- Brian Tracy, Eat that Frog
"If you accept this price, I'll have a lot more work for you in the future." Agree to this deal only if the following points are true:
- Michael C. Donaldson, Negotiating for Dummies
What ProSolutions has learned about pricing in the last 9 years while doing competitive pricing analysis for hotels is that to capture your fair share in your competitive set, knowledge is power. There are so many factors that need to be considered and understood when deciding to lower or raise your prices. Knowing when to vary pricing to match demand patterns, and when to drive revenue and profits need to be key components of your operating strategy. Building a sustainable revenue stream is built by proper pricing strategies that drive revenue both in the short-term and long-term.
Pricing optimization can be tricky in many cases since the market can change daily, as well as seasonally, and you need to have analytics to make these decisions. When the market started to crash several years ago, profitable hotel companies capitalized on understanding exactly where they sat with their competitive set by focusing on incremental revenue- "found" revenue based on this knowledge.
It is a capital mistake to theorize before one has data. Insensibly one begins to twist facts to suit theories, instead of theories to suit facts.
-Sherlock Holmes in Sir Arthur Conan Doyle's "A Scandal in Bohemia"