N2Pricing™ RMS: Boost Revenue With Supercharged Analytics and Time-Saving Simplicity
This article was originally published at https://hoteltechreport.com/news/n2pricing on Nov 1st, 2021.
Selecting the right revenue management systems (RMS) for your properties is one of the most consequential decisions you will make as a revenue management leader. And today’s turbulent times have stretched revenue teams to breaking and forced them to confront aspects of their current systems — from forecasting to multi-property management, cost, and beyond— that must better serve their new needs.
In the wake of the pandemic, the business dynamics of 2021/2022 are very different from the hotel business we knew in 2019. Staffing shortages have forced hoteliers to wear many hats and be more connected cross-functionally. Historical data isn’t as indicative of the future as it used to be, leading to forecasting challenges. Even your compset may have changed.
Revenue Analytics, the firm that designed pricing systems for major global brands including Marriott, Hyatt, and IHG built N2Pricing™, an RMS available to hotels everywhere at an affordable price. Developing and refining the tool during the heart of the pandemic enabled the team to start from first principles and build an RMS designed to meet and overcome modern revenue challenges.
Revenue Analytics gave Hotel Tech Report an exclusive behind-the-scenes look at their new N2Pricing software where we drilled into the elements driving commercial success for today’s revenue management teams.
In this article, we’ll explain how N2Pricing is empowering forward-thinking revenue leaders to help their time-and-budget-strapped RM teams boost their current efficiency, revenue, and profit.
Intuitive Workflow Optimized for Multi-Property Revenue Managers
Revenue management teams have taken on more responsibility in the wake of the pandemic and multi-property revenue managers are replacing single property managers at a rapid clip.
Multi-property teams face different problems than single property revenue managers. Those who manage a portfolio have less time and local market knowledge to make smart decisions. N2Pricing has built a true multi-property RMS with an intuitive UI and workflow specifically designed to support multi-property managers.
At login, the software shows users the most worthwhile, actionable opportunities to focus on across the portfolio – whether at a large hotel or a smaller property—so they never miss out on big revenue levers. All recommendations are displayed in a simple user interface that is easy to understand. Opportunities and recommendations are sorted in the system by the size of expected profit yield to help time strapped revenue managers easily prioritize and execute.
N2Pricing supports an RM’s need to automate all but the most critical decisions.
Top Statistical Modeling Techniques to Deliver Hyper Accurate Forecasts
Many revenue management teams will tell you their demand forecast is broken. One obvious culprit is the pandemic and the havoc it has wreaked on historical data. But even before COVID, many were concerned about the accuracy of the forecasts. Unfortunately, this is not a small problem.
The demand forecast is the central capability of an RMS and even small changes in accuracy can lead to large swings in results.
N2Pricing uses a dynamic forecast with adjustable weighting that’s both robust and precise, so RMs can address the impact of COVID on their data. It also uses an ever-growing library of 1,500+ forecast models and a “pick-best” process to select the most accurate algorithm for each hotel and market segment, ensuring the height of accuracy at all times.
N2Pricing incorporates future demand signals to help RMs augment the intel provided by historical data. The timing and number of intraday updates is fully customizable with rapid responses to pacing. N2Pricing also automatically identifies special events and appropriately adjusts the forecast to account for them – automation that saves cluster RMs time.
Transparent Recommendations with High Acceptance Rates
One of the single biggest problems in any hotel tech product is user adoption (i.e. getting your team to actually use software and use it correctly). Many revenue teams find themselves overriding a large proportion of rate recommendations in their revenue management systems.
In some cases the rate recommendations either don’t make sense and in others they are too opaque/black box to give their users confidence in the math behind each programmatic decision
N2Pricing boasts an extremely high acceptance rate of 80%+ which the company attributes to accuracy and decision transparency.
Simple metrics like price sensitivity are exposed for each rate recommendation so that revenue managers and even general managers can quickly grasp the “why” behind the price recommendation and accept it.
Future Demand Signal Data (e.g. Hotel and Flight Searches) Built Right into N2Pricing Forecasts
With historical data on the fritz, more and more revenue leaders are looking beyond history and bookings to future signals to get a clearer picture of demand and move ahead of the booking curve. It’s critical in today’s world that RMSs can ingest forward-looking demand data to maximize utility.
N2Pricing ingests this data into their forecast so revenue managers can easily make decisions based on it. This data includes everything from hotel and flight search data to alternative accommodation availability (number of alternative accommodation listings you may be up against for different LOS and their price points) and dynamic compset (how your rates and availability measure up against a wider selection of competitors that change as markets shift).
Simple RMS Mobile App for GMs on the Go
Revenue management is complex and time consuming which makes involving time-trapped general managers in key decisions difficult. But these GMs are key revenue management decision makers. This complexity means that GMs either must sit through an 80-hour training to understand rate recommendations or (more often) defer training because they simply don’t have the time.
The result? GMs don’t use the system correctly or fight it with overrides, making the investment in the RMS wasted budget.
N2Pricing is built with a variety of features and benefits designed specifically to help revenue managers better serve the GMs they collaborate with on a daily basis. GMs will mostly be interested in reviewing the recommendations screen where they can quickly see the most important rate change recommendations default sorted by profit potential. This way GMs who are stretched thin can review the top three to five major decisions in just minutes each day.
The interface is simple for non-experts to understand – it includes just the features GMs need and none of the fluff (and data) they don’t. N2Pricing is also fully mobile for on-the-go management and provides intuitive rationale for every price recommendation to boost acceptance.
Is N2Pricing Right for Your Hotel?
Did you know that today 33% of hotel rooms in North America are priced using algorithms built by Revenue Analytics for clients like IHG, Marriott, and Hyatt? The revenue management technology behind N2Pricing has been in use for 15+ years by hospitality brands Marriott, Hyatt, IHG, and Starwood. Revenue Analytics has decades of experience building and integrating customer RMSs into large brands, meaning their internal processes make implementation a breeze.
N2Pricing’s UI was built to simplify and streamline without sacrificing power and intelligence. It surfaces all the features and data multi-property managers need to make efficient use of their time, while providing pathways for them to dive in and dig deeper when they need to tackle a business problem. Intuitive software makes revenue managers more productive day-to-day and also makes training fast and easy while empowering other key decision makers like GMs to quickly jump in and be able to leverage the tool in their decision making process too.
N2Pricing is a fresh, modern take on critical revenue management technology. N2Pricing is a high-quality RMS trusted by the best at a reasonable price point. If your team wants to boost efficiency, revenue, and profit—all at a reasonable cost– you should check out N2Pricing.
This content was created collaboratively by Revenue Analytics and Hotel Tech Report.