Premium Essay

1.1 Reading - Pricing Strategy

In: Business and Management

Submitted By roshnicha
Words 2045
Pages 9
White Paper

Rate Optimization: Enhancing Your Hotel’s Pricing Strategy
For many hotels, developing effective pricing strategies remains a complex issue for revenue managers. Their goal, ultimately, is to maximize companywide revenue and profits while building strong hotel partner relationships within their marketplace. The emergence of rate optimization has made strides to demystify pricing practices and help revenue managers understand the demand characteristics of their products, understand the price sensitivity of demand and design a rate spectrum that is tuned to all these. This allows hoteliers to take full advantage of their business opportunities, ensuring that they are capturing the maximum revenue at all times through an optimized rate spectrum. Beyond the scope of regular revenue management practices such as selecting the correct overbooking, rate restrictions and best available rate, lies the challenge of selecting the correct rates to choose from in the first place. Rate Optimization is the practice of selecting the rates offered in a rate spectrum based on the historical price sensitivity of demand. The goal of rate optimization is to understand the demand characteristics of products and the price sensitivity of demand and define a rate spectrum that will capture the maximum revenue over time.

Dr. Ravi Mehrotra
President, IDeaS Revenue Optimization

Price Sensitivity, or Elasticity of Demand
The Price Sensitivity of Demand is a measure of the change in demand to a change in price. If a small change in price is accompanied by a large change in demand, the product is said to be elastic, (or responsive to price changes). However, a product is inelastic if a large change in price is accompanied by a small amount of change in demand.

2

IDeaS - A SAS COMPANY

Rate Optimization: Enhancing Your Hotel’s Pricing Strategy

Price sensitivity

Similar Documents

Premium Essay

Marketing

...MKC1 Market Environmental Variables Reading: Contemporary Marketing: Chapter 3 Questions: 1. How would you categorize Generation X using the five segments of the marketing environment? A: Competitive Environment B: Political-legal environment C: Economic environment D: Technological environment E: Social-cultural environment 2. Joe and Ryan both have storefronts in the local mall. Joe sells candies and Ryan sells pretzels. Are Joe and Ryan in direct competition with each other? A: Yes B: No Consumer Behavior and Marketing Reading: Contemporary Marketing: Chapter 5 Questions: 1. Rachel and Sarah’s parents always purchased groceries from the local Aldi marketplace. What is this type of behavior an example of? A: Cultural influences B: Social Influences C: Personal factors 2. Maryanne purchases Maxwell House coffee every two weeks from the grocery. What is this type of behavior an example of? A: Routinized Problem Solving B: Limited problem solving C: Extended problem solving 3. Aaron does research on several local colleges before applying to his first three choices. This is an example of: A: High – involvement purchase decision B: Low – involvement purchase decision Marketing Plans Reading: Contemporary Marketing: Chapter 2 + Ch. 2 Appendix Web sites: http://www.jpec.org/handouts/jpec33.pdf http://www.netmba.com/marketing/process/ Questions: 1. Strategies are designed to meet objectives. Tactics...

Words: 8933 - Pages: 36

Free Essay

Asdw

...COURSE: MATHEMATICS I (MTH 101) SYLLABUS I. Basic algebra: Linear and quadratic equations, Solving linear and quadratic equations, Application of equations: profit, pricing, savings, revenue, sales tax, investment, bond redemption, linear inequalities, applications of inequalities: profit, renting verses purchasing, leasing versus purchasing, revenue, current ratio, investment, Maple session on solving linear, quadratic and higher degree equations, solving inequalities II. Functions and Graphs: Introduction to functions, domain and range of a function, Applications: demand, supply and profit functions, demand and supply schedule, value of business, depreciation, Special functions: polynomial, rational, piecewise defined functions, Absolute value function, and evaluation of such functions. Combination of functions. Applications: cost, investment, sales, profit, business, Graphs of functions: linear, quadratic, piecewise defined functions, graphing of quadratic functions by finding vertex, Applications on graphs: inventory, debt payment, pricing, revenue and profit, demand and supply curves, Maple session on functions and graphs III. Lines and Systems: Equation of a straight line, slope and intercept of a line, parallel and perpendicular lines, Applications: price-quantity relationship, production levels, cost, revenue, demand and supply equations, isocost line, isoprofit line, depreciation, appreciation, systems of linear equations, solution of system...

