How You Can Influence the Pricing Strategy

Understand how you can influence the pricing strategy the engine is pursuing.

Maria Garbea avatar
Written by Maria Garbea
Updated over a week ago

Managing Your Pricing Strategy with FLYR for Hospitality

FLYR's AI uses an array of data points to maximize your revenue. It takes into account transactional-level booking data from your PMS, local event market data, demand data, competitor rates and more.

By analyzing these various data sets, our AI identifies relevant and impactful data points for your property to enhance your revenue. It sifts out data points that only add noise without improving performance. The outcome is a pricing strategy that continuously evolves and improves.

However, we understand that there are aspects you, as a Revenue Manager, are more familiar with, or brand guidelines you want the system to follow. These may require you to interact with the prices. With FLYR, this is not an issue! Gone are the days of struggling to manage forecast overrides to change prices or enforcing business rules on nights where you disagree with the pricing strategy the AI provides.

Influencing the Pricing Strategy

There are several ways how you can directly influence the pricing strategy determined by the AI. And just as easy as you can make changes to influence it, you can also revert back to the AI pricing strategy, disregarding previous, manual strategy adjustments. See below an overview of all the ways how you can influence the AI.

Direct Manual Price Changes

Yes, you read it right: Influencing the AI pricing strategy is as simple as making a manual price change to your preferred price point. Once done, moving forward from this point, the AI will consider this manual price change as an influence to its original pricing strategy.

The impact of this influence depends on various factors such as the magnitude of the manual price change from the original pricing strategy, the direction of the manual price change (increase or decrease) as well as the lead time within the booking window. Depending on this, the AI will either explore price points in the future more or less aggressively in response to demand or the lack thereof.

Example: With 30 days remaining in the booking window, the RM decides to manually increase the price by ~5%. Moving forward, the AI will therefore explore higher price points more aggressively without anchoring you on a high price point. This ensures that your directional input is considered in the short-term (by allowing you to set the desired price in the moment) whilst continuing to respond to market demand in the future by exploring higher & lower price points more aggressively.

Nights where you have made manual price changes to influence the AI will be highlighted directly on the Pricing page as well as on the Quick View. This also indicates how significant you have influenced the pricing strategy through color coding. In case you would like to revert your past influences on the AI pricing strategy, you can do so directly via the Quick View. The Quick View will also always provide you with insights on what the pricing strategy would revert to once those past influences are removed.

Lastly, you also have the flexibility to make bulk price changes or seamlessly revert to the original AI pricing strategy in one go. Just highlight a range of cells, similar to the way you would in an Excel spreadsheet, or use the convenient bulk update button. Within this interface, you can effortlessly increase or decrease your current prices, or opt to revert back to the original AI pricing strategy.

Price Freeze

Going a step further than influencing the pricing strategy with a manual price change, you can also freeze an entire night or specific inventories. This will stop our AI from automatically updating the price directly to the PMS. Instead, depending on the current pricing strategy applied by the AI, you will receive recommendations that you can accept manually for the nights frozen. Our automation will resume and set your price according to the defined strategy for this inventory and night only once you unfreeze it.

Minimum & Maximum Price Settings

To maintain control over the pricing strategy without altering it, we will always price within the minimum and maximum price settings. These constraints ensure that the pricing strategy adheres to specified limits. You can configure these price settings at a foundational level (default price settings), on a seasonal basis (seasonal price settings) for extended durations excluding an entire year, or for specific events (event price settings).

Of the three types, only event price settings directly impact the pricing strategy, irrespective of any user adjustments to the current pricing strategy. When an event price setting is established, the pricing strategy for that night becomes more closely linked to the pricing strategies of other nights assigned similar event price settings.

To prevent unintentionally restrictive price settings that may not align with changes in demand, our Price Alerts will notify you when any of your price settings come within 5% of the current price. This allows you to review and decide whether to remove a price setting, create a new event price setting or simply update the minimum and maximum boundaries. Additionally, you can observe the AI’s current pricing strategy and determine if you prefer to influence it differently rather than making direct edits to your price settings.

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