£2.3million immigration hall upgrade plans at Bristol Airport

£2.3million immigration hall upgrade plans at Bristol Airport

Monday, 24 October 2016 14:00

Following ...

Intrepid targets socially conscious Gen Z with new Geckos age-range

Intrepid targets socially conscious Gen …

Monday, 24 October 2016 11:00

30 year olds will be ‘too old’ for Geckos Adventures next year, as the Intrepid Group has announced that it will cut the age range to meet a growing demand...

New survey reveals just one in 12 Brits manage to wangle an upgrade

New survey reveals just one in 12 Brits …

Monday, 24 October 2016 08:40

New research from Jetcost.co.uk has revealed that only 8% of British travellers have actually managed to secure a free upgrade for their holiday, with flight upgrades and hotel room upgrades...

Just You launches travel trade solo experience

Just You launches travel trade solo expe…

Friday, 21 October 2016 14:00

Just You has announced its largest investment to support the travel trade with the launch of 200 joint marketing events to promote solo travel.

Spontaneous people are happier according to Snaptrip survey

Spontaneous people are happier according…

Friday, 21 October 2016 11:00

Spontaneous people are often believed to lead more exciting or glamorous lifestyles and a new study has confirmed that they are happier in all aspects of their lives.

Top Brighton attractions on Combi-Saver tickets for half term

Top Brighton attractions on Combi-Saver …

Friday, 21 October 2016 09:00

Visitors to Brighton this October half term can save up to 20% on its top three paid-for attractions with combination tickets now available for British Airways i360, SEA LIFE Brighton...

Free cabin upgrades with Cosmos Tours

Free cabin upgrades with Cosmos Tours

Thursday, 20 October 2016 14:00

There still’s time for agents to book a Croisieurope river cruise for their customers with a free cabin upgrade on a range of river cruises throughout Europe, when booked with...

Last minute autumn breaks available at Haven

Last minute autumn breaks available at H…

Thursday, 20 October 2016 11:00

Agents can still give their customers a last minute family break this autumn from £99 when booking a Haven holiday between now and November 5.

Skiers urged to head east for best piste costs reveals new report

Skiers urged to head east for best piste…

Thursday, 20 October 2016 08:00

Cash-conscious skiers can avoid the slippery slope of higher prices for their annual downhill trip by heading to ski resorts in Eastern Europe.

Design an anniversary poster for DFDS competition

Design an anniversary poster for DFDS co…

Wednesday, 19 October 2016 14:00

Ferry operator, DFDS, is putting out a call to professional and amateur artists to create a poster that will be used in their 150th anniversary celebrations this year.

Savings on worldwide adventures with Explore

Savings on worldwide adventures with Exp…

Wednesday, 19 October 2016 11:00

Explore has launched a new collection of worldwide adventures with a launch offer of up to 10% discount on all new trips booked by November 7.

New route to Seattle makes it one to watch for 2017

New route to Seattle makes it one to wat…

Wednesday, 19 October 2016 09:12

Seattle is expected to be one of the fastest growing US destinations for UK travellers next year with a Virgin Atlantic direct non-stop daily flight launching March 2017, new hotel...

Air Transat launches 2017 programme with increased connections across Canada

Air Transat launches 2017 programme with…

Tuesday, 18 October 2016 14:04

Air Transat has expanded its programme of flights from the UK to Canada with increased capacity and connections for travel in 2017.

Oceania Cruises reduces single supplement fares

Oceania Cruises reduces single supplemen…

Tuesday, 18 October 2016 14:02

Oceania Cruises has launched a reduced single supplement promotion for solo travellers, with guests offered single supplements fares from 25% on seven itineraries, booked before December 31.

Mall of America welcomes arrival of MythBusters

Mall of America welcomes arrival of Myth…

Tuesday, 18 October 2016 14:00

Running throughout autumn until January 15, 2017, visitors can ignite their curiosity and discover whether they can really huff and puff to blow a house down; if running in the...

Emirates to launch new daily service to Fort Lauderdale

Emirates to launch new daily service to …

Monday, 17 October 2016 11:00

Emirates has announced that it will launch a daily service between Dubai and Fort Lauderdale-Hollywood International Airport, on December 15, serving the South Florida area, including Fort Lauderdale, Miami and...

AndyArcherToday's customer is more cost conscious than ever and this is having a big impact on the travel and hospitality sector. According to recent research from Mintel, an increasing number of holiday and hotel purchases are being made online, as holidaymakers are increasingly of the opinion that it offers them the best value for money.

This has left traditional travel companies struggling as their 'one-stop-shop' formula is no longer driving sales. Now consumers are going online and booking flights and accommodation separately. So how does the holiday industry ensure it is still encouraging and maximising demand?

The price factor
Businesses in the travel and hospitality sector need to be able to compete on price by looking at external data, such as the prices of airlines and direct accommodation and ensuring that they can compete. As such, adopting flexible pricing and revenue management tools and practices should be seen as essential, yet many businesses ironically see customer satisfaction as a huge stumbling block towards their adoption.

We live in a world of Big Data where businesses have access to sales, Web visitor and search history information, and so for optimum revenue generation, businesses should build pricing around the customer, as well as around market conditions. The perception by many revenue managers is that customers either actively resist revenue management or think that it is a business trick to earn more money. However, customers do actually appreciate revenue management efforts if a company is successful in communicating the benefits of the dynamic pricing that it brings. Customers rarely resist paying a premium for options they see as valuable, such as convenience and choice.

Check out the reviews
It is all too easy to often blame online holiday review and price aggregator sites, such as TripAdvisor, for the problems the travel industry is facing. However, such sites in fact offer genuine reviews from holidaymakers, and are therefore a vital source of data. Rather than ignore these sites, hotels need to use them to gain a better understanding of consumers and build flexible, sustainable pricing models based on that knowledge. For example, if they are highly rated on TripAdvisor, even the smallest hotels could perhaps afford to increase rates. Similarly, if a hotel finds its sales figures are unexplainably dipping, they could use online data to see where the issue is and decide whether they need to adapt their pricing or make changes to the business itself to improve the customer experience.

Talk to your customers
Ultimately, today's customers are more appreciative of dynamic pricing than many organisations think – really, it's all about communication. Ultimately combining good communication with the latest pricing and revenue management techniques could help organisations boost their annual revenues by up to 4% (Source: The Truth About Pricing and Revenue Management). It is therefore essential that companies have their marketing departments closely aligned with their revenue managers in order to ensure that they are communicating exactly what it is that the customer is receiving in exchange for occasionally paying a higher price. Such benefits could include the opportunity to line up a desired room at short notice or having a later check-out time.

Revenue management systems can help businesses in the travel and hospitality industry better understand what their customers want, when they want it and how much they are willing to pay. Customer profiling is not a new art but, with the amount of data now available - thanks in part to online growth - these profiles can be far more accurate and effective.

By utilising and communicating this approach to intelligent pricing hotels can maximise capacity, plug revenue leakages and ultimately put them on the road to sustained success.

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