Wednesday, November 4, 2009

Dynamic Pricing Across the Accommodation Industry

I came across an interesting article about the Australian accommodation market and what will happen after the GFC (Global Financial Crisis).

Its a good read for those in the hotel industry and there are a few key points brought up by Quest Chairman Paul Constantinou that I couldn't agree with more:
  • "Four to five years before the GFC hit, the industry had been under-supplied. The strong demand for accommodation caused bigger players to get greedy and introduce dynamic pricing to the market.
  • "It's about looking after your customer, driving loyalty, and not treating them like they're a commodity. There's no use giving a customer a loyalty card if you have no loyalty."
  • The clear lesson for accommodation providers is to focus on the long-term and build genuine relationships with its corporate customers, through thick and thin.
Click on the title below to read the full story.

Dynamic Pricing Across the Accommodation Industry | News Archives

For the last 12 months the GFC has forced travel operators to offer more competitive pricing, but in the wake of a recovering economy, one leading industry player says consumers should brace themselves for price hikes once more.

Dynamic (or variable) pricing was in full swing just 18 months ago, with large accommodation providers charging the corporate world up to three times more for its rooms during peak periods.

The GFC reversed this dynamic, causing average room rates and occupancy rates to decline dramatically.

Will the accommodation industry continue to suffer, or will the much maligned dynamic pricing model re-surface some time soon with the improvement of business confidence?

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