#precium software

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Optimising Revenue with Smart Dynamic Pricing for Hotels

Mastering Dynamic Pricing Strategies for Accommodations

Learn how dynamic pricing can transform your room revenue. Discover proven strategies, tools, and tips to master real-time rate optimisation.

In the ever-evolving world of hospitality, pricing is more than a number — it’s a strategy. With customer behaviour and market conditions changing in real time, static pricing models not the right choice to improve profitability. That’s where Dynamic Pricing comes in.

This blog will help you understand what dynamic pricing is, why it’s vital for Hotel Industry, and how to implement it effectively to maximise Revenue and Profitability.

What Is Dynamic Pricing?

Dynamic pricing means fluctuations in the price points depending on various factors like Seasonality, Demand Levels, Market Condition, Socio-economic situation, Weather Forecast, etc. All the other Rates are derived from the parent rate. When we fluctuate the parent rate, all the rate plans connected to the parent rate plan will update automatically.

Latest trends shows offline Travel Agents & Negotiated Corporate clients are also moving to Dynamic Pricing model.

Benefits of Dynamic Pricing

Maximise ADR over High Demand days/period

Maximise RevPAR through Occupancy over Low Demand days/period

Time saving- update only parent rate plan, all the derived rate plans will update automatically

Low probability of making a mistake while updating Price Points

Key Factors That Influence Pricing

Pricing decisions should be based on data-driven insights. Key variables include:

Demand trends (holidays, events, weather)

Booking windows (how far in advance people book)

Competitor pricing (Monitor fluctuating price points)

Inventory levels (room availability)

Market segments (Corporate vs Leisure, Groups vs FIT, Social vs Business)

Proven Dynamic Pricing Strategies for Hotels & Rentals

✅ Use Price Sensitivity to Guide Changes

Understand how price-sensitive your guests are. For example, leisure travellers are more responsive to discounts, while business travellers may prioritise convenience over cost.

✅ Set Rate differentiated Pricing

Create and Implement Retail Pricing Strategy to cater to a larger target Audience. Example:

Advance Purchase Rate with non-refundable cancellation policy at a discounted Rate for Early bookers.

Minimum LOS Rate at a discounted Rate for bookers staying for a longer stay.

Value add-ons Add Breakfast, Lunch, Dinner, Spa, etc to create a value Package

✅ Monitor Competitor Pricing

Monitoring Competitor Price Point fluctuations gives us an indication of the Market Demand Levels. Automated Rate Shopping Tool helps the Hotels to keep a close watch on Competitor Pricing behaviour.

Conclusion

Mastering dynamic pricing is about being proactive, strategic, and data-driven. When done right, it empowers you to:

Maximise RevPAR

Improve profitability during both peak and off-peak periods

Whether you’re managing a boutique hotel, a resort, or short-term rentals, embracing dynamic pricing is critical.

Need help implementing dynamic pricing for your property?

Collaborate with RedSKY Hospitality revenue management specialists or take advantage of Precium Automated Pricing Solutions to maximise your property’s Revenue potential.

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Precium and the Evolution of Revenue Management: Why Rate Shopping & Automated Pricing Recommendations Are the Future of Hospitality

In today’s fast-paced world, the hospitality industry is experiencing a seismic shift. The days of managing hotel pricing with guesswork and gut feelings are long gone. Enter Precium, a sophisticated Automated Pricing Recommendation tool designed to help hoteliers maximize revenue, increase profitability, and stay ahead of the competition in an increasingly complex market.

At the heart of Precium is a suite of Revenue Management Solutions that combine real-time data with powerful market insights. Whether you’re managing a boutique hotel, a mid-tier chain, or a luxury brand, Precium tools will revolutionize the way you approach pricing, revenue, and profitability.

But how exactly does Precium and its integrated rate shopping feature work? And why should you, as a hotelier, care about automated pricing recommendations? Let’s dive in.👇

The Shift from Traditional to Automated Revenue Management: A Need for Innovation

For decades, hotels have used traditional pricing strategies, relying on historical data, a few key demand drivers, and a bit of intuition to set room rates. However, this method often left substantial revenue potential untapped. Manual pricing, while reliable in its heyday, simply cannot keep up with the complexity of modern markets.

Today, technology is the beating heart of hospitality. With travellers booking rooms across various platforms, changing their preferences by the minute, and comparing rates at the click of a button, hoteliers need more agile solutions. This is where automated pricing comes into play, allowing for real-time adaptability.

The latest trends in Revenue Management Software now embrace automation, AI, and data science to deliver more accurate pricing strategies. These tools capture and analyse large volumes of data to recommend room rates that maximize revenue without alienating price-sensitive guests. Precium is at the forefront of this trend, using a combination of AI-driven insights and advanced algorithms to keep you one step ahead of your competitors.

👉Rate Shopping: The Secret Weapon for Staying Competitive

Before we talk about Precium Automated Pricing Recommendation, let’s explore rate shopping. It sounds like something your bargain-hunting aunt might do on Black Friday, but in the world of hotels, rate shopping is far more advanced.

