Investing in inspiring security and confidence, more profitable than lowering prices?

Destinations

Yolanda Argüelles has stressed that “the pandemic has changed us in many aspects, which makes purchase decision factors have also changed. It is clear that price is always going to be an important factor, but in an environment like the current one, the feeling of security and confidence has become a key factor. This way you can get out more profitable not to lower prices but to invest in aspects that give that added value to the establishment ”.

“Cancellation insurance such as those offered by Flexmyroom, will in all probability be an element that will play a significant role taking into account the uncertainty that exists in the market”, according to Yolanda Argüelles

Likewise, he added, “the transparency and information capacity. The hotel has to be able to answer the many questions that the client may have regarding its anti-COVID protocols. In addition to having updated information on the web and its staff prepared for it, it can rely on automation systems ”.

Another factor that may be more decisive than price, in his opinion, is “the flexibility. Having flexible policies in the face of possible changes in travel will undoubtedly have a positive impact on the purchase decision ”.

Unavoidable price drop

Nevertheless Cesar Lopez acknowledges that “With constant supply, whoever finds the formula so that prices do not fall if demand contracts will deserve the Nobel Prize in Economics. All past recessions have shown that any call to hold prices is doomed. “

Of course, as he has admitted, “traditionally in the sector the only ones that can bear the price are the big international chains because, by creating the concept of recognized brand, they isolate themselves from the competition. Your product is unique. On the other hand, for the vast majority of establishments the price must be adapted to the fluctuations of the market. And they better do it like that because going out of the market would be even worse”.