Dynamic pricing has always been an interesting topic in one of our favorites techniques, Touristologists! I am talking about Yield Management, of course!
We can define Yield Management as a set of Strategies and Tactics aiming to achieve two objectives
1) To seduce Tourists to make a reservation “today” that we have a low occupancy.
2) To seduce Tourists to make a reservation when we have a low “booking pace”
As you remember, the motto of Yield Management commands us to offer: The right service, to the right customer, at the right time, through the right channel.. for the right price AND PROFIT (WE, Touristologistly, add in OUR classes)!!!
The right price? Usually, you customize the price based on the demand, the actions of your "compset" (your competitors in Yield Management’s lingo!), the occupancy level... BUT you also can customize the price based on the desires of the customer and the rights that He/She has.
How do you know his/her desires? How do you know if He/She has the rights?
You need to have access to this information in Real-Time. Welcome to stream processing!
The right price? Usually, you customize the price based on the demand, the actions of your "compset" (your competitors in Yield Management’s lingo!), the occupancy level... BUT you also can customize the price based on the desires of the customer and the rights that He/She has.
How do you know his/her desires? How do you know if He/She has the rights?
You need to have access to this information in Real-Time. Welcome to stream processing!
You need to be able to get this information for every customer in Real-Time. Welcome to AI providing Scalability.
You need to TRUST this information. Welcome to Blockchain!
In order to achieve this, you can use the flavor of the month...NFT.
We talked about NFT here.
We explained that NFT allows to customize a token (digital money) based on the desires of “this” person (Tourist) and his/her rights.
Let’s put some examples, shall we?
You have a price for a room (or seat in your airline company or restaurant or...) based on forecasted occupancy, size, situation....
Let’s customize it base on the desires and rights of the Tourist.
Example 1: If a Businessmen is at your Hotel and you know that He is missing his son, you can seduce him to stay longer including in the price access to a cinema where are playing the favorite movie of the son or a concert or the presentation of a book in a library near to the Hotel or...the new, new Game combining AR & VR that Tourists can play in the city of the Hotel and other people (members of the same community, relatives, coworkers...) in anyplace around the globe.
What about to play a little bit of Pro-Am and “Help Them to Help You” allowing the son to try to create a GROUP in YOUR platform which will make possible to customize a service. For instance, a short meeting with the Director, the actor/actress, the writer of the movie... the designers of the game, the developers, the product managers, the experts in Artificial Intelligence...This meeting could be part of a seminar of one University. How do you know if the son has the knowledge to participate in it? How do you know the knowledge and experience of the teachers giving the seminar? Blockchain!
Example 2: If one Tourists books the room and ALSO want to have a job interview in order to work in this Hotel OR in any member of the chain of value (OTA, CRS, SnS, Airline company...). You can customize what is included in the price for THIS Tourists paying with THIS NFT!
You can offer specific Up-selling: Healthy food and Beverage in order to be in the best mood and energy for the job interview.
You can offer specific Cross-selling: A course in a near University to improve/get some skills related to the job...)
What about the rights? Thanks to Blockchain we know that He/She has “this” studies and professional experience.
By the way, both examples fit into the definition of OPACITY (Make the price difficult to compare adding IMPORTANT things for THIS Tourist into the price.)
You need to TRUST this information. Welcome to Blockchain!
In order to achieve this, you can use the flavor of the month...NFT.
We talked about NFT here.
We explained that NFT allows to customize a token (digital money) based on the desires of “this” person (Tourist) and his/her rights.
Let’s put some examples, shall we?
You have a price for a room (or seat in your airline company or restaurant or...) based on forecasted occupancy, size, situation....
Let’s customize it base on the desires and rights of the Tourist.
Example 1: If a Businessmen is at your Hotel and you know that He is missing his son, you can seduce him to stay longer including in the price access to a cinema where are playing the favorite movie of the son or a concert or the presentation of a book in a library near to the Hotel or...the new, new Game combining AR & VR that Tourists can play in the city of the Hotel and other people (members of the same community, relatives, coworkers...) in anyplace around the globe.
What about to play a little bit of Pro-Am and “Help Them to Help You” allowing the son to try to create a GROUP in YOUR platform which will make possible to customize a service. For instance, a short meeting with the Director, the actor/actress, the writer of the movie... the designers of the game, the developers, the product managers, the experts in Artificial Intelligence...This meeting could be part of a seminar of one University. How do you know if the son has the knowledge to participate in it? How do you know the knowledge and experience of the teachers giving the seminar? Blockchain!
Example 2: If one Tourists books the room and ALSO want to have a job interview in order to work in this Hotel OR in any member of the chain of value (OTA, CRS, SnS, Airline company...). You can customize what is included in the price for THIS Tourists paying with THIS NFT!
You can offer specific Up-selling: Healthy food and Beverage in order to be in the best mood and energy for the job interview.
You can offer specific Cross-selling: A course in a near University to improve/get some skills related to the job...)
What about the rights? Thanks to Blockchain we know that He/She has “this” studies and professional experience.
By the way, both examples fit into the definition of OPACITY (Make the price difficult to compare adding IMPORTANT things for THIS Tourist into the price.)
Not only that, in both examples we can also add another feature of NFT. The possibility of sharing the ownership of an asset. It could be a percentage of the revenues of OUR Tourism enterprise! So, every time that the Tourists makes a reservation or seduce somebody to appear in OUR enterprise, automatically gets a percentage of profits in tokens format.
All trustable, all fast, all in real-time!
I’m sure, that you can provide more examples, future of Touristology! Remember, we only can be sure that we understand any theory if we can provide original examples!
Feel free to add them in the comments below. At the end of the day, this is OUR blog. The blog of the ones who fell in love with the Science of Travel... Touristology!
- But...Jordi!
Seminars to be a Game developer?
Job interviews to work in my Hotel OR any other member of the chain of value?
I just want to sell rooms!!!
- Forget about your rooms!
Focus on seduce YOUR Tourists! Listen to your inner Touristology’s voice!
Let’s clarify this once and for all… Your business is NOT selling rooms or F&B… Your business is to satisfy your customer, providing what they need, when they need it, in the way they need it!
Focus on creating synergies between our beloved sector and any sector of your Tourism Destination. Focus on become a Touristologists!!!
All trustable, all fast, all in real-time!
I’m sure, that you can provide more examples, future of Touristology! Remember, we only can be sure that we understand any theory if we can provide original examples!
Feel free to add them in the comments below. At the end of the day, this is OUR blog. The blog of the ones who fell in love with the Science of Travel... Touristology!
- But...Jordi!
Seminars to be a Game developer?
Job interviews to work in my Hotel OR any other member of the chain of value?
I just want to sell rooms!!!
- Forget about your rooms!
Focus on seduce YOUR Tourists! Listen to your inner Touristology’s voice!
Let’s clarify this once and for all… Your business is NOT selling rooms or F&B… Your business is to satisfy your customer, providing what they need, when they need it, in the way they need it!
Focus on creating synergies between our beloved sector and any sector of your Tourism Destination. Focus on become a Touristologists!!!
I love mixing together Touristology and new Technologies! I love to build the best minds in the best sector ever!!!
dynamic pricing and revenue management
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