Since HTR launched the lead program back in 2019 we've heard one question time and time again which is, why are all leads priced the same? Today we're excited to announce that the lead program is moving to a demand based pricing model.

What is Demand Based Pricing?

Demand based pricing is a strategy where prices for products or services are adjusted in real-time based on various factors such as demand, availability, and market conditions. This model allows for more flexibility and responsiveness, ensuring that vendors have access to the most competitive pricing at any given moment.

How Does it Work?

With the new demand based pricing model, the cost of leads will be determined based on demand. For example, a 500+ room opportunity in the United States may cost more than a similar opportunity in India (assuming that there is higher demand for opportunities in the United States).  Lead pricing will gradually evolve over time to better fit market demand and reach equilibrium pricing where leads from segments that are less in demand will decrease in price and leads from segments in high demand will increase.

Access Real-Time Pricing

Vendors can access real-time pricing information directly from their vendor dashboard. This allows for greater transparency and enables vendors to make informed decisions about which leads to pursue based on demand and market pricing.

Stability and Predictability

To ensure stability and predictability, lead pricing is capped so that it will not change by more than 5% week over week for each segment. This constraint helps ensure pricing transparency as well as prevent rapid fluctuations in pricing giving vendors time to adjust their strategies to find the most cost-effective market segments based on real-time market conditions.

Benefits of Demand Based Pricing

• Competitive Pricing: Vendors can take advantage of real-time pricing to secure leads at the most competitive rates.  Low demand segments will get leads at large discounts encouraging more vendors to connect with these hotel tech buyers and improve the marketplace experience.
• Flexibility: The demand based pricing model allows for greater flexibility, enabling vendors to adapt to changing market conditions.
• Transparency: Vendors have access to real-time pricing information, promoting transparency and trust in the lead procurement process.
• Stability: With pricing changes limited to 5% week over week, vendors can expect a level of stability and predictability in lead pricing.

Conclusion

The shift to a demand based pricing model will enhance the overall experience for vendors over time by makings leads in low demand segments more accessible via decreased pricing and leads in high demand segments more accurately aligned to lead value.  This will in turn improve marketplace dynamics by encouraging more connections to hotel tech buyers that may be neglected in the market in a flat priced world. If you have any questions or need assistance navigating the new pricing model, please don't hesitate to reach out.