You cannot just finalize a hotel room pricing list based on what you as a hotelier think will work. There is a proper pricing strategy for hotels that need to be followed. This hotel pricing strategy helps you finalize prices that are guest-friendly and profitable for you. This includes finding the right hotel suppliers that contribute to maintaining quality while being pocket-friendly; such as DZEE products for hotel amenities, food and beverages, staff payments, and more. You have to watch more of what is happening around you and then devise your own hotel pricing strategy. The leading 10 hotel pricing strategies that will fill room generate profits are being shared here with you.
1. Rate of Occupancy
Hotel room occupancy depends on supply and demand, you have to adjust the pricing accordingly.
It is a standard practice for hotels to fluctuate prices during on and off seasons. When there is demand the prices go up to get the most out of each room. At the same time, when the season is slow, most hotels bring down prices to increase room occupancy.
2. Analyze and Forecast Hotel Room Pricing
A history of booking during the years, pretty much gives you an idea of which time is profitable for you and which is not; use that to your advantage.
You have to analyze the booking history based of occasions, demands, promotions, and occupancy rate. This will help you get a better idea of the booking similarly made during the current year. This will help you adjust the pricing accordingly.
3. An Eye Out for Competition
You want to remain in a close price bracket with your competitors; that is essential for any pricing strategy for hotels being implemented.
As a hotelier you have to base your hotel pricing strategy based on what your competitors are doing. This would ensure you are always offering a similar or better price than the hotels around you. This helps your guests always keep you in the running for a booking.
4. Segmented Pricing Strategy for Hotels
Understand your hotel segmentation and who you cater to, base your room pricing accordingly.
Depending on what you offer, room types, locality, and etc., you have to understand the guests you cater to. The pricing you offer should target them. Accordingly, the prices for the hotels according to the segments would vary.
5. Stay-Length Hotel Pricing Strategy
Based on guest stay duration, you can come to a price strategy that works for you and them.
Any pricing Strategy for hotels needs to factor in guests who plan on staying for long periods; or even for a night. Those opting for a longer stay can be adjusted to create a loyalty while remaining profitable for you. While those staying for a single night or shorter stays can pay the regular price.
6. Guest-Based Hotel Pricing
Guest demographics should be factored in for a better chance of having more rooms occupied.
Families, solo travelers, aged/ young travelers, there are so many different guest types that you have to cater to. Base the pricing on the guests approaching you for the room type and services. Out of all the 10 hotel pricing strategies that will fill room generate profits; this will give you the most understanding of how to go about the pricing strategy for hotels.
7. Factor-in Cancelation
There are many unforeseen circumstances where guests cancel last-minute; you need a hotel room pricing strategy that factors in cancelation costs.
When guests are finalizing their booking, you can offer them a free cancelation window. But as they get closer to the booking date; start implementing a cancelation cost. So that they either show up or in extreme cases pay up.
8. Upsell / Upgrade
While guests are making their booking, offering and upgrade and upselling your room is a great way to get them to spend more.
While you offer a room at a standard price; package things around it in a way that prompts guests to spend more for a better experience. Upselling your services and products should be an essential part of your hotel pricing strategy.
9. Loyalties Pay Off
When you have a guest that chooses you every time, you want to keep giving them a reason so that other hotels don’t get a chance to swoop in.
Give your loyal guests the benefits they deserve. Guests who choose you every time for long and short stays should have a loyalty program that gives them the motivation to keep coming back.
10. Partnered Cross-Selling Hotel Room Pricing
Partner up with your local spots to cross-sell and earn a profit before the guests have even arrived.
Guests have an easier time going around when they have their plans sorted prior to arrival. Partner up with your local museums, gyms, tours, and car services to add into your hotel room pricing.
Which of the 10 hotel pricing strategies that will fill room generate profits would you be factoring in when making your hotel pricing strategy? Let us know in the comments below!
