A new report from EyeforTravel discusses the ways revenue managers face difficulties when setting pricing strategy, with direct competitors creating the biggest headaches, along with the rise of hotel comparison sites, which have made it easier for consumers to compare hotel prices and products, and the additional supply via the growing number of alternative accommodation websites.
This article makes three main suggestions for revenue managers:
- to build a comprehensive competitive set to understand their own property attributes and the type of guests it attracts
- setting prices carefully, especially when dropping them, – if going head-to-head on price, then hotels should not attempt to undercut the direct competition by more than 5%
- considering unique advantages of properties and not taking on the whole market.