This week we’re looking at pricing strategies and how the best revenue managers maximise room revenue.
These articles cover supply and demand, how competition affects rates and how psychological pricing tricks can increase conversion. Check them out!
Yield management can be defined as selling a product or service to the right customer, at the right time, and at the right price. Yield management strategies can be applied to virtually any type of business even a small independent hotel.
The right pricing strategy can help you increase your market share against other properties in the area (or prevent new competitors from entering the market), while the wrong pricing strategy can do just the opposite.
Have new hotel openings in your area affected your room supply? Are you seeing a wash down on group business coming into the summer months? Whatever your situation, every hotel should understand how supply and demand impacts on their rate strategy.
Whether you are managing basic transient rates and controlling for complex length of stay interactions, negotiating contracts, or making overbooking decisions, understanding inventory value and setting appropriate availability controls in conjunction with optimizing rates adds significant value to these decisions.
In this article they explore both traditional market segments, newer, more dynamic models, and how to develop the best pricing strategies.