The smart hoteliers have realized that rate isn’t about inventory optimization, it’s about price optimization.
“The hotel industry is clear that inventory optimization on its own won’t work,” said Chinmai Sharma, vice president of revenue management for Wyndham Hotel Group. “Set prices are a thing of the past and you have to more toward dynamic pricing. How do you make real time decisions in a practical environment and send them to customers, especially a huge company like us? ... We need to adopt more strategies to maximize every possible revenue opportunity. With new tools and what the leading hotel chains have started to adopt, it’s your prerogative to adopt new techniques.”
Sharma and others discussed the future of pricing strategies during a webinar hosted by the Center for Hospitality Research at the Cornell University School of Hotel Administration and SAS.
Chris Anderson, assistant professor at Cornell, agreed that the industry needs to move to dynamic pricing, but he pointed out the challenges to getting there.
Read the full story at:http://www.hotelinteractive.com/article.aspx?articleID=19414
