PrivateDeal - innovative booking solution allows guests to propose a price for a stay
PrivateDeal SA is a Swiss company created in partnership with Ecole Hôtelière de Lausanne. The company uses a demand-driven approach to pricing.
How does it work?
PrivateDeal widget is set up directly on the hotel's website. The guest sees a slider that suggests bidding the price for the stay. The guest selects stay dates, and different room categories with published rates are displayed. Next is where the magic happens, as the software gives an option to suggest a price for the selected room type.
Two possible scenarios come after the price is entered. The system accepts the suggested price, and the guest proceeds with the booking. If the rate is not accepted, the smart algorithm offers a different price that is still lower than the published rate.
Why use it?
Increase direct bookings
The solution is only available on the hotel's website; hence guests have to book directly to take advantage of the bidding option. When guests book directly, hotels save on massive OTA commissions. PrivateDeal charges a commission, but it's considerably smaller than what OTAs charge.
Preserve rate parity
Published rates remain consistent on all booking channels, but the direct channel gets a competitive advantage.
Increase customer satisfaction
People always want a deal. The solution gives an option to suggest a price that the customer is willing to pay. It's a win-win situation for the hotel and guests. The hotel gets revenue, and the guest is satisfied with the room rate.
Improve revenue strategy
Revenue managers receive valuable insights about price levels that guests are willing to pay for different room products. Collected data can be used to improve the pricing strategy.
Save on labor costs
The system is fully automatic and does not require a trained reservation agent to negotiate with the guest.
Collect guests' data
We know how vital guest data is for the hotels. It allows building relationships with the guest and essential for revenue and marketing strategy. PrivateDeal prompts guests to fill out contact details before it shows if the suggested price is accepted. The hotel would receive contact information of the guests that booked the hotel and intended to make a reservation.
Take advantage of the day-use feature
Additional revenue stream for hotels. Guests get an option to book a room for a short period during the day and pay based on the number of hours spent at the hotel.
According to the Case Study, The Royal Savoy Hotel & Spa in Lausanne, Switzerland, used the PrivateDeal for a year and reported promising results:
Over the last year of PrivateDeal implementation, The Royal Savoy Hotel & Spa has increased direct web bookings by over 38%, and increased revenue from the website by over 31%.
Moreover, the hotel has collected seven times the qualified guest data, which has paved the way for memorable and highly personalized guest experiences. This, in turn, has helped to enhance guest satisfaction and drive repeat bookings.
Expereince the booking process by visitng West Sands Ukulhas hotel's website.