A hotel company was preparing to introduce a new hotel product geared toward meeting the special needs of the business traveler. The company recognized that success of the product depended not only upon meeting customer needs but also on balancing affordability with ROI.

Research Objective:

CMI was engaged to determine the optimal pricing for the new product.

Methodology:

Using the Price Sensitivity Analysis model, CMI gathered customer data, which was plotted to identify several key points. An acceptable pricing range and optimal pricing point were identified.

The Result:

The hotel company used the results as a guideline for pricing individual properties in the company’s numerous markets.