The company says that it is vital that organisations take a flexible approach to pricing to ensure long-term success. In a new eBook titled: The Truth About Pricing and Revenue Management, released by JDA Software Group, Inc., The Supply Chain Company, it estimates organisations could see a 1-3% increase in revenue if such an approach is taken, ignoring it could see the industry lose up to $17billion a year in potential revenue.
In the eBook, the company reveals that a third of hotel properties do not have automated revenue management systems in place. An automated approach means businesses can adjust pricing as customer demand, competitor pricing and other external influences fluctuate and ensure that pricing remains at a profitable but competitive level.
The company's regional vice president pricing and revenue management, Andy Archer, said: "Many organisations take an all time consuming, manual approach, or worse – do no revenue management at all – because they mistakenly assume revenue management systems are tough to implement and run. Additionally, our research has shown that more than half of revenue managers believe customers think revenue management is a business trick that drives customer will if prices are complex and change too frequently.
"The truth is that customers are more open to a company's revenue management efforts if that organisation communicates the benefits of the dynamic pricing it brings. Simply put, a more flexible approach to pricing offers the means to truly move with the industry. If demand is expected to dip, or boom, pricing is instantly repositioned to reflect that shift. It is this ability to better understand customers and be proactive in pricing, rather than simply reacting to the competition that will help ensure sustained success for the hospitality sector."
To download the eBook visit: http://jda.com/pr5myths