Revenue Strategy: The High Cost of Ignoring Value

The High Cost of Ignoring Value

Tim PeterPresident, Tim Peter & Associates

Sold for $28,000

Top search term prior to booking?“Price”

So, here’s a question:Why?

Because we’ve trained them

10perc

ent

Price really only matters for value

“...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

What do guests say you do well?

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

Equivalent of extra 0.5% ADR YOY

Essentially no chance of random occurrence

$25,000 in GRR for $5,000 spend

Thank You

Web: timpeter.com

Phone: 201-305-0055

Email: tim@timpeter.com

Twitter: twitter.com/tcpeter

Google Data Studio

X