Today's Revenue Management thought:-

Classical economic theory says that customers decide if a price is fair by evaluating based on their own interests. This week I’ll discuss why charging fair prices, not maximum prices, optimises profits over time.

Long-Term Relationships: Fair pricing fosters trust and loyalty, encouraging repeat business and positive word-of-mouth referrals, which are more sustainable than short-term profit maximisation strategies.

Have a profitable week !

✌🏼

Today's Revenue Management thought:-

It’s Friday - time to contemplate.

The right price includes elements of - Surprise, Doubt, Justification & Satisfaction

Have a profitable week !

✌🏼

Today's Revenue Management thought:-

This week we’ll discuss the 4 emotions behind price perception - Surprise, Doubt, Justification & Satisfaction

Your customers aren't tasked with determining pricing. An ideal price is one that meets acceptance but encounters some initial pushback. Predicting customer reactions to specific prices through direct inquiries is challenging because they themselves are uncertain about their responses.

Satisfaction: Overcoming initial resistance leads to satisfaction when customers recognize the worth of their purchase. They feel confident that they've made a sound investment, reinforcing their perception of the price.

Have a profitable week !

✌🏼

Today's Revenue Management thought:-

This week we’ll discuss the 4 emotions behind price perception - Surprise, Doubt, Justification & Satisfaction

Your customers aren't tasked with determining pricing. An ideal price is one that meets acceptance but encounters some initial pushback. Predicting customer reactions to specific prices through direct inquiries is challenging because they themselves are uncertain about their responses.

Justification: Customers seek validation for the price through factors like quality, brand reputation, or unique features. If they perceive the value to outweigh the cost, they're more likely to accept it.

Have a profitable week !

✌🏼

Today's Revenue Management thought:-

This week we’ll discuss the 4 emotions behind price perception - Surprise, Doubt, Justification & Satisfaction

Your customers aren't tasked with determining pricing. An ideal price is one that meets acceptance but encounters some initial pushback. Predicting customer reactions to specific prices through direct inquiries is challenging because they themselves are uncertain about their responses.

Doubt: Doubt creeps in as customers question whether the price aligns with the perceived value. They may wonder if the product justifies the cost or if they can find a better deal elsewhere.

Have a profitable week !

✌🏼

Today's Revenue Management thought:-

This week we’ll discuss the 4 emotions behind price perception - Surprise, Doubt, Justification & Satisfaction

Your customers aren't tasked with determining pricing. An ideal price is one that meets acceptance but encounters some initial pushback. Predicting customer reactions to specific prices through direct inquiries is challenging because they themselves are uncertain about their responses.

Surprise: Customers may initially feel surprised or caught off guard by a price, especially if it's higher than expected. This surprise can trigger resistance as they reassess the perceived value of the product or service.

Have a profitable week !

✌🏼

Today's Revenue Management thought:-

It’s Friday - time to contemplate.

What, Why, How and When……

Have a profitable week !

✌🏼

Today's Revenue Management thought:-

What, Why, How and When…….

This week, I'll delve into the nuances between revenue analysis, revenue intelligence, and revenue analytics, exploring their definitions, purposes, methodologies, and optimal timing for implementation. These terms often get muddled, but understanding their distinctions is key for hotels seeking to enhance their revenue strategies.

When !

Analysis - Required when new solutions are needed or existing processes must be optimised to achieve business objectives.

Intelligence - Essential for day-to-day operational decisions, tracking performance, and conducting historical analysis.

Analytics - Crucial for strategic planning, mitigating risks, and uncovering new opportunities.

Have a profitable week !

✌🏼

Today's Revenue Management thought:-

What, Why, How and When…….

This week, I'll delve into the nuances between revenue analysis, revenue intelligence, and revenue analytics, exploring their definitions, purposes, methodologies, and optimal timing for implementation. These terms often get muddled, but understanding their distinctions is key for hotels seeking to enhance their revenue strategies.

How !

Analysis - Entails collecting requirements, analysing processes, and implementing solutions to address business challenges.

Intelligence - Utilises data analysis, reporting, and dashboard creation to visualise performance metrics and trends.

Analytics - Applies statistical analysis, data modeling, and predictive analytics to anticipate future scenarios.

Have a profitable week !

✌🏼

Today's Revenue Management thought:-

What, Why, How and When…….

This week, I'll delve into the nuances between revenue analysis, revenue intelligence, and revenue analytics, exploring their definitions, purposes, methodologies, and optimal timing for implementation. These terms often get muddled, but understanding their distinctions is key for hotels seeking to enhance their revenue strategies.

Why !

Analysis - To close the divide between information technology and business operations, ensuring that solutions align with business requirements and provide value.

Intelligence - Providing actionable insights derived from available data to aid in making strategic and operational decisions.

Analytics - Offering foresight into upcoming trends, empowering proactive decision-making to drive growth and efficiency.

Have a profitable week !

✌🏼