Words: 846 - Pages: 4

Premium Essay

Try to Read It

...Syllabus Certified General Accountants Association of Canada 100 – 4200 North Fraser Way Burnaby, British Columbia Canada V5J 5K7 www.cga-canada.org © CGA-Canada, 2013 All rights reserved. These materials or parts thereof may not be reproduced or used in any manner without the prior written permission of the Certified General Accountants Association of Canada. Printed in Canada ISBN for an individual volume: 978-1-55219-599-4 About CGA-CANADA _________________________________________ CGA-Canada today The CGA designation focuses on integrity, ethics, and the highest education requirements. Recognized as the country’s accounting business leaders, CGAs provide strategic counsel, financial leadership, and overall direction to all sectors of the Canadian economy. The Certified General Accountants Association of Canada — CGA-Canada — sets standards, develops education programs, publishes professional materials, advocates on public policy issues, and represents CGAs nationally and internationally. The Association represents 75,000 CGAs and students in Canada, Bermuda, the Caribbean, Hong Kong, and China. Mission CGA-Canada advances the interests of its members and the public through national and international representation and the establishment of professional standards, practices, and services. A proud history CGA-Canada was founded in Montréal in 1908 under the leadership of John Leslie, vicepresident of the Canadian Pacific Railway. From the beginning, its objective...

Words: 39811 - Pages: 160

Free Essay

Bargaining

...transaction that will take place, and eventually come to an agreement. Bargaining is an alternative pricing strategy to fixed prices. Optimally, if it costs the retailer nothing to engage and allow bargaining, he can divine the buyer's willingness to spend. It allows for capturing more consumer surplus as it allows price discrimination, a process whereby a seller can charge a higher price to one buyer who is more eager (by being richer or more desperate). Haggling has largely disappeared in parts of the world where the cost to haggle exceeds the gain to retailers for most common retail items. However, for expensive goods sold to uninformed buyers such as automobiles, bargaining can remain commonplace. Dickering refers to the same process, albeit with a slight negative (petty) connotation. Bargaining is also the name chosen for the 3rd stage of the Kübler-Ross model (commonly known as the stages of dying), even though it has nothing to do with price negotiations. Contents * 1 Contexts where bargaining is allowed * 1.1 Regional differences * 2 Theories * 2.1 Behavioral theory * 2.2 Game theory * 2.3 Bargaining and posted prices in retail markets * 2.4 Processual theory * 2.5 Integrative theory * 2.6 Narrative theory * 2.7 Automated bargaining * 2.8 Anchor Pricing * 3 See also * 4 References * 5 Further reading Contexts where bargaining is allowed Not all transactions are open to bargaining. Both religious...

Words: 629 - Pages: 3

Premium Essay

Hsm430 Course Project

...discuss the marketing analysis that will identify a specific proposed healthcare service for Lanier Hospital which is a cancer treatment center. It will also go in great detail about the overall marketing goals for the cancer treatment center that is being added to Lanier Hospital. It will also identify specific marketing objectives in the target market. Last but not least, it will make mention of the marketing plan that will give identify specific marketing strategies for achieving those objectives and goals such as, Product Strategies, Distribution Strategies, Promotion Strategies, and Pricing Strategies. After reading this information you will fully understand the marketing plan for the cancer treatment center at Lanier Hospital. Demographic profile As of the 2010 census the population of Valley is 9,524. The racial breakdown is whites 64.0%, Blacks 33.0%, American Indian and Alaska Native 33.0% Asian 0.1%, Native Hawaiian and Other Pacific Islander 1.2%, people reporting more than one race 0.1%, Hispanic or Latino origin 1.1%, and white not Hispanic 1.7%. When it comes to the percentage of education it is listed as High school graduates falls at 74.1%. The people amount with a bachelor’s degree or higher is10.9% (QuickFacts from the US Census Bureau, 2012). Below you will find charts that will help you to better understand the gender, age and race breakdown of Valley, Alabama. Gender chart which shows the gender being 47% Male and 53% Female The age breakdown...