In essence, rate shopping tools allow hotels to monitor the room prices of their competitors across a variety of booking channels. Want to know what the boutique hotel down the street is charging for a Deluxe Room? Curious about how your rates stack up against those of a 5-star competitor? Rate shopping tools can provide you with that real-time intel. This allows you to make strategic decisions on the fly, ensuring your prices are always competitive.

However, gathering that data manually would take hours, even days — time you simply don’t have. That’s why Precium automated rate shopping feature is a game-changer. It constantly monitors competitor pricing and feeds that information back into the system. In combination with Precium Automated Pricing Recommendation engine, it helps you adjust your rates with speed and precision, ensuring you never leave money on the table or lose out to undercutting competitors.

👉What is Automated Pricing Recommendation?

Picture this: It’s peak season, and your hotel is nearly at full capacity. Should you raise your rates? By how much? And how will this affect your booking pace? Or maybe it’s low season, and you need to fill as many rooms as possible without slashing your rates too dramatically.

This is where Precium Automated Pricing Recommendation tool comes in. Precium doesn’t just crunch numbers; it provides actionable insights. Powered by artificial intelligence, Precium analyses historical data, booking patterns, market trends, competitor pricing, and a host of other factors to suggest optimal room rates.

Think of it as a highly skilled revenue manager who never sleeps. It takes the guesswork out of pricing, allowing you to focus on what you do best — delivering top-notch guest experiences.

Why do you need this? Because setting the right price at the right time is the most critical driver of your hotel’s revenue. According to recent studies, hotels that use automated revenue management systems like Precium see up to a 10–15% increase in RevPAR (Revenue Per Available Room) compared to those relying solely on manual methods. It’s not magic; it’s math.

👉Revenue Management: Why It’s More Crucial Than Ever

It’s not just about the room rate anymore. Today’s revenue management strategies encompass all hotel revenue streams, including F&B, spa services, and ancillary offerings. The more sophisticated your approach, the better equipped you are to maximize your hotel’s total revenue potential.

With Precium, hoteliers have a comprehensive Revenue Management Solution. Whether you’re looking to forecast demand, adjust your pricing, or optimize your inventory, Precium does it all. By gathering data from multiple sources, Precium gives you a 360-degree view of your business, enabling you to implement revenue strategies that work in real time.

👉Latest Trends in Revenue Management Software: Where Precium Leads

As we look ahead, Revenue Management Software is evolving in three key ways:

🟢 AI and Machine Learning Integration: AI is becoming more integrated into Revenue Management Solutions, making systems smarter, faster, and more adaptable. Precium is already utilizing AI to deliver more accurate pricing recommendations based on live data and predictive analytics.

🟢Personalization: Guests expect personalized experiences, and the same goes for pricing. Precium can segment guests by demographics, booking behaviours, and preferences, allowing you to tailor pricing strategies for each market segment.

🟢Cloud-Based Solutions: The flexibility and scalability of cloud-based systems are unmatched. Precium offers cloud-based revenue management, enabling hoteliers to access their data from anywhere and scale their operations effortlessly.

These trends are not just innovations — they’re necessities in a competitive industry. Hotels that fail to adopt these technologies risk being left behind.

👉The ROI of Revenue Management: Why Investing in Precium Pays Off

Let’s be honest: Revenue Management Software is an investment, but it’s one that yields impressive returns. In fact, according to a recent study, hotels that implement automated revenue management systems see an average ROI of 7–12 months. After that, it’s pure profit.

With Precium Automated Pricing Recommendation, you don’t just set competitive prices — you set the right prices. It’s about understanding demand in real-time, responding to changes faster than your competitors, and ensuring every guest pays the optimal price.

👉Why You Need Precium Now

In an era where technology is revolutionizing every aspect of business, can you afford not to upgrade your revenue management system? Precium doesn’t just keep you competitive — it gives you a distinct advantage.

With rate shopping, automated pricing recommendations, and a team of experienced revenue managers behind it, Precium is the solution you need to boost your hotel’s profitability and stay ahead of the game.

Stop leaving money on the table. Let Precium help you unlock the full potential of your hotel’s revenue today.

✍Written by Mohnish Singh

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𝐀𝐧𝐧𝐨𝐮𝐧𝐜𝐞𝐦𝐞𝐧𝐭!

Kamat Hotels (India) Limited has signed up with Precium Technologies for Automated Revenue Management System, Real time Competitor Rate Shopping Solution and Automated Upcoming City Events!

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𝐑𝐞𝐚𝐥-𝐓𝐢𝐦𝐞 𝐑𝐚𝐭𝐞 𝐌𝐨𝐧𝐢𝐭𝐨𝐫𝐢𝐧𝐠

𝐑𝐞𝐚𝐥-𝐓𝐢𝐦𝐞 𝐑𝐚𝐭𝐞 𝐌𝐨𝐧𝐢𝐭𝐨𝐫𝐢𝐧𝐠 Track Competitor prices instantly across multiple platforms.

