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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