Why rate coding is important at your hotel?
March 15, 2020|Hotel Marketing
Depending on your revenue management system or brand, there are a variety of rate type codes available to you, including some standard industry codes like Rack Rate, Best Available Rate, Group Rate, and Regular Discount Rate codes.
Rate coding is of great importance in the statistical analysis of your reservations database. It tells you what type of guests book your property, what sources or accounts they come from, when they visit, and so forth.
When your hotel is behind in sales, you want to be able to identify where you succeed and where you need improvement. If you do not have the right rate codes, or you have all your reservations under one rate code, there is absolutely no way for you to determine what segments or sources you are gaining from or missing out on.
To avoid this problem, you must train your front office in properly coding every reservation you have in the system. That way, it will be easy for you to trace the missing account or revenue source that is contributing to your low occupancy, and go after it. For instance, you can make some adjustments in the agreement with a third party company that used to produce ridiculous amounts of revenue for your hotel, or do the necessary follow-ups to close a deal.
Now is the best time to check again with your front office if they are coding every reservation correctly. Their role is crucial if you want to keep your occupancy up even during the slow times and beat the competition.
#HotelSales #BeatTheCompetition #Bezla