What is the definition of Flexible Price Policy in the hotel industry?
Flexible pricing is the practice of pricing a merchandise or service by discussions between buyers and sellers, within a certain range. It is one of many different pricing strategies used by administration to stimulate demand. When done properly – companies are able to sell their products with a complex price than originally. A flexible price policy is a standard exercise within most Revenue Management strategies.
This strategy is more common in amenities which are customised as per the customer’s needs.
Flexible pricing strategies are often used by companies, which aims to gain a competitive advantage. Flexible pricing allows price segmentation – by donating different sections different rates – corporations are able to offer alike merchandise at rates proper to each buyer. A flexible pricing policy allows a business to quickly adjust pricing as essential to lodge an altering business environment or to overwhelmed competitive challenges.