Perfect pricing is not a myth or impossibility. All it needs is for hoteliers to rethink their approach to traditional revenue management
The one word that governs the hospitality industry’s lexicon is ‘price’. And perfect pricing is often considered to be an unfathomable concept, especially when it comes to revenue optimisation. Or is it?
According to Kabir Ahmed, complex director of revenue, for Sheraton Grand Bengaluru Whitefield and Convention Center as well as Aloft Bengaluru Cessna Business Park, pricing that is in line with a company’s strategy and with what a customer is ready to pay for the product is, simply put, perfect pricing. Both these components – the hotel’s strategy and customer expectation – are equally important.
If the hotel gives more importance to strategy and price than customer expectation, their demand will fall. Likewise, if they ignore their strategy and price lower than customer expectation, they might gain room nights, but lose potential revenue. The right mix of both defines perfect pricing. This is also where the concept of rate integrity comes into play.
This story is from the July 2017 edition of Hotelier India.
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This story is from the July 2017 edition of Hotelier India.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
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