What is the meaning of time based pricing in the hotel industry?
The word time based pricing refers to a technique of pricing that charges its consumers according to time. This stands differ from worth based pricing – whereby the company charges its customers according to value delivered. The Time-Based Pricing Method is the average in the tourism industry where consumers are charged per night. Whereby prices vary depending on what time they are being booked. With higher prices are charged through peak season, or during elevated demand times (conference and events).
Outside of the hotel industry, in consultancy for instance Time based pricing might not always be the best choice as the earlier you work, the less you get paid. Thereby the client will always want you to work less – while the organization seeks to take longer as thereby revenues boost. With opposite goals, this is an issue heading for fate. Clients will be less disposed to get in touch with you for your services as it will charge them for every minute.