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How Social and Mobile can Influence Hotel Pricing?

2014-02-25

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The proliferation of social media and mobile technology is increasingly pushing the hotel industry toward a dynamic, customized pricing model informed by big data and delivered to each unique customer through one-to-one marketing. But just because the tools are now more readily available to sell—and specifically, price—hotel rooms individually for every guest, numerous obstacles remain, particularly the ever-present pressure for rate parity levied by OTAs.


Still, few disagree that it’s where the industry is headed. As much as hoteliers hate to view their products as commodities marketed strictly according to price, the truth is that with pricing so transparent these days, booking a room based purely on cost has now become ingrainedin consumer behavior. The convenience and access to greater information that technology provides has only accelerated this evolution.


“As mobile technology extends the cycle to dream, plan, shop and book—so it can be any place, anywhere—that’s going to put more and more pressure on the different channels to make sure their price is competitive,” said Norm Rose, senior technology and corporate market analyst for research firm PhoCusWright. “It’s changing the dynamics of pricing. The idea that we’re actually in a mode where pricing could be unique is also part of a bigger trend of personalization. It’s really designed to increase customer loyalty, get a greater share of the customer wallet, and is spreading throughout the travel ecosystem as a major trend.”



More details at Hotelnewsnow.com