What do hotels use to determine the optimal times for promotional pricing?

Hotels utilize forecasting and historical data analysis to determine optimal times for promotional pricing because these methods enable them to identify patterns and trends in occupancy rates, guest behavior, and market demand. By analyzing historical data, hotels can gain insights into when certain periods experience higher or lower demand, allowing them to adjust pricing strategies accordingly. Forecasting techniques further enhance this process by predicting future occupancy based on past performance as well as current market conditions.

This data-driven approach allows hotels to optimize revenue management, ensuring that prices are aligned with guest willingness to pay at different times. Unlike industry standards, which may not reflect the specific circumstances of a hotel, or guest feedback alone, which can be subjective, the combination of forecasting and historical data provides a more objective and accurate basis for setting promotional pricing. Staff recommendations, while valuable, may not always be supported by concrete data and can vary based on personal experience or intuition rather than a systematic analysis of trends.