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December 21, 2023

How to Choose Hotel Pricing Software

Today, hotels that use automated pricing software are at a distinct advantage, but how do you choose the right hotel pricing software?

Hotel Pricing Software RoomPriceGenie shown on a laptop

Automation is changing the accommodation business. It’s helping hoteliers make smarter decisions and freeing them up to take better care of guests. This is especially crucial for small, independent hotels with limited time and resources.

Today, hotels that use automated pricing software are at a distinct advantage. They have more time, experience less stress, and generate more revenue. 

However, not all pricing solutions are the same. When shopping for pricing software, it’s important to do your research. You don’t want to pay for complex features you will never use, nor do you want to compromise on a cheap solution with limited capabilities. 

 

Features to Look for in Automated Pricing Solutions

For small, independent properties, here are the features to prioritize.   

  • Ease of use. If the solution is complicated, staff may avoid it. A small property needs software that is quick to install, simple to learn, and easy to operate.
  • Transparency. The dashboard should provide a calendar of daily hotel performance, including occupancy, ADR, revenue, and rooms left to sell, along with a breakdown of factors to explain pricing decisions. 
  • Algorithmic pricing. Be wary of simple rules-based tools that automate pricing based on occupancy or competitor rates. An algorithmic pricing model factors in a range of internal and external data sources to make better pricing decisions. 
  • Smart automation. Many tools provide recommendations only, requiring the user to approve rates and manually upload them to the PMS. To truly save time, find a solution that automates pricing decisions and uploads them to the PMS for you. 
  • Control. You should always maintain strategic control of your pricing. This means being able to choose between decision and recommendation mode, set pricing aggressiveness and target occupancy, and implement fixed rates and overrides.
  • Forward-looking data. Rather than rely on historical data and risk repeating past mistakes, the solution should make pricing decisions based on current conditions, adjusting rates as demand patterns change. 
  • Two-way connectivity. The software should be cloud-based to allow user access from anywhere and feature a two-way integration with your PMS or channel manager to enable automatic updates several times a day. 
  • Support. To avoid upfront costs, ask about a monthly subscription model and free onboarding, as well as a free trial, fast setup, and flexible cancellation. Also important are customer support, advisory services, and learning opportunities.

Automated pricing software is a game-changer for independent hotels. The longer you delay in investing in the solution, the more revenue opportunities you stand to lose to savvier, more tech-forward competitors. Start your free trial today. 

Want to learn more? Checkout our free guide, How to Capture More Revenue with Automated Pricing

Want to learn more about how RoomPriceGenie can help you?
Book a demo and learn how hoteliers like you are using RoomPriceGenie to drive revenue through better pricing.
Reach out today. We’d love to connect.

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