Don’t forget that the price is a Selling TOOL. Price lets us segment and attract different target markets with the objective of maximizing Revenue. But we have to be careful our revenue management strategies based on price sensitivity don’t turn against us.
Xotels is looking for hotels, which want to improve RevPAR, reduce travel agency commission costs, increase direct sales, increase GOPPAR and generate more profit through effective hotel management. Does your hotel fit the profile?
Now that we have our demand calendar, how do we start with pricing? We have found it effective, before setting a base price for each day, to develop a pricing grid. Such a hotel pricing matrix is an essential revenue management tool.
On the Brink of Revolution !
Sunday afternoon, a few clouds are setting over the terrace, a perfect time to put down on paper some thoughts on ‘dynamic pricing’ in hotels. Following the news lately I have come to think that we are on the brink of the dynamic pricing revolution in hotel revenue management ...
Over the last 4 years we have trained thousands of hoteliers around the world in revenue management and distribution. All have made the same remarks; the travel industry is too price driven, the competition is driving down the price of the market. My question; what are you doing about it?