See how your rates perform against real-time market prices
By Marwan Batrouni, Senior Director and Practice Area Leader
Today, most hotels favor a dynamic pricing model where best available rate (BAR) is priced based on the hotel and market demand. And the lowest rate is published daily – sometimes even hourly. To stay on top of these constant changes, it’s important to get direct visibility into how your negotiated rates are performing in comparison to real-time market prices.
There are many variables that affect hotel pricing, one of which is publishing rates across various channels. This multitude of channels often leads to price discrepancies. The publicly available BAR in the GDS could be higher than what is quoted elsewhere. Or, the rate per night for a three-night stay could be less than the rate for a single stay. To identify if you are truly getting the best rate and what savings could be achieved, these variables must be considered. Constantly check in on your preferred properties and act on areas where BAR rates are lower than preferred rates.
Not only that, but modern travelers are taking their trips into their own hands and using online sites to research hotel prices. BAR rates listed on these sites will often look cheaper than your negotiated rates. It is important to monitor OTA and brand.com sites for comparison to your negotiated rates and educate travelers on your savings. Once they understand and trust you have negotiated the best possible rate, they are more likely to stay within your booking environment.
By having more visibility into how your preferred rates compare to BAR rates, you can maximize your hotel program savings and keep a pulse on constantly fluctuating rates. Take your new found savings opportunities back to suppliers to renegotiate with contract adjustments throughout the year.