Rate Hangover
Price the morning after: what an event-week rate hike costs in future rate.
The job
Shows revenue managers the cost to reputation of pricing, overbooking and fee decisions, in money and measured on their own hotel, so the next event is priced with guests' reaction in view.
The moment
A hotel raised its room rate 38% for race weekend, and the increase earned $1.2 million.
The bill for the morning after lists 212 reviews in four languages saying the price doubled, and $1.4 to $2.3 million of future room rate lost over twelve months. This was measured on this hotel across 6 events.
For next year, the revenue manager tries a 20% rise with breakfast included. The projected cost shrinks to $200,000 to $500,000, and the revenue manager locks it in.
After the race, the prediction is graded: complaints about value for money stayed within the expected range.
What it does
- Log a pricing decision
- Lock rule and expected reaction
- Send bill to revenue committee
- Edit an assumption
- Open verbatims
What you see
An itemised hangover bill under the event's takings, a pre-event dial, and a graded decision register
What it moves
The share of reviews about value for money after events with raised prices, compared with what was expected, and the estimated room-rate headroom lost in dollars per event.
Built for
- Finance
- Marketing, brand & comms
