Blindly follow the Competitor?

Adjusting rates is not about following what the competitor is doing. Competitors rate moves are a guide but not the sole driver to your rate plan strategy. Your rate fluctuations should be demand driven by knowing the true demand patterns for your product.There are many reasons why a competitor may have adjusted their rates but you may not need to –
Perhaps they had a late group cancel and now have more inventory available than you
Their overall business mix may be different and not a competitor to you on this day given their pick up trends, current mix and inventory left available
How is your pick up trending? has it changed since the competitor moved price?

These are a few examples of the checklist to run through before a move on price. Remember who says the competitor has it right?

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