Pricing Data is Your Buoyancy Aide

By Michael McCartan Managing Director Europe, the Middle East, and Africa, Duetto | March 20, 2011

Competitor rate data should not be about price wars but used to effectively position your product to optimize the value of your offering. Consumers are not just looking for cheaper deals; they want a good deal. Gathering the right business intelligence will help you manage your rates according to market conditions without affecting the value and prevent your rates from damaging important OTA relationships. In this article we explain how you can use pricing data to manage competitors and your contractual obligations to OTAs.

Pricing data is your buoyancy aide

Pricing data has become a necessity and is influencing the value of products and brands for many different industry market places. The ever increasing popularity and importance of price comparison websites ( for example electronics, food & beverages, car insurances and many other industries ) has had and will have an impact on all industries including those that traditionally were valued as unique products - essentially meaning hotel rooms are no different to a can of soup.

Consumers now judge their purchase decisions based on two criteria, their expectations and price. Today product differences are almost less important than the important price factor.

Resellers, influenced by a change in purchase behavior, are reacting to price-sensitivity by lowering retail prices and creating best-buy packages in order to compete and survive during a difficult economy, however, negatively affecting the perceived value of products.

In the last few years as part of this movement, basic goods have been compared against more premium quality products, which has forced brands to take a different sales approach and engage with the markets more dynamically - this is especially prevalent for the hospitality industry. Hotels panicked and entered an almost uncontrollable price war previously only present in other industries. This has created one of the industries greatest challenges - to counter sinking rates and brand perception to remain buoyant while the economies calm and strengthen again.

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Coming up in January 2018...

Mobile Technology: Relentless Innovation

Technology has become a crucial component in attracting and retaining hotel guests, and the need to enhance a guest’s technology experience is driving a relentless pace of innovation. To meet and exceed guest expectations, 54% of hotels will spend more on technology in 2018, and mobile solutions in particular will top the list of capital investments. Many hotels are integrating mobile booking, mobile keys, mobile payments and mobile check-in into their operations. Other hotels are emphasizing the in-room experience, boosting bandwidth and upgrading flat screen TVs to more easily interface with guest mobile devices. And though not yet mainstream, there are many exciting technology developments on the near horizon. The Internet of Things (loT) is taking form in some places, and can be found in guest room control systems, voice activation systems, and in wearable sensors that can be used for access and payment options. Virtual reality headsets are available at some hotels so guests can enjoy virtual trips to exotic locations or if off-property, preview conference facilities and guest rooms. How long will it be before a hotel employs a fleet of robots for room service, or utilizes a hologram as a concierge, or installs gesture-controlled walls that feature interactive digital displays? Some hotels are already using augmented reality for translation services, or interactive wall maps, or even virtual décor. This pace of innovation is challenging property owners and brands to stay on top of the latest technology trends while still addressing current projects. The January Hotel Business Review will explore what some hotels are doing to maximize their opportunities in the mobile technology space.