A rate shopper is an essential tool that hoteliers use to monitor and compare room prices with those of their competitors. The hospitality industry is ever-changing, so it is important for the hotels to set the right price because it will play a key role in the guest's booking decision.
To stay competitive, hotels must manage prices efficiently across different channels such as online travel agencies and global distribution systems.
Rate shoppers are an essential part of revenue management. They provide hotels with up-to-the-minute pricing information, ensuring that room rates stay consistent across platforms, helping prevent discrepancies that can hurt relationships with OTAs.
Using a rate shopper tool helps hotels to take data driven decisions, fine-tune their prices and have better revenue generating opportunities.
How does a Rate Shopper work?
A rate shopper tool takes data from different sources and provides invaluable insights to the hoteliers. Here's how it works:
Data
A rate shopper scans different platforms such as OTAs, direct booking platforms and competitor sites. It fetches information related to room types, offers, promotions, etc to ensure hoteliers stay up-to-date on the market trends.
Rate Comparison
Once the data is collected, rate shopper compares your hotel's prices with properties similar (section is done based on location, star ratings and packages) to yours. If it detects any discrepancies, it alerts the managers so that they can make adjustments to stay competitive.
Rate Parity Monitoring
Maintaining rate parity is very important for hotels, because discrepancies can lead to penalties from online travel agencies and also question guest trust.
A rate shopper monitors all channels and alerts hotels if their is any deviation. It ensures prices stay the same across all channels at all times.
Consistent pricing across all distribution channels is vital in the hospitality sector.
OTAs can penalize hotels if prices don’t match across platforms. A rate shopper keeps track of your rates across all channels and alerts you to any differences, helping you maintain consistency and stay in the clear.
Key Benefits of Using a Rate Shopper Tool
Stay Competitive
Keeping an eye on competitor prices in real-time helps you adjust your rates and stay ahead. A rate shopper ensures your hotel offers competitive prices that appeal to guests looking for the best deals.
Ensure Rate Parity
Maintaining uniform rates across all channels builds trust with guests, who expect consistent pricing regardless of where they book. Hotels with consistent pricing also enjoy better visibility on OTA platforms, minimizing the risk of penalties.
Optimize Revenue
Dynamic pricing is essential for maximizing profits. Rate shoppers allow hotels to adjust room prices in response to market trends and demand, ensuring rooms are sold at the highest possible rate during peak times and at attractive rates during slow periods.
Save Time and Minimize Errors
Monitoring competitor rates manually is time-consuming and prone to human error. Automating this process with a rate shopper saves time and ensures that pricing decisions are always based on the latest data, reducing the likelihood of mistakes.
Boost Occupancy
Rate shoppers help hotels adjust prices dynamically to match demand. By lowering rates during off-peak periods, hotels can attract more bookings. Similarly, during high-demand seasons or events, prices can be raised to maximize revenue while keeping occupancy high.
Strategic Use of Rate Shopper Tools
To get the most value from a rate shopper, hotels should use it as part of a broader revenue management strategy. Here are some effective ways to use these tools strategically:
Dynamic Pricing Adjustments
The hospitality market is always changing due to local events, holidays, and travel seasons. Rate shoppers allow hotels to adjust prices instantly based on market fluctuations, ensuring they remain competitive and profitable.
Read Also: How to Gain More Revenue with Dynamic Pricing
Counter-Strategies
A rate shopper provides insights into competitor promotions and pricing tactics. With this knowledge, hotels can launch targeted offers or promotions to outmatch their competitors. For example, if a competitor offers a discount, your hotel could respond with an added perk, such as free breakfast or a late checkout.
Targeted Promotions
Using rate insights, hotels can craft promotions during periods of high demand, such as festivals or holidays. These targeted promotions help fill rooms quickly and maximize revenue during busy periods.
Forecasting and Planning
Rate shoppers provide historical data, which allows hotels to predict demand more accurately and make better long-term pricing decisions. Combining this data with real-time trends ensures more effective revenue forecasting.
Features to Look for in a Rate Shopper Tool
Not all rate shopper tools are created equal. Here are the key features to consider when selecting one for your hotel:
Real-Time Updates
In a fast-moving market, hotels need real-time data to make informed pricing decisions. Look for a rate shopper that continuously monitors competitor rates and provides alerts when significant changes occur.
Customizable Comparisons
Your hotel may not compete with every property in the area. A good rate shopper should allow you to define competitors based on location, amenities, and market segment for more accurate comparisons.
Rate Parity Monitoring
Ensuring consistent pricing across all booking platforms is critical. The tool should monitor your hotel’s rates across channels and notify you if inconsistencies arise.
Historical Analysis
When hotels have access to the past pricing trends, it helps them make better, data-based long term decissions. Through this feature, they can study the seasonal patterns (High and low demand) and anticipate changes accordingly.
AxisRooms Rate Shopper helps hotels track competitor prices across OTAs and booking platforms in real time. It offers practical insights, allowing you to adjust rates quickly to match market conditions and attract more bookings.
With custom competitor tracking and automatic alerts for pricing differences, it ensures your rates stay consistent across channels. It also integrates smoothly with your PMS and channel manager, making price updates fast and easy.
This tool simplifies rate management, giving you more time to focus on running your hotel while staying ahead of the competition.
AxisRooms Hotel Rate Shopper
AxisRooms Rate Shopper keeps you updated on competitor prices across OTAs and booking sites in real time. It helps you make quick, data-backed pricing decisions to attract more bookings and stay ahead in the market.
You can set your own competitor list and get alerts if there’s a pricing mismatch across channels. The tool also connects with your PMS and channel manager, so you can update rates instantly across all platforms.
By automating rate tracking, it takes the pressure off your team, giving you more time to focus on guests while keeping your prices right where they need to be.
