April 09, 2012

Is TripAdvisor’s Tingo a wake-up call for bad hotel revenue management?

As hassle free as Tingo claims the user experience will be, it obscures the industry’s existing incentives and value offers. According to this article, Tingo shines a bit of light on marginalized revenue management practices of bottom-dwelling’ properties and their rate practices.

We see it all the time: Travelers are planning trips months in advance thinking they will be rewarded with low rates for a hotel stay only to see standard rack rates.
And, their experience confirms once again online travel agencies’ brilliant marketing message — the last-minute booking will bring the best price.

For our industry, as revenue management goes, the strategy is relatively simple. Develop what should be base business with group, wholesale, consortia, in and around 90+ days out. Then follow it with incentive offers, early pre-pays, loyalty marketing and opaque package offers 30+ days out.

Only after, when you enter into your prime booking window (less than 30 days) do you begin to yield higher rates on your remaining inventory based on your “compressed” market demand. Sounds pretty “101,” right?

Then why is Tingo such a worry?

Get the full story at Tnooz

Read also "A closer look at TripAdvisor’s Tingo.com"