Today's Revenue Management thought:-

Dynamic Pricing and the Risk of Losing Trust

Dynamic pricing—adjusting prices based on demand, competition, or customer behaviour—has become increasingly popular. 

While this approach can optimise revenue, it also poses a risk of eroding trust if not implemented transparently. Customers who discover they are paying more than others for the same room may feel exploited, which can damage their trust in the hotel brand. To mitigate this, hotels need to be transparent about why prices fluctuate and ensure customers understand the benefits they are receiving. 

Hotels that can balance the flexibility of dynamic pricing with clear communication are more likely to maintain trust and avoid alienating their customer base.

Have a profitable week !

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