Activity 01: Static versus Dynamic Pricing by Steven Ong (RP) https://padlet.com/steven_ong2/cavn55sssgavbe2z Research and examine why dynamic pricing is increasingly more popular than static pricing in the hospitality industry. en-us 2023-01-10 01:37:04 UTC 2023-01-11 10:18:09 UTC hello@padlet.com Tinghong 210344161 https://padlet.com/steven_ong2/cavn55sssgavbe2z/wish/2438718982 What is dynamic pricing? - It is adjusting rates based on market conditions such as demand, comp set rates and seasons etc

What is static pricing? - It is using a one price fits all model to apply the same rate to all of your rooms

Why is dynamic pricing becoming more popular than static pricing? - It allows hotels to maximise revenue by analysing occupancy demand, length of stay, market segments etc and adjust their pricing to increase booking. 

Dynamic pricing allows hotels to maximise occupancy in lull periods so that rooms do not go wasted. It also allows analysing of comp sets and ensure that they are not underpricing and losing out on ADR or RevPAR

Pros - Increase or create demand, offer competitive rates, increase profit

Cons - Frequent changes lead to loss of customer loyalty, there is no set formula to constantly manage change in order to maximise revenue]]> 2023-01-10 03:37:06 UTC https://padlet.com/steven_ong2/cavn55sssgavbe2z/wish/2438718982 WeiQi https://padlet.com/steven_ong2/cavn55sssgavbe2z/wish/2438719310 Dynamic pricing takes into consideration changes in demand as opposed to charging a constant flat fee. A hotel that uses dynamic pricing will raise its prices when demand is high. Additionally, rates will decline as demand declines in an effort to meet as much of the demand as reasonable as possible.

Dynamic pricing also responds to increasing or decreasing demand as a given check-in date approaches and update rates based on your remaining availability. For instance, if you’re close to selling out, but demand is still strong, dynamic pricing will push your rates even higher so as to capture the most revenue possible.

By adjusting rates in tandem with changes in market demand, you can capture more occupancy and more competitive rates.

]]> 2023-01-10 03:37:34 UTC https://padlet.com/steven_ong2/cavn55sssgavbe2z/wish/2438719310 Shera 21040461_2 https://padlet.com/steven_ong2/cavn55sssgavbe2z/wish/2438719376 Dynamic pricing are based on market trends and competitors pricing which can increase revenue and RevPAR. One can also monitor market fluctuations in real-time which allows to capture more occupancy for hotels as an example. Rates can also be adjusted based on demand and conditions of the local market.

Static pricing which is fixed pricing used does not consider the competitor offerings, inventory availability or changing market conditions. It is risky to use this method as one might lose sales opportunities when they do not keep up with the changes according to market trend and competition.]]> 2023-01-10 03:37:41 UTC https://padlet.com/steven_ong2/cavn55sssgavbe2z/wish/2438719376 What is Dynamic Pricing and Examples ? (Jasmine) https://padlet.com/steven_ong2/cavn55sssgavbe2z/wish/2438720234 Dynamic pricing refers to a business technique where companies change the prices of their products to meet changing demand. It applies variable prices instead of fixed prices. For example, an airline can adjust the ticket price according to the type of seat, the number of available seats, and the remaining time until takeoff.]]> 2023-01-10 03:38:59 UTC https://padlet.com/steven_ong2/cavn55sssgavbe2z/wish/2438720234 hanee 210429781 https://padlet.com/steven_ong2/cavn55sssgavbe2z/wish/2438721108  qn 3 ) dynamic pricing allows you to respond to changing market conditions. As supply and demand shifts and inventory levels reduce, dynamic pricing models can increase product asking prices, maximize profits, and reduce manual entry errors unlike fixed pricing as they are unable to make changes to the inventory and etc. hence not maximising the profit

]]> 2023-01-10 03:40:19 UTC https://padlet.com/steven_ong2/cavn55sssgavbe2z/wish/2438721108 Nivetha 210054581 https://padlet.com/steven_ong2/cavn55sssgavbe2z/wish/2438721909 Dynamic pricing allows one to respond to changing market conditions. As supply and demand shifts the inventory levels are reduced, dynamic pricing models can increase product asking prices, maximize profits, and reduce manual entry errors.
Static pricing is also known as fixed pricing, which is a price point set by resellers that won't change.
Dynamic pricing is more popular in comparison to static pricing as static pricing being fixed is riskier in comparison to dynamic pricing. ]]> 2023-01-10 03:41:34 UTC https://padlet.com/steven_ong2/cavn55sssgavbe2z/wish/2438721909 Hui Ting 20040604_3 https://padlet.com/steven_ong2/cavn55sssgavbe2z/wish/2438722918 The reason why the hospitality industry increasingly prefers/uses dynamic pricing over static pricing is that this method would allow the industry to generate higher revenue.

