STAAH Blog
  • Home
  • MANAGEMENT
    • Why Every Hotel Needs a Channel Manager…

      Program Konsorsium Hotel: Bagaimana, Mengapa & Berapa…

      โปรแกรม Hotel Consortia: อย่างไร ทําไม และค่าใช้จ่ายเท่าไหร่?

      ตัวจัดการช่องทาง Channel Manager คืออะไร และทำไมผู้ให้บริการที่พักจึงจำเป็นต้องมี?

      The Top Traits of Exceptional Hospitality Professionals

  • Marketing
    • Smart Hotel Distribution: What Every Hotelier Needs…

      The Ultimate Guide to Turning Negative Reviews…

      6 Social Media Trends Hoteliers Must Leverage…

      ไอเดียโพสต์โซเชียลมีเดียที่กําลังมาแรงสําหรับโรงแรมในปี 2025

      Xu Hướng Nội Dung Mạng Xã Hội…

  • Tips & Trends
    • Smart Hotel Distribution: What Every Hotelier Needs…

      Maximizing Hotel Revenue: Advanced Channel Manager Strategies…

      The OTA Balancing Act: How a Channel…

      Tapping into Wellness Tourism: A Hotelier’s Guide

      Overcoming common challenges in channel management for…

  • News
    • Cloudbeds and STAAH partner to enhance channel…

      STAAH Achieves Prestigious Seamless Product Badge from…

      STAAH Product Updates You Can’t Miss –…

      Thoughtful Thursday – Reporting for Properties: Converting…

      Thoughtful Thursday – Matrix – Revenue Control…

  • Success Stories
    • The Komu Boosts Direct Revenue by 25%…

      Online Revenue Jumps 50% for Mangkuluhur Residences…

      23% more online bookings for Vivatel Kuala…

      STAAH boosts Indonesian resort’s direct bookings by…

      Nova Express Pattaya expands online visibility with…

  • Resources
    • All BLAAH BLAAH @STAAH Connectivity News e-Books Events Podcast Quiz Testimonials Webinars

      Connect with Expedia – Expand Your Reach…

      Alexa+ could earn “top-of-the-funnel” spot in travel…

      STAAH & Hotelbeds: A Powerful Partnership Driving…

      STAAH’s new eBook to guide hoteliers through…

      BLAAH BLAAH @STAAH with Captain Mihir Deepak…

      BLAAH BLAAH @STAAH with Dia Mirza

      BLAAH BLAAH @STAAH with Avijit Arya and…

      BLAAH BLAAH @STAAH with Mauro Risch

      Connect with Expedia – Expand Your Reach…

      Alexa+ could earn “top-of-the-funnel” spot in travel…

      STAAH & Hotelbeds: A Powerful Partnership Driving…

      EMPOWERING CHANNEL PARTNERS: THE POWER OF CONTENT…

      STAAH’s new eBook to guide hoteliers through…

      STAAH ReviewMinder Playbook

      STAAH GDS Playbook

      The Expert Guide to Drive More Direct…

      BLAAH BLAAH @STAAH with Suwamana Wahyu Putra…

      BLAAH BLAAH @STAAH With Matthias Dybing And…

      BLAAH BLAAH @STAAH with Vikramjit Singh and…

      BLAAH BLAAH @STAAH with Suhail Kannampilly and…

      STAAH Weekly Hospitality Quiz: 17 January

      STAAH Weekly Hospitality Quiz: 10 January

      STAAH Weekly Hospitality Quiz: 20 December

      STAAH Weekly Hospitality Quiz: 13 December

      The Domain Hotel and Spa, Bahrain

      Pramana Experience (Indonesia)

      Merusaka Nusa Dua, Bali (Indonesia)

      Acappella Suite Hotel (Malaysia):

      From Search to Stay: Maximize your Visibility…

      STAAH Webinar: From Search to Stay: Maximize…

      STAAH Webinar: Manage Revenue Mastery: How to…

      STAAH Webinar: Manage Revenue Mastery: How to…

  • Free Demo
LATEST
Smart Hotel Distribution: What Every Hotelier Needs to...
Cloudbeds and STAAH partner to enhance channel management for...
STAAH Achieves Prestigious Seamless Product Badge from Booking.com
The Komu Boosts Direct Revenue by 25% with...
STAAH Product Updates You Can’t Miss – April...

STAAH Blog

  • Home
  • MANAGEMENT
    • Why Every Hotel Needs a Channel Manager…

      Program Konsorsium Hotel: Bagaimana, Mengapa & Berapa…

      โปรแกรม Hotel Consortia: อย่างไร ทําไม และค่าใช้จ่ายเท่าไหร่?

