Today's Revenue Management thought:-

Don't Use 'Price Sensitivity' as an Excuse ! Here’s why…..

Economic considerations, value perception, and the rise of alternative accommodations further complicate the dynamics of price sensitivity in the hospitality industry.

Have a profitable week !

✌🏼

Today's Revenue Management thought:-

Don't Use 'Price Sensitivity' as an Excuse ! Here’s why…..

Hotel stays are complementary goods, influenced by factors beyond just room rates, challenging the traditional understanding of price sensitivity.

Have a profitable week !

✌🏼

Today's Revenue Management thought:-

Don't Use 'Price Sensitivity' as an Excuse ! Here’s why…..

The focus solely on price adjustments neglects the broader context of travel decisions including total trip costs and destination competition.

Have a profitable week !

✌🏼

Today's Revenue Management thought:-

Don't Use 'Price Sensitivity' as an Excuse ! Here’s why…..

Price sensitivity in hotels is often oversimplified and can be misleading, leading to ineffective strategies.

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✌🏼

Today's Revenue Management thought:-

It’s Friday - time to contemplate.

Dynamic pricing, the hospitality world's quick-change artist, switches shades faster than a chameleon on a disco floor!

Bonus info - Confusopoly - a group of companies with similar products who intentionally confuse customers instead of competing on price. The term was invented by Scott Adams in his comic strip Dilbert.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

This week I’ll look into the do’es & don’ts of dynamic pricing to avoid creating a pricing strategy where consumers view your pricing as a scam.

Balance your algorithms with human judgment; avoid over-reliance on automation. Forgetting the human element in dynamic pricing is a guarantee for failure.

Refrain from using dynamic pricing in situations perceived as insensitive or profiteering. While price increases due to increased demand are coherent, customers may perceive them as pure profiteering, especially in delicate situations.

Have a profitable week !

✌🏼

Today's Revenue Management thought:-

This week I’ll look into the do’es & don’ts of dynamic pricing to avoid creating a pricing strategy where consumers view your pricing as a scam.

Avoid dynamic pricing if it conflicts with your overall strategy. Just because your competitors implement dynamic pricing doesn’t mean you have to follow suit.

Skip dynamic pricing in non-seasonal, non-urgent scenarios with full comparability. Dynamic pricing can shift consumer demand from when they wanted to purchase an item to when they expect a lower price.

Have a profitable week !

✌🏼

Today's Revenue Management thought:-

This week I’ll look into the do’es & don’ts of dynamic pricing to avoid creating a pricing strategy where consumers view your pricing as a scam.

Utilise dynamic pricing when costs are elastic and a fluid pricing strategy is feasible and cost-efficient.

Implement dynamic pricing for seasonal demand spikes. A dynamic pricing model can allow for effective monetisation of seasonal demand and urgency when price sensitivity drops.

Have a profitable week !

✌🏼

Today's Revenue Management thought:-

This week I’ll look into the do’es & don’ts of dynamic pricing to avoid creating a pricing strategy where consumers view your pricing as a scam.

Dynamic pricing suits perishable inventory and varied customer willingness to pay, optimising revenue in capacity-constrained situations.

Employ dynamic pricing to balance supply-demand fluctuations effectively.

Have a profitable week !

✌🏼

Today's Revenue Management thought:-

It’s Friday - time to contemplate.

Navigating the fine line between revenue optimisation and guest satisfaction is tricky but essential.

Overbooking is like juggling flaming torches - thrilling if you pull it off, but watch out for the burns!

Have a profitable week.

✌🏼