🛒You Don't Have To Be a Commodity!

“Only shop on price” is a sign of a commoditized product.

The Big Idea: Nothing is destined to be a commodity. But you can turn anything into one if you aren’t careful.

The fastest way to turn your product into a commodity?

Discounting! Price-based promotions!

What is going on here: Travel has become commoditized through:

• Daily deal apps like Hotel Tonight

• Mergers that have lessened competition

• Third parties that use promotions to acquire customers

Combine these things with inflation, wage stagnation, and higher debt levels and you get a situation where your product can easily fall into “The Commodity Trap”.

Can you avoid this trap: Yes. No product is destined to become a commodity.

You begin by looking at your position in the market:

• Are you differentiated?

• Is your offer relevant to your target market?

• Can you defend your offer over the long term?

Besides that:

• Avoid price-based promotions

• Discounts

• Price wars