Pricepoint’s primary objective is to identify the optimal sale price within the minimum and maximum prices set in the Rate Setup (and Events and Holidays) to maximize a property’s revenue. As a data-driven platform, Pricepoint continuously learns from past and incoming data to make precise, well-calibrated decisions without requiring micromanagement.
However, there are situations where managers may foresee changes that are not immediately obvious in the data, such as unexpected events. For these exceptional cases, Pricepoint offers the Demand Level functionality.
What Is Demand Level?
Demand Level is a scale from 1 to 5 that adjusts Pricepoint’s pricing recommendations to be more or less aggressive for specific dates. This provides managers a way to guide Pricepoint’s pricing when external factors influence demand.
How It Works
- Level: 3 (balanced pricing strategy).
- Levels 4 and 5 (more aggressive, ADR-oriented):
- Encourage higher prices, making Pricepoint more aggressive and ADR-oriented.
- Example: A nearby airport announces flight cancellations, and you expect increased demand.
- Levels 1 and 2 (more conservative, occupancy-oriented):
- Encourage lower prices, making Pricepoint more conservative and occupancy-oriented.
- Example: Low expected demand due to off-season travel or special promotions.
How to Adjust the Demand Level
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Access the Calendar:
- Navigate to the Calendar view in Pricepoint.
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Open the Daily Pop-Up:
- Click on a specific date to bring up the detailed settings for that day.
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Select the Demand Level:
- Choose a level from 1 to 5, depending on your desired adjustment.
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Save Changes:
- Click Save to apply the demand level for that date.
Key Points to Understand
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Optional Adjustment:
Demand Levels are an optional tool. They do not override Pricepoint’s AI but act as an input among many data points considered by the platform. -
When to Use It:
Demand Levels should be used for specific exceptions where human insight suggests Pricepoint might need additional guidance. For example:- A large event or cancellation impacting local demand.
- A unique situation that affects booking patterns unexpectedly.
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Avoid Overuse:
Reliance on Demand Levels for frequent or long-term adjustments is not recommended. Over-managing Pricepoint reduces its efficiency and may signal that the underlying framework (minimum and maximum prices) needs revision.
Best Practices
- Use Demand Levels sparingly and only for short-term, exceptional circumstances.
- If frequent adjustments are needed, contact Customer Success to review your framework and ensure it aligns with your property’s pricing goals.
- Trust Pricepoint’s AI for day-to-day pricing decisions, as it is designed to be adaptive and does not require daily inputs.
By using Demand Levels strategically and maintaining a well-defined pricing framework, you can optimize Pricepoint’s performance and ensure sustainable revenue growth.