Pricing is one of the most challenging aspects of selling a product or service. Why is revenue management such a critical function for hoteliers and what are the factors that influence pricing the most? Pricing is one of the most challenging aspects of selling a product and one of many critical elements that make up the process of revenue management. Knowing how to set these, when and why to change them is critical in driving maximum revenue from your product. Yet there is no exact science that can accurately tell you what your exact price points should be at a given point in time, and there are many factors that influence your price points which can also differ amongst the varying types of operators in the market. Apart from market demand, property supply and market willingness to pay, other strong factors that influence pricing include guest reviews, variations in the cost of distribution and differences in market data. Reviews influence product perception which influences your demand and market price points, whilst properties in competition with one another are not necessarily basing their pricing decisions on the same type of market data. For example, some properties work with unconstrained market demand data and others work in a more constrained environment. The key is to regularly review your competitive set, ensure your competitive set is accurate and determined by the customer, constantly check your price positioning in the market to ensure it makes sense and maintain a flexible demand driven pricing structure for your product. Get the full story at ReviewPro