Hospitality Technology

The Lauderdale Picks Pricepoint Over a Free Pricing Alternative

Hospitality Net reports The Lauderdale chose Pricepoint's pricing platform despite a free alternative being available, underscoring how operators weigh vendor support over license cost.

Their pricing tool was free to use. The Lauderdale chose Pricepoint anyway. - Hospitality Net
Their pricing tool was free to use. The Lauderdale chose Pricepoint anyway. - Hospitality Net — AI-generated

Hospitality Net reports that The Lauderdale chose Pricepoint's pricing platform, even though a free pricing tool was available to the operator. The selection illustrates how hospitality buyers evaluate front-of-house and back-office software: license cost is one input, but analytics depth, vendor accountability and integration scope often weigh more heavily in the final decision. The operator pays the subscription; the free alternative, by definition, does not.

What does the choice actually signal?

Hospitality operators increasingly separate sticker cost from total cost of ownership. Free tools typically automate a narrow workflow — a single menu-price update or a surge-window recommendation — but rarely bundle the analytics, point-of-sale connectivity and dedicated support that commercial vendors package together. Multi-unit operators often judge those omissions as more expensive than the subscription itself, once labor hours and lost yield are tallied. The Lauderdale's decision is a small but instructive case study in that calculation.

How does Pricepoint fit the procurement math?

Pricepoint operates in the revenue-management software category, alongside other pricing and menu-engineering vendors serving hotels and restaurants. Tools in this segment pitch operators on a data-driven view of check management — when to nudge prices up, where to engineer margin out of menu mix, and how demand shifts across dayparts. Operators evaluating such platforms typically benchmark the subscription against several variables:

  • The cost of a part-time analyst performing manual price updates
  • Margin recovery from a 1-2% check-average lift the tool can identify
  • Labor hours absorbed during onboarding and POS integration
  • Uptime and support guarantees during peak service windows
  • Revenue lost when pricing lags demand during a peak shift

For a multi-unit operator, even a single percentage point of check-average improvement can pay for a vendor subscription many times over, which is why value conversations usually start with check economics rather than feature lists.

Why pay when a free option exists?

The Lauderdale is not the first operator to pay for what a free tool can do. Chains across casual dining, quick service and limited-service segments have made similar trade-offs, frequently concluding that vendor accountability — a named account contact, a service-level agreement, an integration roadmap — justifies recurring fees. Free tools tend to leave support to community forums or volunteer maintainers, a risk operators weigh against subscription dollars. When a pricing decision affects every check that leaves the kitchen, that risk premium grows.

What should procurement teams take from the decision?

Operators evaluating pricing or revenue-management software should ask vendors to document five items before signing:

  • Check-average lift in comparable accounts, with property size and segment context
  • Integration scope with the operator's existing POS and back-office stack
  • Service-level commitments, response times and uptime guarantees
  • Total onboarding cost, including operator labor hours absorbed during rollout
  • Contract flexibility, including pilot terms and exit clauses

Looking ahead

The Lauderdale's choice points to where hospitality technology competition is heading. Vendors competing on license price alone will find it harder to displace free alternatives; vendors demonstrating measurable revenue impact and reliable support will keep subscription economics intact. Expect more decisions like this one as operators continue to sort tools by outcome rather than feature checklist, and as free pricing options proliferate across open-source and freemium channels.

revenue-managementpricing-softwarevendor-selectionprocurementhospitality-technology

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Marcus Bennett

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Market editor covering media and advertising at The Pass Brief.

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