In today’s fast-paced hospitality industry, having a robust system that meets your revenue management needs isn’t just a luxury—it’s a necessity. What was once considered an innovative feature is now the standard. The ability to control and optimize pricing across multiple distribution channels has become a critical component of any successful revenue strategy.
The Shift in Revenue Management
A few years ago, simply maintaining synchronized prices across all distribution channels was sufficient to meet revenue goals. Back then, the landscape was less complex, with fewer Online Travel Agencies (OTAs) and distribution partners to manage. However, as the number of OTAs, partners, and distribution channels grew, so did the complexity of revenue management. The question naturally arose: “Is there a better way to manage this increasing complexity?”
Before the dominance of online booking systems, suppliers often provided specific prices to different OTAs, agencies, and resellers. This created a tangled web of prices, often difficult to control or edit efficiently. Managing this “pricing octopus” was a time-consuming, manual process that lacked flexibility and responsiveness.
The Need for Dynamic Pricing
As the industry evolved, it became clear that not all distribution channels and partners contributed equally to revenue. Some channels had the potential to drive higher revenue, while others required a different pricing approach to remain profitable. This shift highlighted the need for a more dynamic, data-driven approach to pricing.
In many booking systems, managing prices across multiple distribution channels is still a manual task, requiring significant time and effort. However, with advanced tools like the EZ Price Link Manager in EZ Booker Enterprise, suppliers can now link and control prices dynamically from a single, centralized system.
Streamlining the Pricing Process
With EZ Booker Enterprise, managing your pricing strategy becomes significantly more straightforward. By entering your rates into a Best Available Rate (BAR) plan, you set the foundation for dynamic pricing. From this base, the pricing octopus becomes active, allowing you to control prices across various distribution channels with just a few clicks.
If your reservation system supports it, you can easily connect your pricing to different distribution channels, either by percentage or nominal adjustments. This flexibility ensures that your sales strategy is dynamic and responsive to the varying commission structures of different channels.
For example, you might offer a 5% discount to certain partners, add €20 to prices on a specific OTA, or increase prices by 30% on your official website. All of these adjustments can be made effortlessly, without the need for tedious manual updates.
The Impact on Revenue
The benefits of such dynamic pricing control are significant. EZ Booker Enterprise users have reported more than a 30% increase in revenue from online sales within a year of implementing linked and adjusted pricing strategies. This improvement is not only due to better pricing alignment with sales conditions but also because rate adjustment times have been drastically reduced. Updating a single rate plan now automatically updates prices across more than 100 distribution channels simultaneously, ensuring your pricing strategy is always current and optimized.
Conclusion
In today’s competitive hospitality market, the ability to dynamically manage and optimize pricing across multiple distribution channels is crucial. As the industry continues to evolve, tools like EZ Price Link Manager in EZ Booker Enterprise provide suppliers with the flexibility and control needed to stay ahead. By streamlining the pricing process and making it more responsive to market conditions, these tools enable significant revenue growth and operational efficiency, setting a new standard for revenue management.
