IDeaS is excited to unveil the latest enhancements to our flexible pricing approaches for greater revenue growth and ease-of-use.
IDeaS has a history rich in pioneering future-proof technology that is still relevant today, as well as the continual development of innovations that solve ever-changing business needs and drive revenue.
IDeaS’ latest pricing enhancements were designed to give a boost to your hotel’s bottom line and optimize your revenue team’s time. As the pioneers of the “manage by exception” approach, we’ve always believed technology can skillfully handle the tactical duties and alert the revenue manager to tasks that need their attention to provide insight or guidance.
IDeaS G3 RMS’s Continuous Pricing feature enables you to optimally price each room type without rate tiers or fixed room type offsets, both of which are still common in many hotel pricing strategies and revenue tools.
Our Agile Rates feature provides a simple and flexible way to dramatically enhance rate management and distribution with a focus on driving revenue at opportune times and removing fixed offsets from the best flexible rate.
Put these features together, and you’ve got an unbeatable way to flexibly price key products such as advance purchase, packages, promotions, loyalty tiers, and more. These improvements bring long-touted change in revenue management to make pricing products and room types more dynamic.
Unrivaled Revenue Solutions
At their core, IDeaS revenue management solutions solve the issues dear to hoteliers’ hearts:
- Setting accurate pricing across all room types considering demand, guest willingness to pay, room-type hierarchy and the true influence of competitors
- Managing rate availability to ensure the property can balance accepting the most valuable business with maximizing revenue from available inventory
- Avoiding lost revenue due to rooms being left empty because of cancellations, no-shows, or inventory not being balanced (e.g., due to overselling lower-value room types).
Other revenue management systems use limited methods and cannot compete with IDeaS’ advanced, science-based approach. An RMS that is based on rules, only produces recommendations, only addresses pricing problems, or displays market data not incorporated into the system is outdated and will leave money on the table.
IDeaS G3 RMS is unique in that it continually learns and adapts, using advanced SAS® analytics to make all decisions, and folds overrides and all external data points back into the analytics to always ensure the best outputs.
Certainly, limited pricing tools are better than managing your rates through a spreadsheet. But when your hotel’s livelihood and profitability are at stake, why take partial measures when IDeaS puts you in the lead?
Consider two simple business problems that may result in revenue loss when using a less sophisticated RMS:
Only pricing the base room type in a full-service property: When base room type demand is high, the RMS drives up the price of that room type. All other room type prices are then driven up due to fixed offsets. This drives down the demand for those higher-valued room types (which was already low) and drives up the requirement to give free upgrades. It would be better to accept a smaller offset (e.g., $30 instead of $50) for the upgraded room type than give more free upgrades by overpricing higher-value room types.
Only the best flexible rate is directly priced by the RMS: All other rates—for example, advance purchase or your loyalty members’ discounted rates—use fixed percentages or rules that adjust these when occupancy changes. However, with the return of leisure business, most of the demand comes from these inflexible products. This hotel is missing out on the incremental revenue that true dynamic pricing can deliver. It is important to drive optimal revenue ahead of time by pricing these rates.
IDeaS proudly stands behind its core pricing tenets:
- To provide a unique and integrated approach to support pricing by room type that accounts for competitor pricing relative to the influence specific competitors have on the target properties, by room type.
- To solve for rate availability by arrival date, length of stay and room type with a dynamic control that adjusts in real-time as rooms are sold or cancelled. Business is accepted by considering the impact of accepting a reservation based on its value, across the total stay rather than simpler rate code or rate code by room type controls.
- To optimize overbooking at the hotel level to account for all expected cancellations, no-shows and group wash. Additionally, to understand the upgrade path at the property level and set room-type overbooking to maximize revenue by planning for upgrades where required.
As we begin to see demand recover in the coming months, now is the time to put your best foot forward and be ready to capture the most valuable business with a sophisticated, automated RMS ready-made for the modern hotel. To learn more about how IDeaS G3 RMS can help your hotel survive and thrive in the years to come, check out my recent interview with Event Intelligence TV.