Maximising Revenue & Open Pricing

For every property and for each day of week we could draw a demand curve showing how many transient rooms could be sold at various price points (eg the higher the price, the fewer rooms will be demanded, the lower the price the more room will be demanded).

Customers have different needs and behaviours and therefore because of this we are able to segment our demand and offer different price points to our customer segments.

Our customers therefore get a variety of rates in the market place with each rate tied to a specific customer need or behaviour.

This enables us to maximise revenue by using various restrictions to segment our demand based on the needs and behaviours driving them.

Advances in technology and data storage/science now allows for a revenue strategy that goes beyond what dynamic pricing has become.

Open pricing gives properties the ability to price all room types, channels and dates independently of each other to maximise revenues. Properties can price each room across all channels based not on BAR, but on the demand for those specific products and segments.

Categories: Uncategorized