The challenge for all meeting planners and event organizers is to sell the right rooms to the right customer at the right time for the right price. Planners and organizers need to obtain as many rooms as possible for the lowest rate in order to fill room blocks, while hotels need to ensure they are at the highest occupancy at the highest possible rate. The whitepaper explains how utilizing a dynamic flex pricing model, or rate yielding, is the best way to bridge this gap.
Experient and MGM Resorts International, in partnership with The Association of Equipment Manufacturers (AEM), have authorized and released the whitepaper “Modernize Your Room Block Pricing Model,” explaining why dynamic housing models work for the meetings and events industry.
The challenge for all meeting planners and event organizers is to sell the right rooms to the right customer at the right time for the right price. Planners and organizers need to obtain as many rooms as possible for the lowest rate in order to fill room blocks, while hotels need to ensure they are at the highest occupancy at the highest possible rate. The whitepaper explains how utilizing a dynamic flex pricing model, or rate yielding, is the best way to bridge this gap.
AEM’s CONEXPO-CON/AGG 2014, the largest show in North America for the construction industries, proved that a win-win can be achieved through the use of dynamic flex pricing. The results for AEM included greater revenue that could be used for show services, more inventory for longer time frames, additional inventory access, lower entry rates contributed to earlier bookings and increased traffic for the event website.
“The whitepaper captures the positive experience we had working with Experient’s Housing team to implement a dynamic flex pricing model,” said Dana Wuesthoff, AEM’s Director of Event Registration and Housing. “After seeing such positive results for our attendees, we’re believers that this model is the way to go to help us offer improved service to show participants.”
For the major entertainment company, MGM Resorts International, results included room block growth beyond the original contracted block, leverage to gain additional inventory for the next event based on stronger pick-up history, additional room nights, competitive rates and increased credibility with attendees finding the best rates available. The implementation of the dynamic flex pricing model increased credibility for the show organizer, hotel partner and the hotels.
According to Deanna Burgess, Director of Citywide Corporate Hotel Sales for MGM Resorts International, “We saw room block growth in 13 hotels by more than 15% from the original contracted block at lower-than-market rates. That’s something we’ve never seen before.”
The whitepaper explains how dynamic flex pricing, or rate yielding, works when there is a need to increase existing room blocks during the booking process and there is flexibility to adjust rates based on demand.
Modernize Room Block Pricing 2015
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
