It is Fundamentally Different

A system that doesn’t mimic the competition or rely on past data to predict the future.

Rate Quantum is a mathematical solution to a problem of hotels operating in an incredibly dynamic industry yet still using outdated, pre-internet era pricing strategies

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Competitor Pricing in hotels doesn't work since the late 1990s

The hotel industry is obsessed with competitor pricing. But before you match your prices to someone else's, ask yourself: "Do they have something that you don't" What makes their rate decisions 'right'? Or are you just following a follower?


The reality is that, in the age of the internet, your real competition is the hotels stealing clicks from you, not the one next door. Your competitors shift with every online search, so it's time to recognise that you're competing against the entire market.

Historical data is fundamentally flawed

Even before COVID-19, basing your pricing on the previous year's data was far from ideal. Markets evolve constantly - new hotels enter the scene, and thousands of apartments flood the market, increasing supply. Your hotel's visibility on OTAs shifts, and every search is influenced by market pricing, events, economic trends, currency fluctuations, and even politics.

Analysing historical data to identify patterns? Smart. 



Using it for budgeting? Necessary. 



But relying on it to set your pricing? That's a risky move.

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In an era of self-driving cars, bionic arms, and space exploration, surely technology can offer us more than just mediocre 'rate suggestions' that consume hours of our time?

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CORE PHILOSOPHY

So, how does Rate Quantum work?

It is built by revenue managers with 15+ years of experience who used just about every major Revenue Management System on the market and felt that none of them quite ‘made it’. Yes, some of them give you nice data sets and reports, others saved a bit of time with an occasional failure here and there. 



But at the end of the day, it’s all numbers and we felt that with AI and technological advancement, we could build something extraordinary.

Machine Learning

Machine learning is a subset of artificial intelligence that enables computers to learn from data and improve their performance on tasks without being explicitly programmed. It involves algorithms that identify patterns in data and use them to make predictions or decisions.

Probabilities

With enough data, the system accurately predicts booking probabilities for each day, room type, length of stay, and lead time. It also anticipates the property's final occupancy and expected cancellations, adjusting prices accordingly—often multiple times a day.

Revenue Experience

Crafted by professionals who have managed hundreds of hotels—ranging from major popular properties to those struggling for visibility in oversaturated markets—the creators of Rate Quantum have infused their extensive revenue management experience into this product.

No ‘Rate Suggestions’

It’s pointless to invest in an AI-powered revenue management system only to receive a list of 'rate suggestions' that still require human approval. If the system is merely as good as human judgment, what's the point?

Model that works

A similar methodology is used in airlines and banking systems. Though the exact approach differs, Rate Quantum operates on the same principle: determining how many rooms should be sold at any given time, without relying on competitor pricing.

Hands Off

Rate Quantum is a 'hands-off' system, designed to run autonomously after initial setup, eliminating the need for daily oversight. But it’s not just about saving time—just as NASA doesn’t use supercomputers to save time. It’s about the precision and sheer volume of hourly calculations that far exceed human capability.