Revenue Strategy: The High Cost of Ignoring Value

Please download to get full document.

View again

All materials on our website are shared by users. If you have any questions about copyright issues, please report us to resolve them. We are always happy to assist you.
 9
 
  Pricing products and services has gotten more challenging due to the transparency enabled by digital. Customers today more about your products, services, and prices than most of your employees do. Getting pricing right doesn't just depend on revenue management, it depends on revenue strategy. These slides look at the importance of providing consumer value in your pricing and how to express that value to your customers online.
Related documents
Share
Transcript
  • 1. The High Cost of Ignoring Value Tim Peter President, Tim Peter & Associates
  • 2. Sold for $28,000
  • 3. Top search term prior to booking?
  • 4. So, here’s a question:
  • 5. Because we’ve trained them
  • 6. percent
  • 7. Price really only matters for value
  • 8. “...humans rarely choose things in absolute terms. We don’t have an internal value meter that tells us how much things are worth. Rather, we focus on the relative advantage of one thing over another, and estimate value accordingly.” –Dan Ariely
  • 9. What do guests say you do well?
  • 10. Price anchoring and up-sell A/B test $189 24-Hour Dining Package • Prepaid parking • Breakfast • Dinner in restaurant Tested price anchored up-sell of amenities packages in confirmation page and pre-arrival email: $49 Morning Dining Package • Prepaid parking • Breakfast
  • 11. Equivalent of extra 0.5% ADR YOY
  • 12. Essentially no chance of random occurrence $25,000 in GRR for $5,000 spend
  • 13. Thank You Web: timpeter.com Phone: 201-305-0055 Email: tim@timpeter.com Twitter: twitter.com/tcpeter
  • 14. Google Data Studio
  • 15. Soft Business Results Reduce Rates Reduce Service or Marketing to Pay for Rate Reductions Short-term Bookings Improve Competitors Respond Guest Expectations Shift Guest Experience Deteriorates
  • 16. Soft Business Results Reduce Rates Reduce Service or Marketing to Pay for Rate Reductions Short-term Bookings Improve Competitors Respond Guest Expectations Shift Guest Experience Deteriorates X
  • Related Search
    We Need Your Support
    Thank you for visiting our website and your interest in our free products and services. We are nonprofit website to share and download documents. To the running of this website, we need your help to support us.

    Thanks to everyone for your continued support.

    No, Thanks