell out too quickly and miss the extra margin guests would have been willing to pay.
Low season: Your rates remain too high compared to competitors, leaving rooms empty.
2. How Does Automatic Rate Adjustment Work?
A modern hotel solution doesn’t just change prices according to the calendar. It analyzes complex data to determine the “right price”:
Booking history: Performance is compared with previous years.
Real-time occupancy: The fuller the hotel becomes, the higher the price of the last available rooms rises (supply and demand).
Local events: Trade shows, concerts, or festivals naturally increase room value.
Competitive price monitoring: The system tracks nearby competitors’ rates to keep you competitive.
3. The Three Major Benefits of Automation
| Benefit | Impact for Hoteliers |
| Time Savings | No more hours spent on Excel spreadsheets |
| Maximum Responsiveness | Prices adjust automatically; even while you sleep or are in meetings |
| RevPAR growth | Revenue per Available Room (RevPAR) typically increases by 10% to 20% |
Technical Note: RevPAR is calculated using the following formula:
RevPAR=Average Daily Rate (ADR)×Occupancy Rate
Automation makes it possible to balance these two variables to maximize the final outcome.
Conclusion: Technology Serving Your Profitability
Automatic rate adjustment isn’t meant to replace humans—it empowers them. By entrusting this repetitive task to your software, you ensure a dynamic pricing strategy that is effortless, accurate, and revenue-optimized.