What is a rate shopper?
Updated
A rate shopper is a tool that shows you the prices your competitors are charging for the same nights, so you can compare your own rates with the market.
Why does it matter to a small hotel?
Checking rivals by hand means opening several sites, picking dates, and doing it all again tomorrow. A rate shopper does that checking for you and lays the results side by side. For a small hotel the value is context. A price of £110 means nothing until you know that similar hotels nearby are at £95 or £135. It is also an early warning: when rivals start to sell out or to raise prices for a date, you see it before your own bookings show the change. Choose competitors who are genuinely alike in size, standard and location, since a wrong comparison set gives misleading advice. Prices alone are not the whole story. Availability and the date they were seen matter too.
A worked example
The 24-room hotel charges £110 on an autumn weekday. A rate shopper shows five similar hotels within three miles: they range from £98 to £125, with a median of £112. The hotel is slightly under the middle, so it could try £115. If three of the five show no rooms for a particular Saturday, that is a sign to raise that night’s rate. To see your own comparison set side by side, try RatePulse free.
Related terms
Questions people ask
Who counts as a competitor for a rate shopper?
Hotels a guest would realistically choose instead of you: similar size, standard, price level and distance. Five to ten is usually plenty.
Should I match my rivals' prices?
Not automatically. Use them as context. Your location, reviews and rooms may justify a higher or lower rate.
Is a rate shopper the same as a revenue management system?
No. A rate shopper reports what the market charges. A revenue management system goes further and recommends what you should charge.