Revenue Management (RM) and Pricing have been around now for decades. Since US Congress passed the Airline Deregulation Act back in 1978 RM has moved from airlines, to hotels and on to other industries. 34 years later hotels have RM and pricing systems, channel management tools and supporting data that make it easy to keep prices right where they need to be.
An outsider reading the current industry commentary and best practice would surely conclude that hotel pricing is highly dynamic, with smart technology balancing supply and demand in an environment of constantly-changing prices. But is that what really happens? Pricing is a hot topic right now, not least because hotel Average Daily Rates (ADRs) appear to be on their way back up after several years in the doldrums. It is tempting to conclude that rising ADRs are connected to greater sophistication in pricing. But not tempting enough to draw the conclusion without testing it first. Earlier this year Hotel Compete began collecting data to test this hypothesis. We gathered a random sample of rate changes from a range of stay nights from February to late July 2012. The sample includes almost three million stay night rate observations, from just over 32,000 US hotels. The analysis monitored the rate changes applied by hotels on specific stay nights to understand the frequency and magnitude of rate changes.
Source
Commis II Indian - Jobs in India
An outsider reading the current industry commentary and best practice would surely conclude that hotel pricing is highly dynamic, with smart technology balancing supply and demand in an environment of constantly-changing prices. But is that what really happens? Pricing is a hot topic right now, not least because hotel Average Daily Rates (ADRs) appear to be on their way back up after several years in the doldrums. It is tempting to conclude that rising ADRs are connected to greater sophistication in pricing. But not tempting enough to draw the conclusion without testing it first. Earlier this year Hotel Compete began collecting data to test this hypothesis. We gathered a random sample of rate changes from a range of stay nights from February to late July 2012. The sample includes almost three million stay night rate observations, from just over 32,000 US hotels. The analysis monitored the rate changes applied by hotels on specific stay nights to understand the frequency and magnitude of rate changes.
Source
Commis II Indian - Jobs in India