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what we're thinking about pricing in today's market - from scott sanders

Pricing power doesn’t always weaken along with an economic downturn.  However, when room night demand starts to decline and the ability to forecast it becomes more difficult, many hotels immediately decrease room prices in an attempt to gain market share.  Significantly decreasing prices may not be your best move.  A study conducted over seven years and published in the August 2009 Cornell Quarterly found that in both good and bad economic times, hotels who maintained a slightly higher price than their direct competition did in fact have lower occupancies but they exceeded the competition in revenue per available room (RevPAR).  The results were the same regardless of hotel segments.  The data suggests that lowering price can be a costly decision.  This article can be read in its entirety at http://cqx.sagepub.com/cgi/content/abstract/50/3/325.

 A pricing approach grounded in data driven insights and solid analytics will help ensure pricing moves  not only allow you to out behave your commpetition and drive profitability today but also in the future.

For additional information on how to improve profitability through pricing please go to the contact us section of the web site or call us directly at 352.988.3397 or 352.988.3490.

Funworld article based on Joni Newkirk speech at  IAAPA , November, 2009 - Strategic Pricing with Consumer Insight.  Click here to read.


Water Parks: What Sets Them Apart from Theme Parks and Amusement Parks, Operationally?

Integrated Insight's Scott Sanders sits down with Chad Emerson to discuss some of the key differences between operating theme parks and water parks. Scott Sanders is a Principal and Executive Vice President at Integrated Insight where he partners with clients to implement sophisticated pricing and revenue management strategies.  Click here for full interview.