Attribute Based Pricing, Reaching TRevPAR Goals

Scott Schachter, CRME, Senior Account Manager Partner Services at Booking.com, HSMAI Rising Revenue Optimization Leaders Council member

Hotels are constantly seeking ways to enhance the booking experience for their guests, and one emerging trend is the use of Attribute-Based Pricing (ABP) to highlight property features and upsell ancillary services. However, there are challenges in implementing ABP, such as the need for technological advancements and integration with Property Management Systems (PMS) and Central Reservation Systems (CRS). The HSMAI Revenue Optimization Rising Leader Council recently gathered and we discussed the question: As all aspects of properties are being considered when defining “success”, how can we best optimize revenue and experience?  

Top 3 Takeaways: 

  1. Utilizing ABP for experience-based add-ons during the booking process, such as recreational activities, can enhance the guest’s stay and create memorable experiences. 
  2. Encouraging guests to match both their right room and relevant attributes to their needs will lead to increased conversions and guest satisfaction.   
  3. Finding the right balance between pricing and guest preferences is crucial in implementing ABP to avoid deterring potential bookings, and collaborative efforts between hotels, vendors, and technology providers are needed to drive advancements in ABP.  

One thing we all agreed on is that while we work towards a better place in terms of implementing ABP, it’s important to prioritize the opportunities.  

Further Reading:  

 

Categories: Revenue Management
Insight Type: Articles