Today's Revenue Management thought:-

Some of our clients are faced with a high proportion of bargain hunters in that their client base is via OTA’s. This is not because these customers are bargain hunters by personality trait, but because OTA’s have educated their customers to become bargain hunters by offering more and more discounts.

How do you deal with such a situation as a hotelier ?

The problem with discounts is not only that they are poison for your margins, but that they work like drugs: to achieve the same effect, you need an ever higher dose.

So we need to organise rehab ?

Fortunately, there are many other ways to give the impression of advantageousness (that’s what bargain hunters actually are looking for) and make customers feel like they're getting a particularly smart deal (the “fix”).

For example, on your own website:

⏱ Limited-time offers
📦 Limited-quantity offers
📊 Different pricing intervals in your room assortment
🏷 Higher priced room types moderately adjusted compared to mid-priced room types, to make the latter appear less expensive,
etc.

All these measures protect margins and therefore make more sense than discounts.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

How can you set your prices right if you don't know your customer's willingness to pay.

It's all about the customer and customer perception.

And you cannot sell value without communicating value

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Value is in the mind of the buyer.

Value equals willingness to pay !

It's only logical - the more value your customers see in your product / service, the more they're willing to pay for it.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Labour costs & shortages

Increased food & beverage costs

Energy costs all increasing to unheard of levels.

Raising your prices significantly is best done when there is public awareness of your increased costs….. so if you’re gonna do it.. now’s the time.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Your pricing problem is NOT your price.

It’s perceived value !

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

When you're talking about pricing, think about value.

Who own’s the pricing decision ?

Who owns the value proposition ?

Pricing should have the concept of value underlying every decision.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

LVMH’s Bernard Arnault…..

“Luxury goods are the only area in which it is possible to make luxury profits.”

Nikolas HALL - “When the product’s price is right, you don’t have to be a great marketer to make a profit.”

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Inflation has a strange impact on pricing……

• Makes balloons bigger - The concept of pricing empty space.

• Chocolate bars smaller -Shrinkflation, the hidden Price Increase.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Pricing is so complex…..

You must understand:-

• your products

• your buyers

  • their rational thoughts

  • their irrational thoughts

• competitors

• market conditions

• investor / owner demands

and so much more…….

But at the end of the day it’s so worth it.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Small improvements in pricing strategies and implementation……

Will have a positive effect on your results.

€3 more for each room daily in a 100 room property with an annual occ. % of 60 = €65,000.00

Have a profitable week.

✌🏼