Words: 2588 - Pages: 11

Premium Essay

Unidentified Industries

...Finance Theory II (Corporate Finance) Katharina Lewellen February 5, 2003 1 Today Preliminaries Introduction to the course Corporate finance Types of questions Course outline Course requirements Case of Unidentified Industries 2 Preliminaries Texts − Brealey & Myers, Principles of Corporate Finance, 7th edition − Higgins, Analysis for Financial Management, 7th edition − Case and Readings Packet Professor − Katharina Lewellen 3 Introduction Corporate finance Investment policy How the firm spends its money (real and financial assets) Financing and payout policy How the firm obtains funds (debt, equity) and disposes of excess cash 4 Balance sheet view of the firm Assets Liabilities Current Liabilities Current Assets Long-term debt Fixed Assets 1. Tangible 2. Intangible Shareholders’ Equity 5 Introduction, cont. But we also need to understand… Capital markets Types of securities (stocks, bonds, options…) Trade-off between risk and return Pricing Taxes and government regulation 6 Financial markets Firms Curr assets Fixed assets Debt Equity Financial Markets Individuals Financial Intermediaries Government 7 Introduction, cont. Finance is really about value Firms Projects and real investments Securities Common characteristic Invest cash today in exchange for cash (hopefully) in the future Central question How do we create value through investment and financing decisions? 8 Types of questions Investment...

Words: 2967 - Pages: 12

Free Essay

Syllabus

...points are now combined with the participation points for each week. You, as the instructor, may create a separate line item for discussion question points if you choose. Please note that some assignment points may have changed. Course Materials Ball, L. M. (2009). Money, banking, and financial markets. New York, NY: Worth Publishers. McConnell, C. R., Brue, S. L., & Flynn, S. M. (2009). Economics: Principles, problems, and policies (18th ed.). Boston, MA: McGraw-Hill Irwin. Pugel, T. A. (2009). International economics (14th ed.). Boston, MA: McGraw-Hill Irwin. All electronic materials are available on the student website. Week One: Increasing Revenue | | Details | Due | Points | Objectives | 1.1...

Words: 5287 - Pages: 22

Premium Essay

Business Finance

...writing from: 0    BUSINESS FINANCE OUbs002223 January 2014 OUbs002223 Business Finance Table of Contents      Unit 1 Agency Issue between shareholders and managers Unit 2 Investment appraisal methods Unit 3 Risks and Return Unit 4 Asset Pricing Models, CAPM & APT Unit 5 Capital Market Efficiency and Stock Market Anomalies Unit 6 Cost of Capital, Shareholder’s wealth, Gearing & Leasing Unit 7 The dividend decision Unit 8 Corporate Restructuring 1    Aim of the Module  To provide learners with knowledge of the principles and practice of the financing decisions of enterprises. Learners will learn about the decisions which firms make about financing their investments in productive capital. Teaching and learning strategy  The teaching and learning strategy is designed to develop in students an ability to understand the mechanisms of financial markets and the issues pertaining to investment decision in those markets. Students should be able to understand and apply the time value concepts with regards to investment decision. They should also be able to evaluate the risks and returns of financial instruments. Assessment Strategy        Unit(s) of Assessment  Assignment  WrittenExamination  Weighting Towards Module Mark (%)    30    70  GUIDELINES FOR SELF­STUDY  This manual aims at fulfilling the preciously identified learning objectives. Despite the fact that this manual is self-contained...

Words: 8084 - Pages: 33

Free Essay

Energy Drink

...Price an option, (Eur, Amr, Ber, Asian) Estimation of the term structure, (cubic spline). Predict the standard deviation of stock returns for next week, (basis for risk management). - You know the theories, but it will take you half a “term paper” to get an answer if you have not tried it before. 4 / 17 Structure of the Lessons 15 lessons (2 hours lecture and exercises) 14 has the following structure: 1. 2. 3. 4. E-lec: Review of last weeks exercise E-lec: Financial theory and Excel for next exercise You solve the exercises (guiding solution available) Physical lecture: Your questions / problems / Homepage... Very exercise based • Little reading, lots of “hands on” computer work • Exam on computers, (like exercises) • Hence: Excel-routine raises your grade. 5 / 17 2 Plan for the Lessons • Lesson 1: – Lec 1.1 (now) (physical!) – Lec 1.2 Excel functionality (online) • Lesson 2: – Lec 2.1 Financial and statistical issues (online) – Lec 2.2 Introduction to VBA...

