Hospitality Pricing

Hospitality Pricing

The demand for hospitality service being highly inelastic, pricing right is of the essence. Even a tiny adjustment will lead to substantial profit increases, and moreover, pricing is one of the most efficient tools for controlling the occupancy rate; essentially, pricing is the ultimate tool for optimizing RevPAR.

While the hospitality industry has traditionally showed a relatively disciplined pricing behavior, focus has remained almost entirely on simple revenue-maximization calculations; which, as it turns out, don’t maximize either revenue or profits, as the effects of price on brand positioning and customer satisfaction are neglected.

We help businesses in the hospitality take a data-backed, holistic approach to pricing where all factors are taken into consideration. In particular, we assist firms with:

  • Identifying segments with a high willingness to pay
  • Determining how willingness to pay differ between segments
  • Providing insight for fine-tuning differential pricing strategies

Our Approach

PriceBeam’s solution conducts extensive market research, collects and analyzes data before delivering a detailed report on your customer’s willingness to pay. This data will enable you to stick out from the competition, maximize profit, and set prices that aid your long-run brand positioning.

  • Create Project

    Easily create your project in our cloud-based solution.

  • Conduct Research

    We run the market research for you.

  • Collect Data

    Data is collected and stored online.

  • Analyze Results

    Benefit from our world-class willingness-to-pay analytics to gain insights into customers and price points.

Further Reading

Identifying segments and wtp in hospitality

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Price positioning in hospitality

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Functions of pricing in hospitality

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Whitepaper: Price Optimization for Hospitality Firms

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Further Pricing Reading