How to take your competitors’ price rates into account

TravelLine Price Optimizer suggests to you the best possible price rates for every day. These suggestions can be based not only on the hotel’s occupancy rate but on the competitors’ price rates as well. The solution that makes it possible is TravelLine Rate Shopper. It monitors the rates of your competitor hotels. Let’s have a look at the Price Optimizer recommendations setting.

Set TravelLine Rate Shopper

Firstly, create a list of competitors and add a filter by room types. When calculating the best possible prices, TravelLine Price Optimizer will take the competitors’ price rates and the selected room types in the filter into consideration.

Select rules for considering competitor prices

1. Go to the “Price Optimizer” > “Settings” > “Main settings” > “Competitor prices accounting rules” tab.

2. Select an accommodation type, a meal plan, cancellation terms, a price level, and a room category that you would like to monitor in order to decide on your own price rates. For the room category, make sure to select one of the room types filters set before in TravelLine Rate Shopper.

Set the competitor-based pricing

1. Check if the recommendations calculation based on the competitors’ pricing is enabled in the settings.

To check, go to the “Price Optimizer” > “Settings” > “Recommendations” > “Competitor-based pricing” tab. If this option is not available, contact our customer support at support@travelline.pro.

1. Select the competitors’ influence quantity on the price recommendations: from 0% to 100%.

The higher the influence quantity, the more effect the price rates of competitors have on price recommendation compared to the hotel’s occupancy rate.

• The influence quantity of 100% — only the competitors’ price rates are taken into account; the occupancy rate has no impact at all

• The influence quantity of 0% — only the hotel’s occupancy is taken into account; the competitors’ rates have no impact at all

1. Select a dynamic rate plan and a room type to be mapped with the competitor hotels.

2. Select a spot on the market that you would like to take. TravelLine Price Optimizer will automatically monitor the price changes of your competitors and give recommendations based on the market spot you are striving to.

Example of the competitors’ influence on the recommendations

Let’s see how the influence quantity affects the recommended price rates.

• Date: July,4

• Occupancy rate: 55%

• Spot on the market: on top of the market

• Price levels from BAR1 (low occupancy) to BAR13 (high occupancy)

• Current price level: BAR1

Influence quantity — 100%

The occupancy rate is not taken into account, that’s why the recommended price level is BAR 6.

When mousing over a cell corresponding to date, you will see a pop-up with detailed information.

Click on the date on the top of the pop-up and open the “Competitors’ prices” tab. In this tab, you will be able to compare your hotel’s current price with the competitors’ prices.

Influence quantity — 0%

The competitors’ price rates are not taken into account. The occupancy rate is 55%. The recommended price level is BAR 4.

Influence quantity — 70%

The occupancy rate takes 30% of the influence. Based on the percentage, it is recommended to raise the current price rate to BAR 10.

Influence quantity — 40%

The occupancy rate takes 60% of the influence. Based on the percentage, it is recommended to raise the current price rate to BAR 7.