What is Minimum Booking Value (MBV)?
Minimum Booking Value (MBV) allows businesses to set a minimum reservation value for a specific time frame. Unlike the traditional minimum length of stay, MBV focuses on the overall value of the reservation. This is especially crucial for businesses where the number of pets in a room can significantly influence the booking's value.
Why Use MBV?
Peak Demand Periods: During high-demand times like summer weekends or holidays, MBV ensures that you're maximizing revenue from each booking.
Flexibility: MBV provides flexibility. For instance, if a family with two dogs (costing $80/night) wants a 3-night stay, their total value ($240) would meet an MBV of $200, even if it's less than the expected 4-night stay.
Automatic Blackouts: MBV can automatically make lower-priced offers unavailable if they don't meet the set MBV criteria.
Effective Use of MBV:
Historical Data: Analyze past booking trends to determine optimal MBV amounts for different periods.
Monitor & Adjust: Regularly review the effectiveness of your MBV settings and adjust as needed to reflect changing demand patterns.
Combine with Other Rules: Use MBV in conjunction with other Revenue Optimization Rules for a comprehensive pricing strategy.