Pricing Right

http://blog.vendoservices.com/vendo-blog/2014/09/05/20141222pricing-right

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You don’t usually think of the travel industry as great innovators. But when it comes to pricing they’ve been ahead of the consumer internet for decades.

You know that the person sitting to your left on a flight paid a different price than you did. You know its true of the guy in the room next to you at the hotel, too.

Why do they charge different prices to different people? To maximize their revenue. Like digital goods the cost of selling one more ticket or room is negligible. So they set lots of different prices to balance selling a lot of flights/rooms and making a lot of money.

That’s something we as an industry don’t do and the result is fewer sales and less revenue. Let’s travel into the world of hotels and airlines to see if we can get some fresh insights and perspectives. That’s what travel is for, after all.

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