Achieving consistent rates with all of your partners may be hard, but understanding why disparity is occurring can help improve the bottom line. In many cases, we find that disparities are in fact caused by internal technical issues. It may simply be because there is a delay in how your different systems PMS, RMS, CRS, and Channel Manager are interacting. Alternatively, it could be a delay caused by the fact that there are multiple caches in the interface between your CRS and the channel. Due to tech issues such as these, prices may be out of sync for a few minutes to several hours and this is what we refer to as Price Latency.
Often, due to dynamic pricing, these caching issues rectify themselves several hours later. However, during this period you may have missed out on valuable direct revenue due to out of parity rates. For this reason, detecting and classifying the cause of the issue is paramount.
Once you have identified price latency issues here are a few different actions you can consider:
If you are seeing similar levels of latency cases across all your partners, then you know it’s across the board, so most likely something to raise with your IT team. By using the metrics provided you can build a case to demonstrate the magnitude of the issue, especially if the number of cases appears to be escalating over time.
If a particular partner has significantly more latency issues compared to others, then you can take the evidence available, escalate it and ask them to investigate the issue and bring it back in control.
Finally, it is worth looking into how you are connecting with your partners, as this may indicate where the issues lie. For example, if you connect with one partner directly from the CRS, while others go through your Channel Manager and price latency is occurring with one and not the other, it makes sense that the latency issue lies with your Channel Manager or vice versa.
We provide our hotels with price latency intelligence showing cases on a daily or weekly basis. For example, in image 1, you can see we have found 150 cases of price latency from the day of the scan. By looking at the breakdown of these shops by partners, we can see that in image 2 latency issues are happening with all partners except Hotels.com. With this evidence, it is possible to explore further to see if the issue may be specific to your connection setup with your partners, or if the issue lies on their side, which would be something to highlight directly with them.
By monitoring this on a daily basis and overcoming Price Latency issues, you encourage guests to book direct and increase your net RevPAR. For more information on this feature please get in contact with us via firstname.lastname@example.org