Pricing Strategy and Distribution Channels in Hotel Revenue Management
Pricing is one of the most powerful tools a hotel can use to increase revenue. This course teaches participants how to set the right prices, develop rate fences (differentiate prices by customer type), and use multiple distribution channels to manage price more effectively.
Participants will learn about the impact of variable pricing and discounting on revenue management in the context of price elasticity, optimal price mix, perceived fairness, and congruence with positioning and sales strategies.
Channel management is an essential tool for controlling differentiated pricing, maintaining rate fences, and increasing revenue. Participants will explore various approaches to managing distribution channels including direct sales, agencies, the Internet, and opaque pricing channels.
Finally, discussions of best practices and industry case studies help extend and contextualize the learning experience. Participants use Microsoft Excel to practice pricing and distribution-channel-management techniques.
Participants who complete this course will be able to...
- Use variable pricing strategies to increase revenue
- Develop effective rate fences
- Manage prices using distribution channels
Module 1 - Why Price Matters
- Why Does Price Matter
- Pricing in Revenue Management
- Multiple Rates
Module 2 - The Optimal Price Mix
- Setting Prices
- Positioning Your Price
- Selling Strategies
Module 3 - Rate Fences
- Rate Fence Mistakes
- Benefits of Rate Fences
Module 4 - Managing Perceptions of Price
- Innovative Pricing Practices
- Fair Prices
Module 5 - Distribution Channel Management
- Distribution-Management Issues and Trends
- Distribution-Channel Intermediaries
Who should attend
This course is designed for hospitality managers, general managers, revenue managers, and other hospitality professionals responsible for the financial performance of their organization.