IA: Live Rate

Segments → ≠ Optimal Predictive Rate

Why AI??

If in your HOTEL your pricing is complicated, slow and in the end possibly incorrect, in Class One we have created the solution IA: Live Rate, let our system do the work for you.

Parameters such as: forecast of occupation, release, events, area and competition occupation, AVR area and competition, different behavior studies (pickUp) upcoming and generic, Maximum / Minimum Rate, Rules for Meteorology …, according to the criteria of the Hotel.

It is intended that in a simple way for the “human” we make the system give us tariff data according to the different segments, that even we would not be able to make them so accurate and profitable.

 Javier González Otero

CTO Class One Group

We proceed to a brief explanation of the algorithm system of our Live Rate. (*)
(*) This module is sold separately

Basic parameters

  • We must consider the moment in time the situation of our occupation in the hotel, it is clear that a lower occupancy should correspond to a lower price, and the opposite, so we must study the occupation sections that may determine or affect our price list.
  • When a reservation is going to be made, what we like the most is to have future occupancy assured, with what the greater the distance the lower the price (early booking or early bird), as in the previous case the sections to be implemented should be studied.
In both cases they can be applied to the “%” sections of increase or decrease
To set a price policy for a Hotel, the first thing we must know is what our minimum and maximum rates may be (in the “maximum” case, it may lead us to indicate that it should not be like that, it is clear that at a certain moment , for many circumstances we could charge exorbitant prices, now I think that this “taking advantage” of the situation could affect us in the future, however those who consider that they can set prices well above their possibilities by defining the rates to this is / will be your decision). Of course, these maximum and / or minimum rates are determined by the room types, just as we could have more than one maximum-minimum rate affecting depending on which channels, or segments.

We must always bear in mind that there may be different rates according to market segments, channels, etc, …, that at no time is there a single / single rate, being able to have as many as we want and with any of the previous data (sections ) as subsequent different correction factors, (eg. For one channel, the regime prices will always be maintained, but for another market segment they will vary according to the algorithms).

Corrective parameters

  • It must be analyzed if we are going to consider at the time of the basic calculation, if it is about the overall occupancy of the hotel, or the occupancy of each room.
  • Consider a correction factor according to the events calendar.
  • Modify or not Regime Rates, Minors, Extra Persons. There will be hotels that consider that the Regimes do not depend on the automatisms that are set according to seasons and there will be others that are important.
  • Set “round” prices Rounding the prices this affects the final price
  • Always consider a minimum rate and a maximum rate, which may be different, It always affects the final price
  • Occupation of the area
  • Occupancy of competitive hotels
  • Average price in the area
  • Average Price for Competitive Hotels
  • PickUp a “short” booking page (analysis of the fluctuation in previous days)
  • Meteorology short-term study in days up to 10 days is the most reliable,
  • ...