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when to use proactive and reactive solutions (booking.com blog)

By 03/09/2020No Comments

Whether you’re planning ahead or need a quick occupancy boost, our pricing solutions can help. Hielke van Trommel, Director of Product Marketing, explains the difference between our proactive and reactive options – and how they can help you create an optimal pricing strategy

Pricing has always been top of mind for guests and partners. We have our own promise to ensure customers always receive a great price and to provide them with prices that are transparent, compelling and competitive.

But what about our partners’ pricing strategies? How can they best decide how to set prices? To offer more simplicity and clarity around pricing, we’ve created a portfolio framework of pricing solutions to help you establish a compelling strategy. It starts, as you might imagine, with a good foundation.

Pursuing an optimal rate plan

Without having the right base structure, you’re not going to get your fair share of demand on our platform. This pricing foundation includes an Early Booker rate, a Non-Refundable rate and a Fully Flexible rate. These three combined are what we call an optimal rate plan. On average, partners who have all three rate plans active receive 9% fewer cancellations and see an 11% increase in visibility, along with a 5% increase in bookings.

But then you need to position your prices for each of those different rates in an optimal way to make sure you get the most business – and generate even more demand. This is where playing with prices can help. I encourage you to examine your many options in the pricing portfolio, which you can think of as having two main branches: proactive and reactive solutions.

Proactive, always-on pricing solutions

The key detail to understand about proactive solutions is that they help you prepare for the future. They’re designed to address long-term occupancy needs and reach valuable customer segments on an ongoing basis.

Some of these proactive tools are always-on solutions that you can set up to incrementally gain more and more share of the market, like the Genius and Preferred Partner programmes. These can help you reach a very wide range of bookers. For example, on average Genius partners get up to 40% more search result views, receive up to 18% more bookings and bring in up to 17% more revenue. Preferred Partners on average receive up to 65% more page views and get up to 40% more bookings. Both come at a higher cost but can be highly effective at driving conversion and outperforming the competition.


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