Pricing Strategy in Property and Letting

Case Study:

Pricing Strategy in Property & Letting

Client

UK Property Letting Chain

Issue

Pricing and Differentiation Strategy for Serviced Apartments

Approach

The client wished to understand the different price flexibilities and connected service needs of non-corporate customers who use serviced apartments
The client had robust understanding of the market for corporate customers, but had little knowledge of the growing sector for non-corporate customers
The first phase of analysis focused on understanding key needs and how these varied across different groups
The main area of work involved conjoint analysis to understand the customers' willingness to pay overall, and for different levels of service
Competitor analysis was also undertaken to understand competitor proposition and pricing in relation to the clients

Results

White Space identified an underserved potential high margin segment that could be captured through differentiation on service levels
This allowed the client (in combination with internal data on corporate customers) to build a differentiated business and pricing model, with particular properties targeted at high margin customers