Open pricing and the future of revenue management
While hotel industry revenues continue to rise, commissions paid to third parties are growing twice as fast.
Furthermore, companies like Priceline are worth many times more than the largest hotel brands. The hotel industry is nearing a tipping point.
Systems and strategies based on a time when most customers booked directly with hotels are no longer profitable, if even viable, in today’s world of online travel agents and emerging intermediaries.
Revenue management must transition to a more holistic revenue strategy that employs new technologies and techniques to combat the growing complexity of the hotel distribution landscape.