YieldDynamic pricing agent Days to an hour
A price used to wait days to move, and now it moves within the hour.
The ask
A hotel group priced every night with revenue management software and a rate shopper, and read a pickup report by hand every morning. The group runs 23 hotels and 4,167 rooms. Discounts ran on fixed dates. The group wanted its prices to move with the market at any hour.
The rooms sold on Monday. The price moved on Saturday.
The late price
When a night lost 5 or more rooms in a day, 1 time in 9 the price rose within 48 hours. When it did rise, the median wait was 131 hours. On nights already 83% sold, 7 in 8 never rose before arrival.
The open discount
An early-booking discount ran to a set end date, whatever the night was selling. 213 nights sold out 5 or more days early with that discount still open, at €37 a room under the market.
The judgment in a few heads
Which night was filling, which competitor mattered and when to close a discount all lived with 4 revenue managers. Their tools sent 312 alerts a day, so the team stopped looking, and nobody could watch every hotel, every night and every channel at once.
“This is where I have the most difficulty. And you already found a series of improvements just by looking at the prices from outside.”
The agent reads the whole market and brings one decision.
The read
The agent reads the market, 2,436 hotels where the rate shopper followed 6 per hotel, with the group's own rates on every channel, weather, holidays and flights. It keeps a running picture of each future night, including the demand a sold-out night hides.
“You can see the complete market. That is the dream.”
The price
For every night, room type and rate, it models how demand changes with price, tests a ladder of prices against simulated demand, net of commission, and ranks what it finds by the euros at stake.
One alert
The revenue team gets one alert per hotel, the largest sum at stake first, with the reason in plain words and each number checked. A person approves every price, and the agent's record is scored night by night against the price the team would have set.
“Every revenue system we've had has these alerts. Then there are so many that revenue no longer looks.”
The live check
An approved rate took up to 41 hours to reach the last channel. The agent checks the live price on every channel after each change, and flags the agency selling below the group's own rate.
A price that waited 131 hours now moves within the hour.
It sees the market move while the office sleeps.
The morning
The pickup read that filled the revenue team's morning now runs every hour across every hotel, including the hours the office is closed.
The market
A rate shopper follows 6 names per hotel. The agent follows the whole class, so it sees a move across the market that 6 names never show.
The concert
34 days before a stadium concert, the agent caught a hotel cutting its price while its rooms sold at twice the usual pace and its class rose 61%.
Read
- The whole market, by class
- Own rates on every channel
- Weather, holidays, flights
The night
- One picture of each future night
- Demand, price, rooms left
The price
- Demand as a function of price
- Price ladder, net of commission
- Ranked by euros at stake
The team
- One alert per hotel
- A person approves every price
- Live price checked on every channel
The agent reads the group's tools. A price changes only when a person approves it.
Every reason is checked against the numbers behind it.
Every night is scored against the price the team would have set.
The team reads one alert and signs.
From the moment a night starts selling to the new price on every channel.
The morning with the pickup report is over. Every room carries the price the market will pay at that hour, and the revenue team reads one alert and signs.
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