Words: 851 - Pages: 4

Premium Essay

Strategic Management

...communicating to interested parties. We tried to follow all the rules required for this report and maintained a particular standard. We tried to make a concise report which will enhance the knowledge about the product as well as the company without sparing much time. We cordially request you to evaluate the report and we hope that you will have the pleasure to read the whole report and also will get the same excitement as we got while doing the report. Yours Sincerely, __________________ ___________________ __________________ Mark Anupom Mollick Aslam Hossain Sadnima Amir Roll: 26 Roll: 27 Roll: 28 Group: 04 MBA-49D Table of Content Content Name | Page | 1.1 Introduction | 1 | 1.2 Objective of the Study | 1 | 1.3 Methodology of the Study | 1 | 1.4 Findings of the Study | 2 | 1.5 Limitations of the Study | 2 | 2.1 Background of the Company | 3 | 2.2 Product Description | 3 | 2.3 Brand’s Core Competitors | 6 | 2.4 Price Breakdown of the product | 7 | 2.5 Circulation throughout the Country | 9 | 2.6 Advertisement and Promotional Programs |...

Words: 4769 - Pages: 20

Premium Essay

Tim Hortons

...TIM HORTONS MARKETING PLAN ASSIGNMENT 3 ATIF HAMEED ERP: 10568 MBA-1, Morning Business Definition: When Tim Hortons comes to mind, a dark brown colored bean coffee strikes us instantly. Tim Horton broadly caters hot beverages and fast food items for its valued customers. But still coffee and donuts are its bull eyes. It has built its place in consumers mind and heart through its premier products i.e. coffee and donuts. With the passage of time and changing trends globally, it has expended its business into baking, catering and fast dinning to enhance its presence strongly and increase market share. As a result, Tim Hortons has impressively implemented the idea of “different but unique experiences under one roof. While doing so, it has evolved its vision and mission statement without ignoring its loyal consumers which are the important stakeholders as it still strongly associates o itself to its premier products. Karachi: Pakistan is an emerging market for coffee players. It has most of the things to attract brands like Tim Hortons to Pakistan. Country with sixth most populous nation, middle class is expanding, youth rate in population is one of the highest in the world, people are embracing western lifestyle, and buying power is improving. Therefore, Pakistan is a good market to jump into and grow international presence. Karachi, being the biggest metropolitan of Pakistan, provides perfect platform to launch Tim Hortons in the country. It has already established the...

Words: 2605 - Pages: 11

Premium Essay

Business Analysis

...adopted new listening habits? Publishers, Internet bookstores, and companies that manufacture eReaders have high expectations for the digital future of the book industry. A new generation of eReaders may, at last, achieve the long-awaited breakthrough that lures consumers away from paper and ink. In the United States, Amazon has revolutionized the market by producing an eReader that is easy to use and making it easy for customers to purchase a wide variety of books at competitive prices. While some people herald the advent of digital reader technology as an opportunity to open new target markets and create customers, others mourn the end of traditional books and doubt the industry will be able to retain control over pricing and content. • Who will purchase eReaders? Will they be designed to appeal to a broad group of customers or only to those who have a high degree of comfort with technology? Will people who read once in a while want to buy an eReader, or will they only be purchased by the small group of customers who buy and read a high volume of books? • Will publishers be able to use eBooks and eReaders to extend the market for books in general, creating a wider audience? • Will publishers ever move to an alldigital model and abandon printed books? This research is complemented by more than 40 interviews with experts and senior executives of reader manufacturers, a wide range...