      ตัวจัดการช่องทาง Channel Manager คืออะไร และทำไมผู้ให้บริการที่พักจึงจำเป็นต้องมี?

      The Top Traits of Exceptional Hospitality Professionals

  • Marketing
    • Smart Hotel Distribution: What Every Hotelier Needs…

      The Ultimate Guide to Turning Negative Reviews…

      6 Social Media Trends Hoteliers Must Leverage…

      ไอเดียโพสต์โซเชียลมีเดียที่กําลังมาแรงสําหรับโรงแรมในปี 2025

      Xu Hướng Nội Dung Mạng Xã Hội…

  • Tips & Trends
    • Smart Hotel Distribution: What Every Hotelier Needs…

      Maximizing Hotel Revenue: Advanced Channel Manager Strategies…

      The OTA Balancing Act: How a Channel…

      Tapping into Wellness Tourism: A Hotelier’s Guide

      Overcoming common challenges in channel management for…

  • News
    • Cloudbeds and STAAH partner to enhance channel…

      STAAH Achieves Prestigious Seamless Product Badge from…

      STAAH Product Updates You Can’t Miss –…

      Thoughtful Thursday – Reporting for Properties: Converting…

      Thoughtful Thursday – Matrix – Revenue Control…

  • Success Stories
    • The Komu Boosts Direct Revenue by 25%…

      Online Revenue Jumps 50% for Mangkuluhur Residences…

      23% more online bookings for Vivatel Kuala…

      STAAH boosts Indonesian resort’s direct bookings by…

      Nova Express Pattaya expands online visibility with…

  • Resources
    • All BLAAH BLAAH @STAAH Connectivity News e-Books Events Podcast Quiz Testimonials Webinars

      Connect with Expedia – Expand Your Reach…

      Alexa+ could earn “top-of-the-funnel” spot in travel…

      STAAH & Hotelbeds: A Powerful Partnership Driving…

      STAAH’s new eBook to guide hoteliers through…

      BLAAH BLAAH @STAAH with Captain Mihir Deepak…

      BLAAH BLAAH @STAAH with Dia Mirza

      BLAAH BLAAH @STAAH with Avijit Arya and…

      BLAAH BLAAH @STAAH with Mauro Risch

      Connect with Expedia – Expand Your Reach…

      Alexa+ could earn “top-of-the-funnel” spot in travel…

      STAAH & Hotelbeds: A Powerful Partnership Driving…

      EMPOWERING CHANNEL PARTNERS: THE POWER OF CONTENT…

      STAAH’s new eBook to guide hoteliers through…

      STAAH ReviewMinder Playbook

      STAAH GDS Playbook

      The Expert Guide to Drive More Direct…

      BLAAH BLAAH @STAAH with Suwamana Wahyu Putra…

      BLAAH BLAAH @STAAH With Matthias Dybing And…

      BLAAH BLAAH @STAAH with Vikramjit Singh and…

      BLAAH BLAAH @STAAH with Suhail Kannampilly and…

      STAAH Weekly Hospitality Quiz: 17 January

      STAAH Weekly Hospitality Quiz: 10 January

      STAAH Weekly Hospitality Quiz: 20 December

      STAAH Weekly Hospitality Quiz: 13 December

      The Domain Hotel and Spa, Bahrain

      Pramana Experience (Indonesia)

      Merusaka Nusa Dua, Bali (Indonesia)

      Acappella Suite Hotel (Malaysia):

      From Search to Stay: Maximize your Visibility…

      STAAH Webinar: From Search to Stay: Maximize…

      STAAH Webinar: Manage Revenue Mastery: How to…

      STAAH Webinar: Manage Revenue Mastery: How to…

  • Free Demo

Value based Pricing: Why is it important for your property

26 July 2019
Value-Based Pricing

Setting a price – customers are willing to pay, based on the perceived value to them, is one of the highly recommended pricing techniques. Revenue Management expert and Founding Director of ARMA, Melissa Kalan helps understand this technique and offers valuable tips on executing this strategy.


We discussed in our recent article about how room rates remain as the top driver in the booking decision making. Brings up the next question. Are you matching up to the perceived value against your price? Here are tips from Revenue Management expert Melissa Kalan:

I was recently conducting some research into hotel websites, evaluating their offerings across various distribution platforms for a range of brands and accommodation types.  The number one thing that stood out was the inconsistency in the value offering to customers and the communication of value in comparison to other third-party booking channels.

