Is Rate Shopping an Intelligent Approach to Increase Topline for Hotels?
Pricing in the hospitality industry is done on various models. Amongst the popular ones include cost based, market based, margin based, predatory, loss leading etc but the most common practice is to bench mark your price against other hotels in your competitive set. This is because travel is a huge expense at personal or an organization’s level and price comparison of various hotels of similar profile is an obvious step in the procurement / buying process.