This is the time of year when many companies are planning or executing price increases for the new year. Some are successful and reap considerable improvements in profitability. Others have difficulty in making the price increase stick. And others simply fail to implement a price increase.
Over many years working in the pricing industry, I have seen a number of things that successful companies do when it comes to implementing the price increases. Here are some of those insights.
Topics: Pricing, price increase, revenue management
Some years ago, Cornell University’s Sheryl Kimes published a report on the future of revenue management in the hotel industry. She surveyed almost 500 professionals, mainly revenue managers from the industry, but also consultants and revenue managers from the airline industry. One of the things they highlighted was a shift from the traditional focus on revenue per available room (RevPAR) to total revenue management. However, years have passed, and while some of the major chains have adopted this approach, many are still lacking behind.
Topics: revenue management