No Oasis here, Chester hospitality tech promises of 'good' dynamic pricing - Prolific North

A hospitality technology company based in Chester has developed an innovative room reservation system that optimizes hotel occupancy through a debated pricing strategy, which they say also offers guests more options.

Hop Software's cutting-edge system is set to make its debut this Wednesday (November 27). It is expected to appeal to hospitality companies aiming to increase room sales in order to balance out rising expenses, like increased National Insurance contributions.

Dynamic pricing made headlines in August when fans of Oasis noticed that tickets for their reunion tour shot up from £150 to more than £350 while they were waiting in line online. This prompted an investigation by the competition regulator.

Nonetheless, dynamic pricing has been a well-established strategy in the hospitality industry for a long time. It involves adjusting room rates during off-peak or busy seasons to match varying customer demand.

The latest booking system from Hop, based in Cheshire, smartly monitors demand and allows hotels to adjust their prices instantly. This includes the ability to provide discounts without needing to depend on external booking platforms.

It also monitors guest behavior, providing hotel managers with valuable information and data that can assist in promoting room upgrades and additional services customized to meet each guest's specific preferences and requirements.

Hop has referred to the booking engine as the most significant advancement since the company was founded in 2017. It represents two years of effort in development and design, which was informed by in-depth feedback sessions with clients from around the world.

The Hop team is confident that this technology will enhance hotel earnings in the UK and improve the overall experience for guests. This is a different situation compared to the unhappy Oasis fans, which resulted in the band abandoning their dynamic pricing strategy for concerts during their reunion tour in the US.

According to Sharon Smith, the COO of Hop, "Dynamic pricing has been a common practice in the hospitality industry for quite a long time. We're not talking about extreme price hikes like you might see with Oasis, where costs suddenly soar by hundreds of pounds. Instead, in hospitality, occupancy rates change often. Prices can rise or fall based on factors like demand and the season."

Hospitality businesses can benefit from the new booking engine, which provides the ability to boost direct bookings, enhance occupancy rates, and increase revenue by promoting tailored additional services. Additionally, it significantly reduces the time spent on administrative tasks.

Smith assured guests that they would enjoy an easy and straightforward experience that feels more personal and only takes a few clicks to book, no matter what device they use.

She mentioned, "The market is changing rapidly at the moment. We aimed to create something top-notch. While our competitors have certain features, we wanted to cover everything. This is the largest development we've undertaken since the company was founded."

Personalized requests for multi-room reservations can now be managed through the new Booking Engine. This means that guests traveling in groups no longer need to call the front desk to ask for pet-friendly accommodations, bathtubs, or special meal options. Additionally, virtual assistants can take care of these requests, allowing hotel staff to concentrate more on enhancing the overall guest experience.

"Right now, you would need to call the hotel to inquire about various rates, packages, or services," Smith continued. "But this new system lets you customize your booking by arranging things like baths, meals, or other services for multiple rooms, which is extremely beneficial for both the hotel and its guests."

Current clients will transition to the new booking system within a few days, with additional updates planned for January 2025.

Hop Software was founded by hotel owners Richard Drummond and Jon Erasmus, along with director Ronald Tweedie, who wanted to address the issues with expensive and outdated hospitality management systems. In the seven years since its inception, their acclaimed property management software has gained more than 250 clients across four continents. The company is now exploring the possibility of establishing a new office in South Africa.