The 3 levels of pricing architecture: where is your profitability decided? (Part 2)
📈 Hotels are shifting pricing strategies across three levels of pricing architecture. At Level 1, hotels use static pricing, risking lost ADR in high demand and slow conversions in low demand. Level 2 offers dynamic pricing, adjusting supplements based on demand and enhancing conversion. Level 3 uses Revenue Management Systems for predictive pricing, requiring extensive data mapping. Level 2 often offers the best profitability, utilizing strategic disparities against OTAs and margin arbitrage to increase direct bookings and revenue.
Share
