Rate Optimization

We help hotels significantly increase and sustain profitability by building capabilities for superior rate and NOI management.

Small changes in average rate can translate into huge changes in operating profit—to the benefit of a hotels when average rate goes up, and to its detriment when rate price goes down. We believe that sustained above-market growth comes when granular rate analytics deliver credible insights with easy-to-use tools to the front lines. While we work with our clients to develop effective rate strategies and unlock rate opportunities, the majority of our focus is spent on building the right set of capabilities and direction conviction to implement and sustain the gains. We take a “strategy before structure” approach by identifying what needs to be done and then working with the client to build out the tools, and systems to do it.

We help hotels turn rates into a sustainable profit engine by:

• Discovering the real value of each day for each market segment in order to set the best rates. We develop tools that process big data to uncover pricing opportunities at the most granular levels to identify patterns and size opportunities. That includes identifying transaction level insights on sources of leakage to help clients make rapid changes that “ring the cash register” quickly.

• Designing market strategies based on a deep understanding of how rate is connected to the business’ goals and what competitive pressures are affecting the market.

• Delivering rates to the hotel through an infrastructure that incorporates processes, organizations, systems and tools, and performance-management approaches that are relevant to the business. The greatest tool in the world won’t help a hotel that doesn’t have the marketing team and processes to act on what the tool provides. For this reason, we take special care to connect all the elements of the rate function with the hotel and the marketing people on the front lines.