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Competitive Price Setting Is Essential to Hotel Success

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October 21, 2019
Branded Content
Fran Worrall

Infor’s new Hospitality Pricing Optimizer uses artificial intelligence to automate the entire price management process

In today’s fast-paced multi-channel marketplace, gaining maximum visibility and control over pricing is critical to a hotel’s success. Properties of all sizes — from boutique hotels to large resorts —- must be able to set the right price at the right time in the right distribution channels if they want to beat the competition and boost the bottom line.

However, price-setting can be time-consuming, complicated and difficult to monitor, particularly for hotels that lack dedicated revenue management staff, said Paprika Le Bourgeois, director of customer success & product design at Infor, a global leader in business cloud software products. “In order to get pricing right at all times, properties not only have to compete in multiple spaces at the same time but also have to adjust their room rates as the market shifts during the course of the day. Under those circumstances, managing price adjustments manually can be overwhelming, if not impossible.”

Infor recently introduced the Hospitality Pricing Optimizer, or HPO, for organizations that want to ensure pricing accuracy according to real market data that changes frequently. The cloud-based solution, powered by artificial intelligence, uses real-time property management system and market information to set optimal room pricing across all channels. It also defines which hotels should be considered competitors from the consumer perspective and provides updates that reveal shifts in the market. Designed with maximum flexibility, the application enables hoteliers to monitor, analyze and make changes to pricing via mobile devices, keeping key decisionmakers connected regardless of their locations.

Additionally, the solution includes a pricing simulator that allows managers to test various scenarios before going live with changes. “It often makes sense to test the waters before pushing changes out to distribution channels,” said Le Bourgeois. “When the right price is found, it’s easy to turn that quick analysis into action that has a positive impact on revenue.”

Infor’s HPO integrates seamlessly with a variety of hospitality management solutions and property management systems. Moreover, its cloud deployment ensures that all hotel properties are connected and that the solution can easily grow with the brand. It also reduces the cost of IT infrastructure and ongoing maintenance.

Implementation is quick and can be measured in days rather than weeks. “We want customers to hit the ground running,” she said. Likewise, staff training is easy. The application’s clean and intuitive user interface can be tailored to individual job positions and responsibilities, and its central hub makes it simple to monitor price adjustments.

According to Le Bourgeois, artificial intelligence is at the core of the new solution. “AI has enormous potential to register changes in market trends and then learn as it goes,” she explained. What’s more, the solution’s mobile-friendly design allows managers to stay connected to room pricing wherever they are, without having to coordinate it. “The solution does that automatically according to the latest market data. It simplifies the process.”

Infor developed HPO to have a wide range of usage, including hotels that employ dedicated revenue management staff and those that don’t. The same goes for enterprise businesses with multiple properties as well as boutique hotels with only one location. “We see HPO as a smart ally to hoteliers of all kinds who want to spend less time setting prices and more time maximizing the value of goods and services at their properties,” she said. “Managers still have control over pricing. The solution simply takes care of the day-to-day grunt work so they can focus on guest-related matters.”

As important as competitive pricing is to a hotel, managers shouldn’t have to worry about it 24/7, Le Bourgeois concluded. “Infor’s HPO helps properties get it right and have as much control over the process as they need. By taking the guesswork out of room pricing, hoteliers are empowered to make better use of their time, be sure that room pricing is always accurate, and increase bottom-line profitability.”

©2019 Hospitality Upgrade 
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