Static pricing would only enable the company to have a consistent revenue / reduce revenue due to a high cost. 

Thus, the company prefers to use dynamic pricing as it will have a much higher profits generated from time to time basis. For example, movie tickets are charged at a higher price during weekends compared to weekdays. This would then allow company to maximise its revenue and occupancy rate during weekdays rather than static pricing.]]> 2023-01-10 03:43:15 UTC https://padlet.com/steven_ong2/cavn55sssgavbe2z/wish/2438722918 Dariah https://padlet.com/steven_ong2/cavn55sssgavbe2z/wish/2438723455 Dynamic pricing is more popular because the prices vary from day to day but it is beneficial as it targets different target audiences and at the same time, it can help expand the company's market segment. Therefore, maximizing their revenue. Meanwhile, static pricing is a strategy that only remains constant. There is no change that can be easier to track but not a lot of variety for the customers to choose from. ]]> 2023-01-10 03:44:08 UTC https://padlet.com/steven_ong2/cavn55sssgavbe2z/wish/2438723455 q4 dynamic pricing (nicolee) https://padlet.com/steven_ong2/cavn55sssgavbe2z/wish/2438724254 advantages of dynamic pricing
1. increased flexibility: remain profitable cos of freedom to focus on other aspects of the business and on different sources of revenue
2. improved profits: by setting prices based on real-time market conditions, businesses can optimise their profits
3. higher profit and sales
4. better inventory management
5. easier to beat and adjust to competition
6. demand reflective pricing

disadvantages of dynamic pricing
1. customer dissatisfaction
2. loss of sales
3. gaming/ challenging the system
4. not applicable everywhere
5. price fluctuation]]> 2023-01-10 03:45:19 UTC https://padlet.com/steven_ong2/cavn55sssgavbe2z/wish/2438724254 hazel https://padlet.com/steven_ong2/cavn55sssgavbe2z/wish/2438724830 dynamic strategy is allows for items to be priced according to the customers preferences while static pricing is a fixed price that will not be changed]]> 2023-01-10 03:46:08 UTC https://padlet.com/steven_ong2/cavn55sssgavbe2z/wish/2438724830 annabel https://padlet.com/steven_ong2/cavn55sssgavbe2z/wish/2438724922 Advantages of dynamic pricing:
- businesses can optimise pricing strategies. able to increase prices on products with high demands

Disadvantages of dynamic pricing:
- customer dissatisfaction. different customers are paying different prices. ]]> 2023-01-10 03:46:16 UTC https://padlet.com/steven_ong2/cavn55sssgavbe2z/wish/2438724922 cheyenne 21011770_2 https://padlet.com/steven_ong2/cavn55sssgavbe2z/wish/2438725835 What are the advantages and disadvantages of static pricing?

Advantages: 
- Being able to establish a price valid for all kind of customers 
- Great way to attract new, skeptical adn price-sensitive buyers 
- It has a straightforward revenue formula

Disadvantages: 
- Variations in fulfillment costs, shipping locations, and seasonal demand are not considered in static pricing models
- Resellers have to build additional buffers to account for the shift
- Cause an indefinite amount of lost sales opportunities

]]> 2023-01-10 03:47:35 UTC https://padlet.com/steven_ong2/cavn55sssgavbe2z/wish/2438725835 umairah 210383691 https://padlet.com/steven_ong2/cavn55sssgavbe2z/wish/2438726623 pros and cons of static pricing

advantages: 
- fixed and constant pricing. Helps keep track of it easier without having to constantly check. 
- Helps businesses to attract a stable customer base

Disadvantages: 
- Lack of flexibility for the pricing, 
- Does not account for fluctuations 

]]> 2023-01-10 03:48:15 UTC https://padlet.com/steven_ong2/cavn55sssgavbe2z/wish/2438726623 Asyiqin 21037968_2 https://padlet.com/steven_ong2/cavn55sssgavbe2z/wish/2438726956 hotel that uses dynamic pricing often modifies room rates in response to market trends like occupancy and total demand. 

Based on current market information, rates may fluctuate from day to day or even hour to hour. Hotel dynamic pricing allows room rates to fluctuate continuously to attract more business by focusing on area supply and area demand.]]> 2023-01-10 03:48:46 UTC https://padlet.com/steven_ong2/cavn55sssgavbe2z/wish/2438726956 Fais https://padlet.com/steven_ong2/cavn55sssgavbe2z/wish/2438728033 Static Pricing is pricing that is fixed and remains the same. Usually, luxury companies and retailers sell their items using static pricing and will not reduce their price even during sales period]]> 2023-01-10 03:50:14 UTC https://padlet.com/steven_ong2/cavn55sssgavbe2z/wish/2438728033 https://padlet.com/steven_ong2/cavn55sssgavbe2z/wish/2438728870 Why is dynamic pricing increasingly more popular than static pricing in the hospitality industry?