Words: 23824 - Pages: 96

Premium Essay

Marketing

...UNIT-I LESSON 1 AN INTRODUCTION TO MARKETING MANAGEMENT CONTENTS 1.0 Aims and Objectives 1.1 Introduction 1.2 Marketing Concept 1.2.1 The Production Concept 1.2.2 The Selling Concept 1.2.3 The Marketing Concept 1.2.4 Relationship Marketing 1.2.5 The Societal Marketing Concept 1.2.6 Holistic Marketing Approach 1.2.7 Marketing Mix 1.2.8 Product (Customer Benefit) 1.2.9 Promotion (Marketing Communications) 1.2.10 Distribution (Customer Convenience) 1.2.11 Price (Customer Cost) 1.2.12 The Marketing Mix Coherency 1.2.13 The Marketing Mix Dynamics 1.3 Defining and Delivering Customer Value and Satisfaction 1.3.1 Customer Value and Satisfaction 1.4 Value Chain 1.5 Benchmarking 1.6 Delivery Network 1.7 Let us Sum up 1.8 Lesson-end Activity 1.9 Keywords 1.10 Questions for Discussion 1.11 Suggested Readings Marketing Management 1.0 AIMS AND OBJECTIVES In this lesson we shall discuss about–An introduction to Marketing Management. After going through this lesson you will be able to: (i) (ii) Understand Marketing Concept and customer value and satisfaction. Describe Value Chain and Benchmarking. (iii) Convey delivery network. 1.1 INTRODUCTION While a product could represent many different things, a good, however, is a tangible object that can be seen and touched. A service, while a good and in sharp contrast to it, represents an intangible product that may involve human or mechanical effort in its delivery. Services are being consumed increasingly by personal and organisational...

Words: 7116 - Pages: 29

Premium Essay

Global Marketing

...Module Handbook International Marketing Table of Contents 1. General 1 2. Overview of Module and Module Descriptor 1 3. Assessment Criteria and Marking Guidelines 3 3.1 Assessment Timetable 4 4. Schedule of Work / Topics 5 5. Communication 6 6. Support for Your Learning 7 6.1 Specific Support Materials for Module 8 7. Developing Good Academic Practice 10 8. Student Charter 12 9. Complaints and Appeals 12 10. Module Feedback from Previous Students 13 General General guidance and information on the university experience for all students can be found in the Student Handbook, which is available online via http://www.bradford.ac.uk/study/new-students/. Overview of Module and Module Descriptor This document outlines key information concerning the UG International Marketing in 20012/13. Contents of the document are subject to minor changes. Updated information will be posted on Blackboard as required. Please make sure that you regularly log onto Blackboard. The increasing opportunities and threats placed by the growth in international business makes the skills of the international marketer critical for business survival. This is true no matter what the business sector or type or size of firm. Even firms not directly involved with active international marketing are likely to be influenced by factors in the international marketing environment, if only in the form of increased international competition. This module examines core issues in international...

Words: 4353 - Pages: 18

Premium Essay

Marketing Assignment

...| Marketing Strategy | Pantene- Colour Therapy | | | | | Contents 1.0 Situation Analysis/Current Marketing Mix 2 1.1 Current Product 2 1.2 Current Pricing 3 1.3 Current Distribution 4 1.4 Current Promotion 5 2.0 Segmentation Theory 5 2.1 Define and Explain Segmentation 6 2.2 Benefits of using Segmentation 6 3.0 Target market Segmentation 7 3.1 Geographic Segmentation 7 3.2 Demographic Segmentation 7 3.3 Physiographic Segmentation 8 3.4Behavioural Segmentation 8 4.0 Target Market Collage 9 5.0 Completion of Discussion/Rationale of the Target Market Collage 10 6.0 Reference List 10 1.0 Situation Analysis/Current Marketing Mix 1.1 Current Product The colour therapy product is enriched with Pro-V Complex and is designed with the objective of providing improved, protected and revived colour treated hair. The current product comes in three variants namely shampoo, conditioner and spray conditioner. It has been clearly mentioned in all the three products that they are inter related to each other and for best results the customer must make use of all the three in a series of steps to be followed by the user. The booklet found inside the package of the product explains how one should treat their colored hair i.e. first head wash using the shampoo and then conditioner followed up by the spray conditioner. Thus, three products are being targeted to be sold at once the potential customer decides to purchase the product (Pantene 2011)...

Words: 2951 - Pages: 12