Price sensitivity refers to how responsive customers are to changes in the price of a product or service. Understanding price sensitivity is crucial for optimising pricing strategies and maximising revenue. Hotels usually set their rates in a revenue management system, adjusting them to demand, competition and seasonality. Price-sensitive guests often respond better to added value than to a lower rate: a package, a room upgrade or a spa treatment offered at the right moment. With chatlyn, hotels can segment guests from their profiles and send targeted WhatsApp offers, for example to guests arriving next week, while the team confirms each request.
What factors influence price sensitivity?
Price sensitivity is influenced by various factors such as the perceived value of the product or service, income levels, competition, brand reputation, and consumer preferences.
How can businesses manage price sensitivity effectively?
Businesses can manage price sensitivity effectively by conducting market research to understand customer preferences, offering segmented pricing strategies, providing discounts or promotions, enhancing product value through bundling or additional features, and continuously monitoring and adjusting prices based on market dynamics and customer feedback.
