In June 2008, the Kimpton Hotels’ Revenue Management Area Director (Director) of Washington, DC was trying most recent customer information report of Priceline.com (Priceline) to process. In an attempt to improve revenue during periods of low utilization in the hotel, the director had recently with Priceline “name your own price” bidding format. While the use of this distribution channel has been limited success, the director was asked the best way to maximize revenue from private … Read more »

In June 2008, the Kimpton Hotels’ Revenue Management Area Director (Director) of Washington, DC was trying most recent customer information report of Priceline.com (Priceline) to process. In an attempt to improve revenue during periods of low utilization in the hotel, the director had recently with Priceline “name your own price” bidding format. While the use of this distribution channel has been limited success, the director was asked the best way to maximize the revenue from Priceline without cannibalizing existing sales or tarnishing of the Kimpton brand. His challenge was a pricing policy, which should be provided the optimal posted price for the hotel room in Washington DC as well as the number of rooms that Priceline would determine was available.
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from
Chris K. Anderson
John G. Wilson,
Read Joel
Source: Ivey Publishing
8 pages.
Publication Date: Feb 11, 2010. Prod #: 909E27-PDF-ENG
Kimpton Hotels – Setting Prices on Priceline (A) HBR case solution

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