Are you someone from the hotel supply industry who can’t make sense of how your competitors always tend to adjust their prices so smoothly just when your potential customers are trying to book the best deals or orders? Thinking how some of your competitors enjoy maximum profits year-round whether the hotels are fully booked or waiting for guests? AI-driven price intelligence is the answer!
It tracks market trends, analyzes data, and helps make price adjustments without you having to intervene. PwC research thus shows that more than 70% of hospitality businesses are working to integrate AI-powered pricing solutions in their business. If you also want to become part of the movement and reap benefits like better profitability, larger market share, and more, read along to understand all about AI-driven price intelligence.
Understanding AI-Driven Price Intelligence
AI-driven price intelligence is simply what the name tells you; it’s an AI-empowered strategy for pricing your offerings in the hotel supplier industry. This means you will be using the power of AI to extract data from different sources affecting your market and analyze the resulting large data sets to set optimal or competitive prices.
The AI price intelligence tools you’ll implement for your hotel supplier business will turn to sophisticated machine learning and AI algorithms that will process large amounts of different kinds of data, such as your competitors’ pricing, historical sales data, and market trends. All of this will help you formulate a strong dynamic pricing strategy to be profitable while selling your offerings at different price points.
This is a must-have for you in the hotel industry, where new seasons bring in new shifts and trends in the market and sales volume, as it will help you adjust your quotes in real-time and respond according to the demand of your supplies. For example, promising AI-driven pricing tools like PriceIntelGuru can detect sudden changes in your competitor's pricing or emerging trends and help you adjust your pricing to gain a larger market share. AI price intelligence won’t just help you react to the market but anticipate changes and handle pricing matters proactively.
Why Hotel Pricing Intelligence Matters
Research shows that businesses can increase customer satisfaction by 17% and boost revenue growth using smart price intelligence solutions. The case of Marriott Group exemplifies this, as the company was able to yield better profits by using AI solutions to optimize its prices.
Understanding the importance of hotel pricing intelligence is thus essential for hoteliers like you who want to thrive in a competitive market. As the hospitality industry becomes increasingly dynamic, the ability to adapt pricing strategies based on real-time data is no longer optional; it is a necessity for your success. Wondering what is the need for pricing intelligence in the hotel suppliers industry? Here’s why it matters:
Understanding Customer Behavior
If you want to set the right price for a diverse range of your clients, for example, some may be price-sensitive while others may seek value more rather than budget deals, understanding their needs is a must. AI Price intelligence tools can help you with that as these tools can explore the booking patterns and trends in your market and analyze historical data. This will give you a thorough idea about the peak times in your niche and customer buying patterns so you can adjust your pricing promptly.
Strategic Forecasting for Optimizing Revenue
Predicting trends is not easy, especially when large data sets are involved in an industry like yours, yet accurate forecasting is important to see rising opportunities and seize them timely. For example, suppose you’re new to the market. In that case, AI can help you understand around what times or how often hotel businesses mostly order supplies for upcoming seasons like holidays or summers so you can cash in on these opportunities and gain maximum profits.
On the other hand, you can lower your prices or offer bundle offers during low-demand times so your sales volume doesn’t take a blow because of the off-peak times, and you maintain a stable profit margin throughout the year.
Tracking Competitor Pricing
Suppose you want to stay profitable and maintain or expand your market share in the hotel supplier industry. In that case, you’ll need to keep an eye on your competitors' pricing strategies so you can increase or decrease your prices as they do. AI price intelligence relies heavily on competitor price monitoring to adjust your prices in real-time, which is vital for your success in the industry and keeps you competitive without harming your profit margins.
Article Source: https://www.priceintelguru.com/article/ai-driven-price-intelligence-hotel-supplier-profits
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