Revenue Strategy: The High Cost of Ignoring Value
Transcript of Revenue Strategy: The High Cost of Ignoring Value
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The High Cost of Ignoring Value
Tim PeterPresident, Tim Peter & Associates
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Sold for $28,000
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Top search term prior to booking?“Price”
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So, here’s a question:Why?
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Because we’ve trained them
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10perc
ent
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Price really only matters for value
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“...humans rarely choose things in absolute terms. We don’t have an internal value meter that tells us how much things are worth. Rather, we focus on the relative advantage of one thing over another, and estimate value accordingly.” –Dan Ariely
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What do guests say you do well?
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Price anchoring and up-sell A/B test
$189 24-Hour Dining Package• Prepaid parking• Breakfast• Dinner in restaurant
Tested price anchored up-sell of amenities packages in confirmation page
and pre-arrival email:$49 Morning Dining Package• Prepaid parking• Breakfast
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Equivalent of extra 0.5% ADR YOY
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Essentially no chance of random occurrence
$25,000 in GRR for $5,000 spend
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Thank You
Web: timpeter.com
Phone: 201-305-0055
Email: [email protected]
Twitter: twitter.com/tcpeter
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Google Data Studio
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