More than 40 percent of InterContinental Hotel Group's corporate customers after negotiations are complete this year will be using dynamic pricing agreements for some portion of their programs, CEO Richard Solomons said Tuesday during the company’s third-quarter earnings conference call.
IHG for several years aggressively has pushed the dynamic pricing model, in which buyers receive a discount on the best available rate rather than flat rates. Solomons' projections are more than double the 20 percent goal the company had just two years ago.
"It gives corporate customers confidence that they're going to be getting the best rates or good discounts off whatever rate the hotel is charging," Solomons said. "It makes a lot more sense than just negotiating a flat rate the whole time and seems to us a very sensible way of driving that business forward."
Read full story at: http://www.businesstravelnews.com/Strategic-Sourcing/IHG-Doubles-Down-On-Dynamic-Pricing-Push/?ida=Hotel%20Chains&a=proc
