In today's fast-paced world of online bookings, many hotel revenue managers are stuck in the past, heavily relying on their Smith Travel Research (STR) Competitive Set (CompSet) for making pricing decisions. While benchmarking with CompSets can provide a quick market overview, using them as the basis for pricing or marketing strategies can lead to very suboptimal outcomes.

1. Comp Sets: Useful Benchmark, Poor Pricing Guide

Comp Sets are often seen as a reliable way to gauge market performance, but they fall short when used to set future pricing. Factors influencing Comp Set data include:

• Remaining room inventory

• Market perception

• Year-to-date performance

• Subjective decisions of revenue managers

These variables make Comp Set data arbitrary and unreliable for future pricing. They reflect external conditions that don’t necessarily align with your hotel's specific circumstances.

2. The Complexity of Pricing

Hotel pricing is inherently complex. Demand fluctuates regularly, and competitors adjust their rates frequently. Translating vast amounts of data into actionable insights in real-time is impossible for humans alone. This is where traditional methods fall short.

3. The Solution: AI-Driven Automation

The only way to effectively manage this complexity is through AI-driven automation combined with intuitive reporting. Here’s how it benefits you:

• Real-Time Insights: AI processes vast amounts of data quickly, providing up-to-date pricing recommendations.

• Reduced Human Error: Automated systems eliminate the subjectivity and inconsistency of manual pricing.

• Actionable Reports: Clear and intuitive reporting ensures you understand and feel comfortable with the AI-driven results.

Our solution leverages AI to automate the pricing process, ensuring you’re always ahead of the curve and making the most informed decisions possible.

Why Primary Data is Your Best Bet

Instead of relying on Comp Sets, focus on your internal data. Your hotel’s primary data offers precise insights into:

• Actual demand patterns

• Booking trends

• Optimal pricing points for different conditions

Using your data ensures decisions are based on accurate, relevant information, tailored to your hotel's unique market position.

Clean vs. Noisy Data

Statistically, the closest data to the variable you want to measure will yield the cleanest results. For hotels, this means relying on internal demand data to gauge demand at various price points, leading to better decision-making and higher revenue optimization.

Proven Results

Hotels using primary data algorithms outperform those relying on secondary data. Studies indicate that primary data-driven strategies optimize revenue more effectively, especially when quickly adapting to market changes.

Conclusion

The hospitality industry has lagged in adopting advanced tools for revenue management. It’s time to update your approach. While Comp Sets are useful for benchmarking, they should not drive pricing decisions. By focusing on your primary data and embracing AI-driven automation, you can make more accurate and effective pricing decisions, maximizing your hotel's revenue.

Transform your revenue management strategy with our AI-driven solutions, and leave outdated methods behind. Embrace the future of hotel pricing with confidence.