How Value Insulates Brands
The outcry faced by Delta Air Lines over proposed changes in its SkyMiles and SkyClub programs last Fall is a good reminder of the risks faced by brands looking to take value out of their products and services.
NEW THINKING
The outcry faced by Delta Air Lines over proposed changes in its SkyMiles and SkyClub programs last Fall is a good reminder of the risks faced by brands looking to take value out of their products and services.
Business leaders often confuse pricing methods with pricing strategies, so it is important for us to distinguish sharply between the two. Pricing methods yield a price number as a finite output. These outputs can vary significantly, depending on the information sources used.
Recently, I took what felt like a fairly expensive Uber ride from the San Francisco airport. Ridesharing used to be far less expensive than taking a taxi, but that is not the case anymore; in many places, it’s equally expensive, if not more.
Over the past two years, brands raised prices at record rates. In fact, many brands raised prices every quarter over the past two years. Consumers are starting to push back. But, brands, conscious of their margins, are finding ways to raise prices in, shall we say, more creative ways. If the last two years has taught brands anything, it is to be profitable at any cost, even if it is not in the best interest...
Hilton just introduced a new hotel brand in its Elevated Essentials group of hospitality offerings. The Elevated Essentials category comprises Hilton Garden Inn, Hampton by Hilton, Tru by Hilton and the latest entry, Spark by Hilton. The overarching description of the Elevated Essentials group is “Signature amenities and services in all the places you want to be.”