Booking curves are a hotelier’s best friend. They are the foundation of real revenue management and if you know how to interpret and use them to your advantage you’ll keep hitting and beating your revenue targets.
⏱️ They give us time to make adjustments for each night, week and month of the year. We realise we’re headed low on occupancy and we create a promotion or decrease our prices.
🚘 Booking curves are like Google Maps telling you how long it will take to get to the airport. If you’re running late you can always take an expensive Uber and still get there in time.
Our algorithms were built to find the best shape
We take pride in the simplicity of the Pace Revenue Manager but under the hood our engine is anything but simple.
The pricing engine looks at each future room night for each room type. For each these a set of booking curves is constructed each representing a different “path” to the final result.
Each of the different paths has a different RevPAR and occupancy and importantly, the optimal one is the one with the highest final revenue, not the highest occupancy.
Of course, it’s all more complicated than that.he algorithms take into account weekday, seasonality, lead time, real-time pace, price sensitivity and more. Read more here.
In short, the engine computes thousands of possible booking curves or paths for every property (every 6 hours, which is industry leading) and evaluates them to recommend the perfect price for optimal revenues.
Let’s look at an example - July 16, 2018
We launched a few exciting new features recently. One of them is the ability to much more easily than ever before review the booking curves for different nights and room types.
If you haven’t seen the solution you should really ask our team for a demo; it’s very, very intuitive and the static image below is just a glimpse of some of the great features we have added
Here’s the great thing about the booking curve visualisation below, for the first time you can now see not only the booking curve but also your pricing history and typical occupancy trends. In a single view you get every piece of data you need to inform your pricing decision.
In the case above early in the booking curve pace was falling behind so our pricing engine recommended a decrease in price. Later in the curve as bookings picked up in response to the earlier price reduction a new optimal path was discovered by our engine and a higher price recommended. Our system responds quickly to changing demand ensuring that you are always selling at the right price.