For example, on many occasions I found the terms and conditions via direct booking channels to be more restrictive, this extended not only to booking conditions but also room inclusions for the price being quoted such as the availability of Wi-Fi.  Similarly, I found a large majority of free-to-sign-up direct property loyalty programs to at times be more expensive than other loyalty offerings the customer could book.

Whilst accommodation providers attempt to secure bookings via direct channels as part of a balanced approach to distribution strategy, I was left puzzled after my research; however, the average customer is not. They are left with a very simple choice as to which offer is providing the best value for price relationship or “perceived value”. What channel this is, is of no concern to the customer…they just want the best deal right?

Similarly, with loyalty programs, it is just as important the customer perceives the “value” of the program to be of benefit.  Let’s face it, customers have an overwhelming amount of programs they can join, often with limited time to try and utilise many of the “benefits”.

I recently found myself with a group of friends that were part of a large chain’s loyalty program who were deciding to arrange a last-minute dinner that evening.  They logged-on to their member portal to book a restaurant and all were unavailable.

Given this was a Tuesday evening in a city location; I suggested they phone directly and on doing so were immediately offered a table. On arrival, the venue was less than a quarter full and remained this way for our entire evening. My friends were pleased they got to use a “benefit” of their membership; however, they were surprised no online bookings were available.  Had I not suggested they contact the restaurant, they would have assumed all tables were fully booked and they would have missed the opportunity to utilise their loyalty benefit. I sensed they felt slightly hoodwinked….

Knowing what your customers value and how they perceive the “value for price relationship” is very important to convert and retain your customers. “Value” can be offered and communicated in many different ways and value perception also includes the facilitation of the “experience”.

A key revenue management strategy is to measure what our customers value and capture their willingness to pay through a range of targeted offerings made strategically available at the right time.

Value based Pricing

So, let’s take a look at some key properties of “Value” –

  1. Value is what matters to the customer – not what the property assumes to be of value
  2. Value is perceived and subjective – the value for price relationship is different across customer groups depending on their needs, wants and purpose of travel
  3. Value is what the customer is buying
  4. When the value is absent, unclear, confusing and/or takes time to decipher, price perception becomes unclear to the customer.
  5. The absence of “value” and/or delivery of “value” can erode reputation and profits

Take a moment to review all your terms and conditions, policies and product offerings. Try and get someone that is not in the industry to provide feedback on the perceived value of your product offerings amongst your competitive-set and across distribution platforms, set a team challenge to brainstorm value add offerings for your guests.

The customer will pay for value – some key value drivers for customers are things like quality, reputation, reliability, a sense of trust and security.  Past experiences (good and bad) become a point of reference from which they measure future value as well as competitor offerings and how they compare to your product. This also extends to your loyalty programs (from both an offerings perspective and in execution).

“Nothing is more expensive than a missed opportunity to sell value” – Melissa Kalan


Melissa KalanMelissa Kalan is the founder of Australian Revenue Management Association, a provider of accredited revenue management training (via Torrens University Australia) and an online foundations course via the ARMA Academy. STAAH customers receive access to the first unit of the ARMA revenue management foundations course complimentary.

Value based Pricing: Why is it important for your property was last modified: October 26th, 2022 by staah

Related Articles

Preparing for Recovery – Advice and Insights...

9 Things Your Channel Manager Reports Tell...

What you need to know about Airbnb’s...

ตัวจัดการช่องทาง Channel Manager คืออะไร และทำไมผู้ให้บริการที่พักจึงจำเป็นต้องมี?

STAAH Products

Channel Manager
Booking Engine
Instantsite Website
Gift Voucher Engine
Review Minder


QUICK LINKS
  • About
  • Blog
  • News
  • Resellers
  • Careers
  • Contact Us
  • Login
  • Help Centre
  • Refer a friend, get NZ $300
PRODUCTS
  • Channel Manager
  • Booking Engine
  • ReviewMinder
  • Vouchers
  • Global Distribution Systems (GDS)
  • InstantWebsite
Solutions
  • Independent Properties
  • Group Properties
INTEGRATIONS
  • All Integrations
  • OTAs
  • PMS
  • Wholesalers
  • PG
  • GDS
  • Metasearch Engines
  • Booking Engines & Conversion Drivers
  • Upselling, CRM & Marketing Partners
  • Su API
CONTACT

Sales Enquiries:
sales@staah.com

Customer Support:
support@staah.com

Billing:
accounts@staah.com

Careers:
people@staah.com

STAAH Limited. 2025 © All Rights Reserved. | Support | Terms | Cookie Policy | Privacy Policy