Today's Revenue Management thought:-

Would your pricing strategy pass this test ?

You know your pricing strategy is working…because your hotel is receiving reservations every day.

Is it ALSO true that your pricing strategy is costing you money?

Does your pricing strategy:

• Put your hotel at risk of not maximising it’s daily revenue potential

• Put your hotel at risk of reduced revenue every day

• Motivate clients to ask for rate reductions if other hotels charge less

• Attracting the wrong segments for your property

• Squeeze profit margins

• Require costly systems to track and administer revenue

I did a simple exercise with a client to test the alternative: “What if your pricing strategy had been value based pricing instead of being based on comp. set analysis ?”

How would that impact their actual revenue compared to forecast?

Test results - Major revenue increases and a better utilisation of capacity….. and an increased auxiliary spend

Have a profitable week.

✌🏼