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Understanding Your Customers' Price Sensitivity and Optimizing Your Pricing Strategy in the Hospitality Industry

Understanding Your Customers' Price Sensitivity and Optimizing Your Pricing Strategy in the Hospitality Industry

Setting the right price for your hospitality services is key to success. To do this, you must understand your customers' price sensitivity—how price influences their decisions. Are they looking for the cheapest option, or do they value exceptional service and a warm welcome? Create a detailed customer avatar to guide your pricing strategy. Use market research, competitor analysis, and tools like Hospitality Data Insights (HDI) to gather valuable data. By knowing your guests and their expectations, you can set prices that maximize satisfaction and profitability, propelling your business.