revenue strategy: the high cost of ignoring value
TRANSCRIPT
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: [email protected]
Twitter: twitter.com/tcpeter
Google Data Studio
X