The pricing techniques have been used in many industries to compete with other competitors and gain market share. The same can be achieved by small hotels if they use these techniques to boost their sales. The price of your product is what differentiates you from your competitor.
Here are some smart pricing techniques that you can use for your small hotel, guesthouse and B&B:
It is a good idea to match your some of your room rates with a competitor around your location. For example set one room rate at the same price and other at a higher price. The benefit is that you can get customers who are seeking cheap rooms as well as gain opportunity to earn a little more than the competitor.
Many Psychological studies have indicated that we humans tend to get attracted to odd numbers. Lets say if 9 is rounded to 10, then 10 has two digit place, thus our mind psychologically perceives it as a higher number despite the little difference. Therefore this technique has been used by several brands around the world. So you can apply the same technique for your room rates. So instead of $200 you can set the room rate at $199 and then see the results for yourself.
You can set the price of your basic room to the cheapest price in the market and set the prices of your other rooms near by the competitors In this way, you will be able to cover lower and the higher markets in one go!
Set the room rate of your best rooms with higher rates as compared to your competitors. Also add some extras like free wifi or breakfast to justify the high price. By such rate you will make an impact on guests by creating a higher standard compared to your competitors.
Promotional discounts are certainly the best ways to catch eyes of guests for your hotel. Promote your discounted room rates online, in newspapers and any other medium to grab attention of masses. The best way to use this tactics is use it whenever you see less number of bookings. If you do is regularly, your guests might think that your property is of less value, and that is not something you want to happen. So you this strategy only when required.