In the hotel industry, hoteliers choose Dynamic Pricing over Static Pricing to capture more potential occupancy and more competitive rates to attract more guests. It also allows hotels to fill up their rooms according to the demand pattern. For example: A major event is happening in Sentosa Island and Hotel Sentosa decided to charge guests $120 (Static Pricing - Standard Price, set this low due to lower demand), with this sudden change of demand pattern, hotels who adapted dynamic pricing would maximize the revenue earned.
Usually, dynamic pricing is handled by dedicated software thus there is lesser time wasted in handling the system.

What is Static Pricing and examples?

Static pricing which is also known as fixed/constant pricing. Its price point is set by the seller and won't change. A static example is FNB, where their prices remain the same throughout the days, weeks, and months. 


]]> 2023-01-10 03:51:25 UTC https://padlet.com/steven_ong2/cavn55sssgavbe2z/wish/2438728870 Junwei https://padlet.com/steven_ong2/cavn55sssgavbe2z/wish/2438729141 Dynamic pricing refers to setting flexible costs, adjusting rates based on various market conditions such as demand and competition.

Meanwhile, static pricing refers to having a fixed, consistent price throughout a fixed time period, and is usually implemented to ensure high consistency and convenience throughout operations.

Advantages of static pricing:
- more convenient to execute operations
- ensure easier financial tracking, estimations, budgeting and calculations

Disadvantages:
- Does not account for various market conditions
- lack of flexibility
- requires accurate identification,  understanding of sales volume  + efficient resource allocation


Dynamic pricing is increasingly more popular as it allows for revenue maximisation, providing suitable prices based on various market conditions, ensuring that less popular periods would also be able to attract some customers, thus reducing wasted capacity + inventory. This means that during less desirable periods, being cheaper maximises revenue earned by pulling more potential customers, while during more desirable periods, revenue is maximised by hiking up prices across the high demand present in the market.
This means that while being more convenient, static pricing limits revenue earned, affecting potential profits. Meanwhile, dynamic pricing considers the possible perceived values that customers might have regarding the company's offerings. 
Since companies want to maximise revenue and attract more customers throughout the set period, reducing any dead / wasted inventory, they would prefer to adopt dynamic pricing, especially with target markets that are unpredictable.

For example:
Airline / hotels tickets --> changes based on dates, timing and seatings available, among other factors, as perceived value changes easily, being inconsistent.

]]> 2023-01-10 03:51:49 UTC https://padlet.com/steven_ong2/cavn55sssgavbe2z/wish/2438729141 nadin nadinnvrezria https://padlet.com/steven_ong2/cavn55sssgavbe2z/wish/2438729969 Static pricing refers to the business have a fixed price regardless of the existing market trends.]]> 2023-01-10 03:53:04 UTC https://padlet.com/steven_ong2/cavn55sssgavbe2z/wish/2438729969 Renee 21039130_2 https://padlet.com/steven_ong2/cavn55sssgavbe2z/wish/2438730286 What is Dynamic Pricing and examples?
Dynamic pricing in other words is known as demand pricing or time-based pricing, where businesses adjust the prices of their products or services according to changing demands. For example, hotels prices their rooms at different rates based on the different room types, which have different amenities included.

]]> 2023-01-10 03:53:31 UTC https://padlet.com/steven_ong2/cavn55sssgavbe2z/wish/2438730286 https://padlet.com/steven_ong2/cavn55sssgavbe2z/wish/2438785930 Dynamic Pricing:
- Adjusts prices based on the willingness of customers to make purchases.
- Dynamic pricing is a pricing strategy that utilizes variable prices instead of fixed ones.
- It is useful to change in real time the price of an item and be reactive to the demand from the market.
- With dynamic price is meant the ability to change prices according to the behaviour of the competition.

Static Pricing:
- Choosing not to change the price according to your market trends and therefore competition, may occur an indefinite amount of lost sales opportunities. The fixed price is recommended when you are the manufacturer, which is able to establish a price valid for all kind of customers.
- Gives customers a single price whereas dynamic pricing model example changes the price of an item in real time and over time depending on the period, tactics that the business have, rate fencing etc.
- Doesnt change even if high or low demand from customers.]]> 2023-01-10 05:15:23 UTC https://padlet.com/steven_ong2/cavn55sssgavbe2z/wish/2438785930