How do you adjust revenue management for seasonal and event-based customer segments?

1 Seasonal customer segments

Seasonal customer segments are those that have a predictable pattern of demand based on the time of the year, such as summer vacationers, winter sports enthusiasts, or holiday travelers. To adjust your revenue management for these customer segments, you need to consider forecasting, pricing, and distribution. Forecasting requires the use of historical data and market trends to estimate demand and revenue potential for each season. You also need to monitor booking pace and competitive landscape to detect any changes or opportunities in the market. For pricing, dynamic pricing is the practice of changing prices based on demand and supply to capture maximum value from each customer segment. Different pricing strategies, such as discounting or bundling, can be used to stimulate or manage demand depending on the season. Distribution requires different channels, such as online travel agencies (OTAs), direct booking, or group sales, to reach and attract target customer segments for each season. You also need to manage your distribution costs and commissions, which can vary depending on the channel and season. By using these strategies, you can adjust your revenue management for seasonal customer segments and capture maximum value from each customer segment.

2 Event-based customer segments

Event-based customer segments are those that have a spike or a drop in demand based on a specific event or occasion, such as a concert, a conference, a festival, or a natural disaster. These events can range from planned to unplanned, recurring to one-off, and local to global, and can have either a positive or negative impact on revenue and profit. To adjust your revenue management for event-based customer segments, you need to consider anticipation, pricing, and distribution. Anticipation requires you to identify and anticipate events that can affect demand and revenue, while pricing involves using dynamic pricing strategies to capture the maximum value from each customer segment. Distribution requires leveraging different channels to reach target customer segments for each event while managing costs and commissions. For example, OTAs may be used to leverage their marketing power and customer base for popular or global events while limiting availability or increasing commissions for niche or local events. Group sales may be used for large or recurring events by negotiating special rates or contracts.

3 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?