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Dynamic pricing and value generation in hospitality sector, Jan Kamenicek, TravelClick
Dynamic pricing and value generation in hospitality sector, Jan Kamenicek, TravelClick
Dynamic pricing and value generation in hospitality sector, Jan Kamenicek, TravelClick
Dynamic pricing and value generation in hospitality sector, Jan Kamenicek, TravelClick
Dynamic pricing and value generation in hospitality sector, Jan Kamenicek, TravelClick
Dynamic pricing and value generation in hospitality sector, Jan Kamenicek, TravelClick
Dynamic pricing and value generation in hospitality sector, Jan Kamenicek, TravelClick
Dynamic pricing and value generation in hospitality sector, Jan Kamenicek, TravelClick
Dynamic pricing and value generation in hospitality sector, Jan Kamenicek, TravelClick
Dynamic pricing and value generation in hospitality sector, Jan Kamenicek, TravelClick
Dynamic pricing and value generation in hospitality sector, Jan Kamenicek, TravelClick
Dynamic pricing and value generation in hospitality sector, Jan Kamenicek, TravelClick
Dynamic pricing and value generation in hospitality sector, Jan Kamenicek, TravelClick
Dynamic pricing and value generation in hospitality sector, Jan Kamenicek, TravelClick
Dynamic pricing and value generation in hospitality sector, Jan Kamenicek, TravelClick
Dynamic pricing and value generation in hospitality sector, Jan Kamenicek, TravelClick
Dynamic pricing and value generation in hospitality sector, Jan Kamenicek, TravelClick
Dynamic pricing and value generation in hospitality sector, Jan Kamenicek, TravelClick
Dynamic pricing and value generation in hospitality sector, Jan Kamenicek, TravelClick
Dynamic pricing and value generation in hospitality sector, Jan Kamenicek, TravelClick
Dynamic pricing and value generation in hospitality sector, Jan Kamenicek, TravelClick
Dynamic pricing and value generation in hospitality sector, Jan Kamenicek, TravelClick
Dynamic pricing and value generation in hospitality sector, Jan Kamenicek, TravelClick
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Dynamic pricing and value generation in hospitality sector, Jan Kamenicek, TravelClick

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Dinamično določanje cen in vzvodov za ustvarjanje dodane vrednosti v sektorju turizma. …

Dinamično določanje cen in vzvodov za ustvarjanje dodane vrednosti v sektorju turizma.

Prezentacija je bila predstavljena v okviru 19. slovenske marketinške konference 2014 v Portorožu.

Published in: Marketing, Business, Travel
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  • 1. Dynamic pricing and value generation in hospitality sector Slovenian Marketing Conference Jan Kamenicek Regional Director Eastern Europe 5/30/2014
  • 2. 5/30/2014 2 Agenda Specifics of service/hospitality operations Challenges hospitality companies face in pricing Tools available to hospitality sector helping understand and predict demand Solutions hospitality companies should use to implement efficient pricing decisions
  • 3. Hospitality sector specifics 5/30/2014 3
  • 4. 5/30/2014 4 Intangibility Destination A: $800 Destination B: $300 Pricing depends on intangible factors such as popularity of the destination, hotel, prevailing economic and social climate, logical comparison impossible
  • 5. 5/30/2014 5 Fragmented Macro Supply In the vast majority of destinations typically no market leader that could dictate the price
  • 6. 5/30/2014 6 Constrained Micro Supply Depending on the season the hotels may be too small (and start rejecting reservation requests) or too big (and launch activities to sell excess supply) Unsold room on a given day is an opportunity cost (like a stale yogurt), an unsold room on 27.5.2014 will never be resold The value of “X” reservations rejected due to a sold out status minus the value of “X” last reservations still accepted before the sold out status represents an opportunity cost
  • 7. 5/30/2014 7 Human Factor Actual service delivered by people, the least controllable asset. With the growing importance of social networks and review sites the human factor plays a crucial role in the pricing decisions
  • 8. Challenges hospitality companies face in pricing 5/30/2014 8
  • 9. 5/30/2014 9 Increased dependence on exogenous factors Political situation The impact of the exogenous factors on hospitality pricing decisions is more significant than with other (primarily non-service) industries Outbreak of epidemics (SARS) Exchange rate volatiliity Accessibility of the destination Government incentives Events in the destination
  • 10. 5/30/2014 10 Dissonance in the purchase/consumption process Purchase decision Actual purchase ExperienceHospitality Consumer Goods Purchase decision Actual purchase & Experience Consumer Goods Purchase decision & Actual purchase & Experience
  • 11. 5/30/2014 11 Behavioural segmentation High Price Sensitivity Low Price Sensitivity Low Demand Predictability High Demand Predictability Meetings, Events Congress Corporate Airline , Crews Individual transient Group business
  • 12. 5/30/2014 12 Fragmented distribution The heterogeneity of distribution makes it stressful for hotels to maintain correct rates across all channels Source: VFM/Leonardo
  • 13. 5/30/2014 13 When pricing hotels need to consider: Target segments When these segments typically book What is the general price level in the market What external circumstances play in hotel’s favour Key is the forward looking approach
  • 14. Tools available to hospitality sector helping understand and predict demand 5/30/2014 14
  • 15. 5/30/2014 15 Future competitive segment information
  • 16. 5/30/2014 16 Competitive segment information On most of the dates the hotel is running under full occupancy and at occupancy level up to 40% lower than the competition Group and Retail segment underpenetrated, hotel is focusing on lower margin segments such as wholesale and corporate (negotiated)
  • 17. 5/30/2014 17 Competitive segment information The hotel has an opportunity in group segment on 17 and 18 Oct. The competition is running at a relatively high occupancy on these days and 1/3 of their sold capacity is allocated to groups. The hotel can offer a higher rate to any potential group request
  • 18. 5/30/2014 18 Bookings made versus actual arrivals
  • 19. 5/30/2014 19 What rates do my competitors sell at? Real time future rates available to review and correlate with actual hotel occupancy, forecast and competitors’ segmentation
  • 20. Solutions hospitality companies should use to implement efficient pricing decisions 5/30/2014 20
  • 21. 5/30/2014 21 Efficient channel management
  • 22. 5/30/2014 22 Efficient channel management GDS Hotel Web Booking Engine Online Travel Intermediaries Central reservation system management (CRS) Property Management System (PMS) Centralized updates of all E-channels from CRS or PMS (hotels can choose) All bookings are automatically sent into PMS
  • 23. Thank you. Jan Kamenicek jkamenicek@travelclick.com 5/30/2014 23

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