In the highly competitive world of hospitality, revenue management is a critical aspect of driving profitability for hotels. To help hoteliers navigate this challenging landscape, BEONx has forged strategic partnerships with OTA Insight and Trivago. By incorporating predictive market intelligence and destination demand data into their algorithm, BEONx empowers hoteliers to make informed decisions and optimize their revenue management strategies like never before.
What is Destination Demand and Why you should consider it
Destination demand refers to the level of interest and demand for a specific location or destination among travelers. It provides insights into the popularity and attractiveness of a destination, which can directly impact the pricing decisions made by hoteliers.
Here’s why hoteliers should take destination demand into account when making strategic pricing decisions:
Market Understanding
Destination demand data helps hoteliers gain a comprehensive understanding of the market dynamics and trends specific to their location. By analyzing destination demand, hoteliers can identify the periods of high demand and popularity, allowing them to align their pricing strategies accordingly. Understanding the demand patterns enables hoteliers to optimize pricing during peak seasons or events and adjust rates during low-demand periods.
Competitive Positioning
Destination demand data allows hoteliers to assess their competitive positioning within the market. By comparing their property’s performance with other accommodations in the same destination, hoteliers can gauge their market share and adjust pricing strategies to remain competitive. If the destination is experiencing high demand, hoteliers may opt for slightly higher rates to capture the increased revenue potential. On the other hand, during low-demand periods, competitive pricing can help attract more guests and maximize occupancy.
Revenue Optimization
Taking destination demand into account enables hoteliers to optimize their revenue potential. By understanding the level of demand and the factors that drive it, hoteliers can strategically adjust pricing to achieve the optimal balance between occupancy and rate. They can identify periods of high demand and implement dynamic pricing strategies to capture maximum revenue. Similarly, during periods of lower demand, strategic pricing adjustments can stimulate demand and increase occupancy levels.
Pricing Segmentation
Destination demand data allows hoteliers to segment their pricing strategies based on different customer segments and their preferences for specific destinations. By understanding which types of travelers are attracted to the destination, hoteliers can tailor their pricing strategies to appeal to different market segments. For example, if the destination is popular among leisure travelers, hoteliers can offer attractive packages and promotional rates to capture their attention.
Strategic Planning
Destination demand data plays a crucial role in strategic planning for hoteliers. It helps them forecast future demand patterns, plan for inventory management, and allocate resources effectively. By analyzing historical destination demand data, hoteliers can make informed decisions regarding renovations, expansion, or marketing initiatives. It enables them to align their long-term pricing strategies with the projected demand trends and stay ahead of the competition.
In conclusion, destination demand provides valuable insights into market dynamics and traveler preferences. Hoteliers should consider destination demand when making strategic pricing decisions to optimize revenue, maintain competitiveness, and align their pricing strategies with the demand patterns specific to their location. By leveraging destination demand data, hoteliers can make informed pricing decisions and achieve sustainable profitability in the highly competitive hospitality industry.
Partnering with OTA Insight
BEONx’s collaboration with OTA Insight, the global leader in cloud-based hospitality business intelligence, is a groundbreaking development in revenue management. This partnership marks the first time a Revenue Management System (RMS) integrates forward-looking market insights from OTA Insight into its algorithm. The integration of OTA Insight’s Market Insight and Rate Insight+ data enhances BEONx’s position as the market leader.
Predictive Market Intelligence
With the integration of Market Insight, BEONx users gain access to invaluable predictive market intelligence. By analyzing extensive volumes of top-of-the-funnel traveler search data, Market Insight allows hoteliers to anticipate future market behavior and predict demand before it materializes. Real-time market heat maps, segmented data, and competition monitoring empower hotels to stay ahead of the curve and identify market opportunities.
Enhanced Competitive Analysis
Market Insight’s Smart compset feature equips hotels with instant alerts for market opportunities and cross-departmental data insights. By monitoring the competition effectively, hoteliers can tailor their strategies to capitalize on market demand and optimize revenue generation.
Unveiling the Competitive Landscape
The integration of Rate Insight+ provides hoteliers with total visibility into short-term rental and hotel data, enabling them to capture the full competitive landscape. With comprehensive information on short-term rentals in their geo-location, hotels can assess key performance indicators (KPIs) related to scale, occupancy, and rates relative to their own property. This consolidated view streamlines decision-making and empowers hotels to identify demand changes ahead of competitors, allowing proactive actions based on data-driven insights.
Trivago Partnership
BEONx’s commitment to revolutionizing revenue strategy continues with its partnership with Trivago, a leading global hotel and accommodation search platform. This collaboration pioneers the inclusion of destination demand data in the RMS algorithm, marking a significant milestone for the industry.
Unlocking Trivago’s Data Potential
Trivago’s data processes over 12 million daily accommodation searches, providing a wealth of information for hoteliers. The integration of Trivago’s data into BEONx’s platform equips hoteliers with a better understanding of market demand and early market signals for specific destinations. By saving time and consolidating data on a single platform, hoteliers can easily identify correlations, make more informed decisions, and improve their revenue management strategies.
Enhancing Recommendations and Forecasts
BEONx’s integration of Trivago’s destination demand data enables users to select the data that aligns with their product and destination, leading to more accurate recommendations, forecasts, and optimization strategies. The availability of a broader range of data empowers hoteliers to make data-driven decisions, enhance revenue management practices, and maximize profitability.
With its strategic partnerships with OTA Insight and Trivago, BEONx has solidified its position as an innovative force in revenue management. By incorporating predictive market intelligence and destination demand data into its algorithm, BEONx provides hoteliers with powerful tools to stay ahead of the competition, anticipate market trends, and optimize revenue management strategies. The integration of OTA Insight’s Market Insight and Rate Insight+ and Trivago’s destination demand data allows hoteliers to make more informed decisions, increasing their competitive edge and achieving sustainable profitability in an ever-changing market.
