Until now, no one was able to know the price that guests would like to pay for staying in a hotel. This information is crucial for a hotel in order to optimise the yield management. Providing this information to all independent hoteliers is the bet made by PrivateDeal, as Swiss company founded by former hoteliers and in partnership with the Ecole Hôtelière de Lausanne.
This mission fits in perfectly with the hotel owners’ primary objective, which is to encourage their customers to book on their website ratherthan on the OTA platforms. It is a matter of lowering custom
er acquisition costs linked to the consequent commissions of the latter and also of recovering the complete customer file that the OTAs no longer leave to the hotelier.
What is a Direct Bidding Engine?
A direct bidding engine is a reservation system which allows hotel website visitors to give their own price for their room for a Night-use stay or a Day-use stay, via a simple widget on the hotel website.
Visitors get an instant response.
The hotelier sets the rules and price limits.
The benefits hotels can get by using a Direct Bidding Engine:
1- Attract more Direct bookings: by booking directly on the hotel website guests are sure they can have their ideal price.
2- Improve net results: instead of setting high fixed discounts, hotels set a discount limit on PrivateDeal and let the guests make an offer. Based on our experience, guests usually bid higher prices than the limits set.
3- Simplify the yield management: the dashboards give all info to the hotelier: prices, availabilities, discounts, sales and psychological rate, ie the price guests are ready to pay to come in the hotel.
4- Generate new revenues: hoteliers can sell their room twice a day, from one hour to several nights, directly on their website.
5- Develop the guest database: Unlike OTAs, PrivateDeal gives the access to all client details and offers, including the rejected offers.