Selling based on quality vs price, the eternal debate in this digital parity world. Demand-based pricing isn't practiced enough in the hotel industry.
Dropping rates on a single channel, such as Expedia or Booking.com, in the middle of the night in the U.S. in an attempt to capture international demand might actually prove more harmful than beneficial, according to experts.
Luring demand from regions such as Europe and the Middle East is a driving force behind the practice, which calls into question the age-old debate of price elasticity—that is, whether decreasing prices increases demand.
Late-night rate manipulation might at first appear lucrative, especially considering Expedia’s exposure to more than 50 million customers in almost 70 countries around the globe.
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