Loading ...In 2007, over one-third of all hotel bookings will be generated from the Internet in North America. This dramatic channel shift has created unprecedented price transparency and price-driven marketing in hospitality, thus further commoditizing the hotel product. How are hoteliers handling the increased commoditization of the hotel product, especially in the current rate parity and best rate guarantee environment? The ideas discussed in this article can help hoteliers de-commoditize their product offerings and provide a unique value proposition to the hotel customer.
The Value vs. Price discussion affects most industries and the resounding conclusion has always been that consumers choose value. The unique value proposition intertwined in the product offering, value of service, honesty of price, and the additional touch of value fights commoditization. Competing on price and price alone, particularly in the service industry is a last ditch effort. Nowhere is this more important than in the hospitality industry where pricing has become so competitive.
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