Now that we have created our demand calendar, how do we start with pricing? We can develop a pricing grid that provides a range of rates that can be selected depending on the level of demand.
We call the price range BAR (Best Available Rate) levels. In your pricing grid you can include various BAR levels to offer at different levels of demand.
Below an example of a basic price grid:
When putting together your pricing grid take the following criteria into account:
Build your pricing points (BAR levels) as per expected level of demand (High to low for each season)
To determine what prices each BAR level should have it will help if you study at what rates you sell the most by channels, month and rate types. This way you will not miss out on any rate levels.
Revenue management
Goal and mission
Market segmentation
Pricing and rates
- Rate parity
- Price strategy
- Price segmentation
- Price grid
Budgets, forecasting and a demand calendar
Capacity allocation
Performance
IT / Analysis support tools
