Setting the right price for your hotel rooms is crucial for driving revenue and maximizing profitability. However, there are many factors that can influence your hotel’s pricing strategies.
The HSMAI Revenue Advisory Board recently met to discuss the psychology of pricing in today’s environment. Read on for a snapshot of key concepts in behavioral economics and how it affects pricing strategies.
As popular travel destinations in Europe emerge from months of uncertainty and cancellations, trends in the travel industry are beginning to emerge. In this post we use OTA Insight’s Market Insight tool to look into demand trends and the Rate Insight tool to examine the evolution of the rate strategies of destinations across Europe, to see how hoteliers are capturing increasing demand in 2022.
One of the bright spots for the hotel industry amid the pandemic was the ability to hold - if not drive - average daily rate, particularly in leisure-led, drive-to markets. It is something that evaded hoteliers during prior calamities, including 9/11 and the Global Financial Crisis of 2008, when hotels slashed rates in an attempt to win back demand. It proved a faulty strategy.
After seeing the airline industry successfully monetize services that used to be free, one of the nation’s biggest hotel owners is hoping to adopt the practice for its guests.
Along with Expedia and Ctrip, Booking.com is one of three global heavyweights to dominate the hotel booking landscape. So, the shift in name from Priceline to Booking is, perhaps, a sign of the firm’s strategic direction - to focus sharply on controlling the booking across all travel verticals, rather than being diverted by helping hotels to price their rooms better.
A ten-year study of pricing and revenues in over 4,000 European hotels finds that pricing strategy drives revenue, when hotels are compared to their competitive set.