Among many different business strategies, pricing strategy is one of the most important. There are many different factors that you should pay attention to when creating your hotel's price strategy: guests, market tendencies, tourism changes, competitors and etc.
The hotel can't reach successful growth and stay in business if they have no strategies. In order to succeed, business needs a marketing strategy, sales strategy and also the pricing strategy. Small hotel owners sometimes come up with prices which they think would do just fine. However, "gut feeling" is not a smart choice when talking about pricing. Sure, things might work out at the beginning, but success driven on coincidence is not going to last long.
Pricing strategy is a very dynamic element. You need to be flexible and adjust your price plan based on the market changes, happening in the city/country or even happenings at your own hotel.
Know your guests and what they want to see. If you are a holiday resort, focusing on long stays, you should have plenty of time-based pricing offers (LOS = Length Of Stay). These guests, who are staying for a long time period, don't really pay attention to the daily price, so it is enough if you display your price offer as a total price.
However, if your main target is short staying guests (hotels near the airports, convention centers, motels), then you should work on your daily rates. Meaning that prices should be formed and displayed on a daily bases.
There are many articles and ideas of price strategies for the hotels. They all could be applied in practice and all could be useful at some level. I just want to run through some of those factors and summarise the idea of a good pricing strategy.
These are just a few factors, that you should consider when creating a pricing strategy for your hotel. If you are not sure how to proceed or where to start, you can always seek help from the experts. They can overview your current situation and give insights on the improvement plan.
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