1. Review Day 1 Reservation price versus reference price Pricing Audit 12 steps to better pricing Future Pricing Issues (coming together RM and CRM, importance of pricing, understanding buyer behavior, dynamic packaging, group RM) Ways to change price

2. Review Day 1 Two types of pricing strategies: cost based/margin and value pricing Influence of price decrease on additional units that need to be sold Types of value RATER system to create perceptions of value Types of pricing strategies (skim, penetration, neutral, and match)

3. Review Day 1 What is RM and how different from strategic pricing Price customization and why RM works Importance of fences Why we learned geometry in school

4. What To Do When We Get Home ①Undertake pricing audit with key staff members and examine opportunities to improve pricing ②Go through the 12 steps of better pricing and see if you can honestly answer the questions asked. Develop strategies for a way to address each issue

5. Example of Measuring Competitors Ownership Structure Financial Goals Who is RM and what is their background/ characteristics Promotions Run in Past Response to our promotions Rates and business by channel A B C D

6. What To Do When We Get Home ③Develop spreadsheet that clearly shows impact of price reduction on extra sales needed to make the same profit ④Honestly ask yourself how you currently price. Do this by listing the decisions you go through when taking a pricing action. Ask: what prompted the reaction? Are you a cost/margin pricing or value pricing approach? See if you can determine for main competitors.

7. What To Do When We Get Home ⑤Develop a list of your market segments. For each segment list pricing strategy you follow: skim, penetration, neutral, or match. List same information for competitors in each market. ⑥Take each department through RATER exercise. Goal is to evidence that you are providing quality service. Should not involve doing things that cost money (i.e., giving away things)

8. What To Do When We Get Home ⑦Paper your call center with average income of guests to change perception of reservations agents. ⑧For each market segment list: what are they actually buying, what do they value, are there ways to save them time so can charge more? ⑨Develop a list of what you are doing to help customer have an identification with the organization. Are customers aware of what you currently do? Can you get customers to pay more because of it

9. What To Do When We Get Home ⑩Take employees through price customization slides to explain why we price the way we do. 11What rate fences do you have in place? How are they enforced? How do employees break these fences? 12How many room/rate categories are possible in your hotel? How does the customer “see” these differences? 13Survey of customers to identify what they value

10. Review Day 2 Review of day 1 Price Sensitivity Pricing and Decision Making – Prospect Theory versus Economic Theory – Leads to framing (BA calendar, restaurant descriptions, quoting rates high to low, etc) – How reference prices are formed (context, wine example, bundle losses, past price paid, price differentials)

11. What To Do When We Get Home 14.Tape reservation calls 15.Review each call with reservation team to incorporate: RATER system, prospect theory (quote order, reason for visit, call to action, etc.) 16.Change reservations to “inside sales” 17.Examine how you package: it is not all about price, it may be about convenience

12. What To Do When We Get Home 18.Develop different “scripts” at reservation center to increase revenue. Test the different scripts using test-control group (think Venetian study). For instance, bundle internet access, movies, etc. 19.Examine possibility of calendar for quoting rates 20.Investigate undertaking study to determine consumers’ price sensitivity.