June 29, 2017
Travel is the next battleground for China’s tech titans
After slugging it out in ride-hailing, bike rentals and food delivery, the battle between China’s technology giants is spilling over into the travel sector.Read more
Boutique hotels are a good example of how to look beyond pricing and instead put forth a unique personality and guest experience. They took the time to define who they were. Many were able to create a unique identity and following.
A lot of the traditional independent hotels under pressure from stakeholders have turned to price-level competition. When your biggest USP is your price, then that is all that you will be judged on. A lower room rate becomes your only significant offering. But the guest you are targeting has a goal: to keep searching the internet for an ever lower rate.
Pricing is a shortsighted play. If you are looking for long-term profitability, you need to look at the value your are providing to your guests. Taking the time to educate your guests can make all the difference in value perception, allowing you to charge more for your rooms.
Better Perception = Better Price = Better Profits.
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