Hotel Revenue Glossary · Pricing

Rate Shopping

The process of systematically checking competitor hotel rates across multiple channels and dates. Rate shopping tools automate this by scanning OTAs and brand websites to capture competitor pricing, which feeds competitive positioning decisions.

Why it matters: Knowing where competitors are priced on any given date is essential for setting your own rates. Rate shopping data combined with your pace and pickup information creates the full picture needed for dynamic pricing decisions.

Worked example: Thursday's shop for a Saturday four weeks out: you A$219, Comp A A$239, Comp B A$249, Comp C A$205, Comp D sold out. The three-comp average excluding the sold-out property is A$231, so you sit A$12 below it. But Comp C's A$205 is a non-refundable advance-purchase rate and yours is flexible. Like for like you are A$20 under Comp A and A$30 under Comp B, and above the only discounted rate in the set.

Common mistake: Averaging the comp set and reading the gap as your position. A sold-out competitor drops out of the average and pulls it down, so the day you should be raising rate is the day the number tells you that you are expensive. Read the shop hotel by hotel, and treat a sold-out comp as a demand signal.

All glossary terms Comp Set (Competitive Set) BAR (Best Available Rate) Rate Parity