Question 1

What is a What-If Pricing Simulator?

Accepted Answer

A What-If Pricing Simulator is a revenue management tool that lets you test proposed rate changes and instantly see the predicted impact on occupancy and revenue before you actually implement the change. RevEVOLVE's simulator uses a multi-factor price elasticity model to predict how a rate increase or decrease will affect demand, then shows you a side-by-side comparison of your Current Plan vs the Proposed Plan with projected RevPAR and revenue.

Question 2

How does the What-If Simulator predict occupancy impact?

Accepted Answer

The simulator calculates occupancy impact using a multi-factor elasticity model. First, it determines the rate change percentage. Then it calculates the Effective Price Elasticity of Demand (PED) by multiplying five factors: Base PED (DOW + Season), CompSet Factor, Demand Factor, Segment Mix Factor, and Lead Time Factor. Finally, it applies the elasticity to predict occupancy change. For example, if PED is -0.63 and you raise rates 12%, occupancy drops approximately 7.6%.

Question 3

What is a side-by-side plan comparison in the simulator?

Accepted Answer

The side-by-side plan comparison shows Current Plan (existing rates + forecasted occupancy) alongside Proposed Plan (new rates + predicted occupancy) with variance calculations. Metrics displayed include: Rate (BAR/ADR), Forecasted Occupancy, RevPAR, Room Revenue, Rooms Sold, and CompSet Index. This lets you see exactly how the proposed change affects each metric and whether the revenue impact is favorable or unfavorable.

Question 4

How does the simulator calculate revenue impact?

Accepted Answer

Revenue impact is calculated using the formula: Revenue_Impact = (Proposed_RevPAR - Current_RevPAR) × Total_Rooms. The system calculates Current RevPAR as Current_BAR × (Forecasted_Occ / 100) and Proposed RevPAR as Proposed_Rate × (Proposed_Occ / 100). If Proposed RevPAR exceeds Current RevPAR, the change is favorable; if lower, it's unfavorable. The simulator shows the exact dollar impact per day.

Question 5

What does the confidence score mean?

Accepted Answer

The confidence score indicates how reliable the prediction is, rated as High, Medium, or Low. It's calculated based on four dimensions: (1) Historical data depth—more data means higher confidence; (2) Model fit—how well past predictions matched actuals; (3) Market stability—volatile markets reduce confidence; (4) Lead time—close-in predictions are more reliable. High confidence means you can trust the prediction; Low confidence suggests monitoring results closely.

Question 6

Can I test multiple rate scenarios at once?

Accepted Answer

Yes, RevEVOLVE supports multi-scenario comparison. You can enter multiple proposed rates (e.g., $169 vs $189 vs $199) for the same date and see a comparison table showing predicted occupancy and revenue for each scenario. This helps you identify the optimal price point. You can also test scenarios across a date range (e.g., March 15-20) and see aggregate impact.

Question 7

Can I use natural language to run What-If scenarios?

Accepted Answer

Yes, through RM Copilot integration. You can ask questions like 'What happens if I raise the rate to $189 for next Friday?' or 'Compare $169 vs $189 vs $199 for next Wednesday' or 'What rate maximizes RevPAR for April 10?' Copilot parses your query, runs the prediction engine, and returns a conversational response with the impact analysis and recommendation.

Question 8

What is the Optimal Rate Finder?

Accepted Answer

The Optimal Rate Finder automatically calculates the rate that maximizes RevPAR for a given date. It runs the elasticity model across a range of possible rates and identifies the price point where the combination of rate and predicted occupancy yields the highest RevPAR. You can ask Copilot 'What rate maximizes RevPAR for April 10?' or use the dedicated button in the simulator interface.

Question 9

How does lead time affect the simulation?

Accepted Answer

Lead time (days to arrival) affects price elasticity. Rate changes made 30+ days out have full elasticity impact (Lead Time Factor = 1.0) because guests have time to react. As the date approaches, elasticity diminishes: 15-30 days = 0.85, 7-14 days = 0.65, 3-6 days = 0.45, 0-2 days = 0.25. This means last-minute rate changes have less impact on occupancy because remaining demand is more urgent/inelastic.

Question 10

What is a favorable vs unfavorable verdict?

Accepted Answer

The simulator provides a clear verdict after each simulation. Favorable (green) means the rate change increases total revenue—the ADR gain outweighs any occupancy loss. Unfavorable (red) means the rate change decreases total revenue—the occupancy loss exceeds the ADR gain. Marginal (yellow) means the impact is within ±1% and you should consider other factors like competitive positioning and brand perception.

What-If Pricing Simulator: Test Before You Commit

How the Simulator Works

Enter Rate

Calculate Change

Compute Elasticity

Predict Occupancy

Project Revenue

Show Verdict

Side-by-Side Plan Comparison

Natural Language What-If Queries

The Power of Prediction

See the Future

Instant Answers

Data-Backed Decisions

Clear Verdicts

Ready to Test Your Pricing Decisions?