By implementing innovative and robust pricing and revenue management solutions, companies create a harmonious balance between supply and demand to further increase revenue, profit margin and market share.
Scottsdale, Ariz. (PRWEB) August 30, 2010 –
The recent recession—the deepest since the Great Depression—was particularly difficult for the travel and hospitality industries as people curtailed leisure travel and corporations reduced budgets. As market conditions improve, companies in the travel, hospitality and transportation industries are under pressure to achieve greater efficiencies, improve profits and increase market share. In a new videocast, Key Pricing and Revenue Management Strategies to Optimize Business Performance and Maximize Revenue, JDA Software Group, Inc. (NASDAQ: JDAS) outlines five strategies to help companies accelerate profit-maximizing opportunities through the adoption of pricing and revenue management solutions.
“The past several years have been marked by increasing economic volatility, and the impact was particularly felt by companies in the travel, transportation and hospitality industries as consumers became increasingly price-sensitive and less brand-loyal,” said Andy Archer, regional vice president, Pricing and Revenue Management, JDA Software. “As we continue to see moderate pickup ahead, companies can get the upper hand and keep pace with new demand by optimizing their revenue potential with a well-defined pricing and revenue management strategy.”
In the videocast, Archer outlines key strategies to help companies effectively exit the recessionary period and increase market share:
- Avoid the hype: With mixed news of the economy, it may be tempting to react by deploying massive discounting measures to stimulate demand in hopes of gaining greater market share from competitors. However, deep discounting can cause long-term damage to a company’s brand and its bottom line, causing profit to spiral. During this recovery period, companies should also avoid raising prices too fast or discounting without factoring in key elements, including price levers, capacity and customer loyalty. Avoid the hype and take a proactive approach to pricing and revenue management strategy to carefully balance supply and demand while optimizing pricing.
- Energize your company by adopting a well-defined business process. By adopting and implementing a comprehensive and well-defined business process for pricing and revenue management, companies can ensure that best practices are firmly in place and that decision-making activities are aligned in terms of maximizing profit for the business.
- Use an integrated approach to pricing and revenue management. Companies are better equipped to respond to market changes when they understand when their products are being sold at a profit or at a loss. This allows them to carefully manage price points to ensure that profitability is maintained. Therefore, a company’s strategy for improving pricing and profitability should be closely aligned with its business processes.
- Take a top-down approach. It’s critical for an organization to have the strong backing of an executive leadership team that understands the value of strategic pricing and revenue management initiatives. Success comes more quickly when senior executives take the lead in communicating a culture of change across the organization and the value it provides to the bottom line. This helps all stakeholders understand the initiative and why they are an integral part of the business strategy. Taking a top-down approach allows the companies to focus on taking it to the next level and truly focus on strategies and long term gain versus data collection and short term gain.
- Bridge the gap. Aligning the right tools, technology and people across the organization is key to ensuring that the multitude of decisions that are made each day are made quickly and seamlessly. The collaboration, visibility and analytical capability of such tools will help a company make more accurate and efficient business decisions to ultimately optimize profitability.
Consumer confidence and economic optimism are slowly returning to the travel, transportation and hospitality industries. While there is a tremendous opportunity for businesses to reap the benefits of healthier economic conditions, it’s important for companies to understand how pricing can help strike the right balance between supply and demand for their products or services to optimize revenue opportunities.
Added Archer, “By implementing innovative and robust pricing and revenue management solutions, companies create a harmonious balance between supply and demand to further increase revenue, profit margin and market share.”
To learn more about how best-in-class companies are using JDA Software’s solutions and services to successfully cope during the economic rebound, please view Key Pricing and Revenue Management Strategies to Optimize Business Performance and Maximize Revenue Videocast or visit JDA Software Revenue Management Solutions.
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About JDA Software Group, Inc.
JDA® Software Group, Inc. (NASDAQ: JDAS), The Supply Chain Company®, is a leading provider of innovative supply chain management, merchandising and pricing excellence solutions. JDA empowers more than 6,000 companies of all sizes to make optimal decisions that improve profitability and achieve real results in the discrete and process manufacturing, wholesale distribution, transportation, retail and services industries. With an integrated solutions offering that spans the entire supply chain from materials to the consumer, JDA leverages the powerful heritage and knowledge capital of acquired market leaders including i2 Technologies®, Manugistics®, E3®, Intactix® and Arthur®. JDA’s multiple service options provide customers with flexible configurations, rapid time-to-value, lower total cost of ownership and 24/7 functional and technical support and expertise.
About JDA Pricing and Revenue Management Group
JDA Pricing and Revenue Management Group helps companies in the travel, transportation, hospitality and media industries balance supply and demand through innovative forecasting, pricing and revenue management solutions. The result is a dramatic increase in revenue, margin and efficiency. JDA clients include Carlson Worldwide, Continental Airlines & Cargo, Harrah’s Entertainment, Omni Hotels, Princess Cruise Lines, Eurostar and TUI Travel (formerly Thomson Holidays).
This press release contains forward-looking statements that are made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally accompanied by words such as “can,” “will,” “ensure,” “help,” “enable” and “expect” and other words with forward-looking connotations. In this press release, such forward-looking statements include, without limitation, Mr. Archer’s remarks that customers can benefit from pricing and revenue management strategies. The occurrence of future events may involve a number of risks and uncertainties, including, but not limited to: (a) certain strategies may not perform exactly as anticipates; (b) there may be implementation and integration problems associated with our solutions; and (c) other risks detailed from time to time in the “Risk Factors” section of our filings with the Securities and Exchange Commission. Additional information relating to the uncertainty affecting our business is contained in our filings with the SEC. As a result of these and other risks, actual results may differ materially from those predicted. JDA is not under any obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.
“JDA” is a trademark or registered trademark of JDA Software Group, Inc. Any trade, product or service name referenced in this document using the name “JDA” is a trademark and/or property of JDA Software Group, Inc.