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The Shire - Revenue Management Strategy
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The Shire - Revenue Management Strategy

Our Revenue Management System

Principles


Pricing
Life House uses a dynamic pricing algorithm, drawing from game theory concepts and driven by a followers strategy based on selected competitors, to update rates across all channels. With the goal of RevPAR maximization, the competitor-focused pricing strategy will adjust ADR higher during high demand periods and will adjust occupancy during low demand periods.
Generally daily room rates are dependent on the following key components, with rate impact in parentheses:
Competitors’ room rates (positive or negative)
Higher competitors’ rates will drive higher rates at White House Inn. The objective is to monitor competitors’ rates closely, and have an ability to undercut them when we need occupancy or drive higher rates when there is plenty of inventory available.
Own inventory left (negative)
More inventory available will lead to lower rates.
Lead time (positive)
Typically the further away from arrival, the higher the room rates are as captured by the booking curve distribution for every single day of the week. We have observed that weekend bookings generally happen further in advance of weekday bookings. Our booking curve is capturing the distribution of the guests’ booking lead time.
Market demand (positive)
Daily RevPAR targets are based on seasonality, day of the week, events and previous years’ performance on the same comparable day of the year.
Marketing

Distribution

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