Rate Differential
Rate differential, a common term in the hospitality sector, refers to the variance in pricing across different hotel rooms. This discrepancy arises due to various factors such as commissions, fees, and promotional agreements with online travel agencies (OTAs) or third-party booking platforms.
Hoteliers often face the challenge of managing rate differentials to ensure fair pricing and maximize revenue while maintaining competitiveness in the market. By employing sophisticated revenue management techniques and leveraging technology solutions, hotels can navigate rate differentials strategically, optimizing pricing strategies to drive profitability and enhance guest satisfaction.
Effective management of rate differentials allows hotels to strike a balance between revenue optimization and market competitiveness, ultimately fostering sustainable growth in the dynamic landscape of the hospitality industry.
Incorporating Rate Differential In Campaigns
In the ephanti application, adding rate differential is very easy. Let us see how to add rate differentials for different rooms of the hotels. Assuming that the rooms are Premiere, Deluxe, Presidential, Duplex, and Executive, you can set the rate differentials of your upsell rooms.
To set the rate differential using Ephanti's application,
- Go to "Master Data -> Rate Differential".
- You can see all the room categories that were added in the Products page.
- To add rate differential for your target upsell rooms, edit the rates in the required columns.
- After adding rate differentials, click on the "Save" button.
You have now successfully added rate differentials that will be incorporated seamlessly in your campaigns.