Mews RMS price recommendations calculation FAQ

 

You review price recommendation calculations when you want to understand how Mews RMS generates pricing suggestions. As a revenue manager or property team member, you use this information to validate pricing decisions and align them with your pricing strategy. You typically review this when analyzing pricing changes or before accepting recommendations. You can view explanations for recommendations in Mews RMS, in the Pricing screen. Understanding how recommendations are calculated helps you make more confident pricing decisions. Each property has its own demand model, so calculations reflect your property's unique booking patterns.

In this article, you can learn about:

• How does Mews RMS calculate price recommendations?
• What data does Mews RMS use for price recommendations?
• How does demand forecasting work?
• How does price optimization work?
• How does revenue optimization work?
• How often do price recommendations update?
• Why hasn't my recommended price changed?
• How does Mews RMS interact with my non-RMS rates?
• What happens if I override a recommendation?
• How does competitor pricing affect recommendations?

 

How does Mews RMS calculate price recommendations?

Mews RMS calculates price recommendations using demand forecasting and price optimization.

• The system predicts future demand for each stay date and space category.
• The system tests different price levels to find the optimal price.
• The system applies your pricing rules, including price boundaries and hierarchy.

You can review the explanation for each recommendation in the pricing panel, where the system shows the reason and expected revenue impact.

For example, you see a higher recommended price because demand is strong for a specific date.

 

What data does Mews RMS use for price recommendations?

Mews RMS uses data from your property and the market.

• Reservations
• Inventory
• Current pricing
• Booking pace
• Cancellations and no-shows
• Group blocks and allocations
• Competitor pricing

This data helps the system understand booking patterns and demand.

For example, the system increases prices when booking pace is higher than usual.

 

How does demand forecasting work?

The system builds a demand forecast to estimate how many rooms you can sell.

• The forecast predicts remaining demand for future dates.
• The forecast includes expected cancellations and no-shows.
• The forecast considers group bookings and allocations.
• The forecast uses historical data and current booking trends.

This forecast forms the basis for price recommendations.

For example, the system predicts lower demand and recommends a lower price to increase occupancy.

 

How does price optimization work?

The system evaluates different price levels to determine the best rate.

• The system simulates demand at different price points.
• The system considers the relationship between space categories.
• The system respects minimum and maximum price boundaries.
• The system updates recommendations when new data becomes available.

You can review how prices move within boundaries in the pricing panel.

For example, the system lowers the price for one space category to increase demand for higher-value categories.

 

How does revenue optimization work?

The system focuses on maximizing revenue across your property.

• The system aims to optimize RevPAR.
• The system balances occupancy and price.
• The system distributes demand across space categories.

If your property includes additional revenue sources, the system can consider total revenue per stay.

For example, the system recommends a higher price even if it results in slightly lower occupancy to increase total revenue.

 

How often do price recommendations update?

Mews RMS updates price recommendations based on your configuration.

• Standard optimization:
  • Updates three times daily
  • Uses all recent data changes
• Real-time optimization:
  • Updates as soon as new data appears
  • Responds to booking changes and demand shifts

Why hasn't my recommended price changed?

Price recommendations update based on your optimization configuration. Under standard optimization, the system updates recommendations three times daily. Under real-time optimization, the system updates recommendations as new data becomes available.

If your recommendations appear unchanged, check your minimum and maximum price boundaries. Boundaries that are set close together restrict how much the price can move. Also check that your connection to Mews Operations is active.

For example, you notice the recommended price has not moved despite high booking pace. You check your price boundaries and find the maximum price is set too low for the system to respond to demand.

 

How does Mews RMS interact with my non-RMS rates?

Mews RMS manages prices only for rates you connect to the system. Rates you do not connect to Mews RMS are not affected by price recommendations or Autopilot.

You can view both RMS-managed rates and non-RMS rates together in the Pricing screen. This gives you a complete view of your rate structure in one place.

For example, you have a negotiated corporate rate that you manage manually. Mews RMS does not change this rate, but you can see it alongside your RMS-managed rates in the Pricing screen.

 

What happens if I override a recommendation?

Regardless of whether you use Autopilot, you may want to override the current prices for one or several dates. You have two options:

• Hierarchy override: Configure new minimum and maximum price boundaries. Price recommendations only generate within these boundaries. If Autopilot is enabled, recommendations are automatically accepted within that range. Mews recommends using hierarchy overrides, as you continue to benefit from dynamic pricing while still controlling the minimum and maximum price range.
• Fixed price override: Set a specific price point for a date and space category. This price remains in place until you actively choose to remove it by accepting a new price recommendation for that date and space category. Autopilot does not accept a recommendation on a space category that has a fixed price override.

 

How does competitor pricing affect recommendations?

Mews RMS uses competitor pricing as one of several inputs when generating recommendations. Competitor rates are pulled once daily from Booking.com or Expedia, depending on your configuration.

The system uses this data to understand your market position alongside your property's own demand signals. Competitor pricing alone does not determine recommendations.

For example, your competitors lower their prices for a future date. The system takes this into account alongside your own booking pace and occupancy forecast before generating a recommendation.

With a clear understanding of how Mews RMS calculates recommendations, you can make more informed pricing decisions and get the most from the system.