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9. Wholesaler Says Vegas-Style Pricing Coming to HawaiiOctober 16, 2012
Condominium Connection, a 125-property Hawaii wholesaler, reports that Las Vegas-style hotel and condominium pricing has arrived in Hawaii in a big way and agents now need to counsel their clients to book further in advance to take advantage of initial lower pricing.
“Sophisticated revenue management and yield-pricing models are beginning to dominate the condominium and hotel landscape in Hawaii," says Joseph Fienberg, Condominium Connection president, in a written release. "This trend in Las Vegas-style pricing is helping build revenue in both peak and lower demand periods, even for the smaller properties. Travel agents need to have their clients book earlier to take advantage of lower pricing since the days of the last-minute hotel ‘fire sales’ are being extinguished.”
Fienberg also believes the time of the single static contracted rate is rapidly coming to an end. He notes, “Most hotels and condos had been dropping rates as arrival dates approached in efforts to sell vacant rooms, but they finally realized that the last-minute deals they offered only diluted their overall revenue.
“By making available dynamic and multi-tiered rates that start low and build upward for later bookers, the properties are finding they benefit from stronger advance reservations and higher yields in the long term," he says. "The rate structure now is like an upward spiraling staircase, where they start low on the first step and climb the stairs as we get closer to arrival.”
Condominium Connection has also been noticing that many properties in the islands are contracting three to six different rates for each room category with every level yield-managed.