Improve Booking Pace Using Hotel Dynamic Pricing

The Client: Hotel Ramee Guestline Bangalore is a 4 star hotel located about 30 minutes outside of Bangalore. The property has 96 rooms and is well known for being a weekend retreat as well as a conference and marriage venue.

The Challenges: Some of the key challenges faced by the hotel were:

  1. Booking pace: A majority of the reservations received by the hotel took place a day or two prior to arrival which impacted the forecasting ability of the hotel.
  2. Positioning: The hotel’s positioning did not reflect its product offerings or take into account the location of being in an industrial belt.
  3. Pricing: The pricing strategy adopted by the hotel was not in sync with its offerings and positioning in the market which resulted in driving business away.
  4. The hotel was located about 69 km away from the airport and is a 30 minute drive from Bangalore city thus making it a less preferred option for travellers coming to Bangalore.

The Strategy: Upon identifying the key challenges faced by the Client, the Revnomix team implemented the following strategy:

  • Positioning – Due to the hotel’s proximity to the industrial areas of Hosur, Electronic City and Bommasandra, we decided to reposition the hotel to attract more corporate business. A decision was taken to promote the hotel as an ideal weekend getaway destination for people living in Bangalore.
  • Improve Booking pace – The existing booking pace wherein rooms were booked just a day or two in advance resulted in inaccurate pricing and occupancy forecasts. With the use of data analytics tools and visualisation techniques, efforts were put in to improve the booking pace and improve the overall occupancy and forecasting processes.
  • Dynamic Pricing – Pricing was another big challenge faced by the hotel. With the use of dynamic pricing techniques and competitor price benchmarking, we decided to lower the rates to better reflect the hotel’s positioning and make it more appealing to prospective customers. As the booking pace improved, we were able to increase the prices to reflect the demand.