Today's Revenue Management thought:-

Predictive analysis is vital in contemporary hotel pricing strategies, enabling properties to adjust to market changes and enhance revenue. Efficiency is achieved through Revenue Management Systems processing vast datasets. This week, I delve into the challenges of achieving efficiency with manual models.

Manual methods require extensive time and resources for data collection, processing, and analysis, hindering scalability and accuracy.

Have a profitable week !

✌🏼

Today's Revenue Management thought:-

Predictive analysis is vital in contemporary hotel pricing strategies, enabling properties to adjust to market changes and enhance revenue. Efficiency is achieved through Revenue Management Systems processing vast datasets. This week, I delve into the challenges of achieving efficiency with manual models.

Conducting predictive analysis manually is inefficient and error-prone due to the lack of computational power and algorithmic sophistication.

Have a profitable week !

✌🏼

Today's Revenue Management thought:-

It’s Friday - time to contemplate.

Don't blame it all on 'price sensitivity' - it's like blaming bad hair days on gravity!

Have a profitable week.

✌🏼

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.

Have a profitable week !

✌🏼

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 !

✌🏼