This article shows how the travel industry can choose to customize their prices, why they should do it and how they can do it.
The article is not considering the whole travel industry but is talking about more the airlines and the price differences between a frequent customer and a customer who will choose the airline because of the good deal. The airlines are "defending" themselves by saying that it is normal to offer different rates to different customers according to how often the customers use the airline. I think that the article should also talk about the low cost airlines who really customize their prices or even a large number of hotels.
Air Asia (for instance) a low cost airline really customize their prices according to the customer characteristics: you can add anything like a second meal, have a bigger seat, fast & first boarding. So each customer can customize their prices. It is the same for Accor or Club Med who show online different prices with different options and you can choose to pay the price that you want according to the risk that the customers want to take. (refundable or modify...)
Actually, the travel industry already customize their prices and let the customers know about it. However it will be really unfair to "defraud" the customers and let them pay a higher price for those who book through other websites like they explain in the article.
I really think that every customer understand how the prices can be customized - the travel industry and the customers can find their advantage and make it profitable for them.
The revenue management is already a form of customized price. Each company within the travel industry customize their prices by changing the prices according to the seasons, the day of the week, the event and so on...Customized prices are already in the customs but depends how fair are the company by using it.
Link to the article
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I believe customised prices can be very tricky for consumers. Indeed, some people may not understand the variations of prices as they do not automatically read the conditions of sales involved, so they book the cheapest price without reading the sales policy. I believe their is a duty for the company to be very clear with these sales conditions, as they are not always very well explained. On the other hand, there is a duty for the guest to read these sales conditions.
RépondreSupprimerI agree with the fact that airline companies can sell additional services such as additional meal, or a bigger seat. I encourage upselling as long as the guests are willing to pay for these services. We can already find this time of upselling in the hospitality industry. Some hotels have added the dynamic packaging to their booking engines, to encourage consumers to book additional services while booking the guest room.
I believe that customizing prices is a good thing for both, customers and industries. For instance, as a customer, to check different prices for a flight, will push me to travel.
RépondreSupprimerIf I know that the price will be 200€ all the time, I won't buy ticket, otherwise if one day the price is 110€, it is a great deal and will buy it.
Moreover, I like what low cost do regarding customer preferences.
Some people need second meal or bigger seat that I don't need personally, I am glad to pay for what I prefer.
At the end, I encourage up-selling, some people are willing to pay, why industries will deprive their selves?