Case Study Of Pricing In Revenue Management

761 Words4 Pages
Pricing is a key element in Revenue Management practices in that it is the strategic price set in order to avoid commoditization (Anderson and Xie, 2010). In other words, pricing deals with the publishing and actual calculation of room rate, thereby, exerting the most control over the amount of revenue involved in their strategy (Freed, 2017).
Bewleys Hotel had the issue of pricing especially when it comes to value-added service pricing. This talks about the addition of value to a product/service bought by customers in order to enhance the perception of value (Jones, 2008). Bewleys Hotel lacks strategic pricing methods which affected the growth of the firm and this can be accrued to the absence of adequate revenue manager in the firm.
As a revenue manager, I will bring to the fore of the company the pricing strategies that can help enhance the company’s revenue. These pricings are the value-based pricing ¬– deals with the perceived value, creating an estimate of market demand on the basis of how customers will perceive the value of the service. Also, Value-added service pricing ¬– value added to service or product purchase by customers with the aim of enhancing perception of value – will be appreciated by me. Furthermore, reference pricing¬ - this Is the pricing expected by a consumer for a product to be sold – thus, it reflect the imaginations of consumer. As such, this will be imbibed with tactfulness (Jones, 2008).
…show more content…
Once the booking pattern is understood, more accurate segmentation and pricing can be achieved (Freed,
Get Access