Precium

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Optimize Pricing , Maximize Revenue ! Contact us to know more and get started today! Precium

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Live Rate shopping & City Events at Your Fingertips!

Precium: Live #rateshopping & #cityevents at Your Fingertips!

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Precium: Where Live Rates & City Events Drive Success! Stay ahead, optimize pricing, and boost your revenue.

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Transform your Pricing Strategy 👉Book a Demo Now!

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Revolutionize Your #PricingStrategy with Precium! Get accurate recommendations and powerful analytics—start now!

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𝐂𝐡𝐨𝐨𝐬𝐢𝐧𝐠 𝐭𝐡𝐞 𝐑𝐢𝐠𝐡𝐭 𝐑𝐞𝐯𝐞𝐧𝐮𝐞 𝐌𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭 𝐒𝐨𝐟𝐭𝐰𝐚𝐫𝐞?

Selecting the Right Revenue Management Software is Crucial. Consider these Five Factors:

🔵𝐈𝐝𝐞𝐧𝐭𝐢𝐟𝐲 𝐘𝐨𝐮𝐫 𝐍𝐞𝐞𝐝𝐬: Look for Software that aligns with your Revenue Strategy, Incorporating Forecasting Tools and Budget-Building Functionalities. 🔵𝐅𝐥𝐞𝐱𝐢𝐛𝐥𝐞 𝐔𝐩𝐝𝐚𝐭𝐞𝐬: Ensure the Software allows for On-Demand Optimization, Enabling Instant Rate Updates. 🔵𝐌𝐨𝐝𝐞𝐫𝐧 𝐌𝐞𝐭𝐡𝐨𝐝 𝐨𝐫 𝐓𝐞𝐜𝐡𝐧𝐨𝐥𝐨𝐠𝐲: Opt for Software powered by Cutting-Edge Algorithms, Especially Crucial in Volatile Markets with Rapidly Changing Trends. 🔵𝐔𝐬𝐞𝐫-𝐅𝐫𝐢𝐞𝐧𝐝𝐥𝐲 𝐈𝐧𝐭𝐞𝐫𝐟𝐚𝐜𝐞: Evaluate the ease of use, Preferring Solutions that Offer Both Automated and Manual Controls for a Balanced Approach. 🔵𝐕𝐞𝐧𝐝𝐨𝐫 𝐒𝐮𝐩𝐩𝐨𝐫𝐭: Research the Reputation and Expertise of the Software Provider, Ensuring they have a Track Record of Success and Expert Talent.

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𝐌𝐲𝐭𝐡𝐬 𝗩𝘀 𝐅𝐚𝐜𝐭𝐬

❌𝐌𝐲𝐭𝐡𝐬: "Rate shopping tools are expensive and not worth the investment."

✅𝐅𝐚𝐜𝐭𝐬: "Exceptionally, there are certain systems in the market that work on live rate shopping and provide accurate data.

For example, Precium Rate Shopping is a budget-friendly system with advanced mechanisms that ensure data accuracy and help hotels make informed decisions."

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𝐌𝐲𝐭𝐡𝐬 𝗩𝘀 𝐅𝐚𝐜𝐭𝐬

❌𝐌𝐲𝐭𝐡𝐬 -“Rate Shopping Software is only for large Hotels or chains.” ✅𝐅𝐚𝐜𝐭𝐬-Rate shopping software benefits all types of hotels, from boutique to large chain, small to large inventory. It helps any property keep track of competitors' rates, optimize their own pricing strategies, and maximize revenue.

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𝐃𝐈𝐃 𝐘𝐎𝐔 𝐊𝐍𝐎𝐖 ‼ Precium helps you grow #revpar by suggesting accurate day-wise pricing points."

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𝐃𝐈𝐃 𝐘𝐎𝐔 𝐊𝐍𝐎𝐖 ‼

“Precium Rate Shopping Software works on live systems, providing Real-Time and up-to-date rates across different channels and platforms with just a click of a button.”

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𝐖𝐡𝐚𝐭 𝐏𝐫𝐞𝐜𝐢𝐮𝐦 𝐒𝐞𝐫𝐯𝐢𝐜𝐞 𝐎𝐟𝐟𝐞𝐫𝐞𝐝

🟢Revenue Management System (RMS) 🟢Rate Shopping Tool

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𝐏𝐫𝐞𝐜𝐢𝐮𝐦 𝐃𝐚𝐬𝐡𝐛𝐨𝐚𝐫𝐝 – 𝐅𝐨𝐫 𝐚 𝐪𝐮𝐢𝐜𝐤 𝐏𝐞𝐫𝐟𝐨𝐫𝐦𝐚𝐧𝐜𝐞 𝐎𝐯𝐞𝐫𝐯𝐢𝐞𝐰

✅Last Night Performance ✅14-Day Occupancy Vs Price Grid ✅MTD and YTD Performance Vs Previous Years ✅Pick-up Summary for Current Month +2

𝐏𝐫𝐞𝐜𝐢𝐮𝐦 𝐃𝐚𝐬𝐡𝐛𝐨𝐚𝐫𝐝