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.
Methods For Smart Pricing Tactics
Here are some smart pricing techniques that you can use for your small hotel, guesthouse, and B&B:
Match your room rate with your competitors
It is a good idea to match some of your room rates with a competitor around your location. For example, set one room rate at the same price and the other at a higher price.
The benefit is that you can get customers who are seeking cheap rooms as well as gain the opportunity to earn a little more than the competitor.
The old and still-used Psychological pricing Technique
Many Psychological studies have indicated that we humans tend to get attracted to odd numbers. Let’s 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 to your room rates. So instead of $200, you can set the room rate at $199 and then see the results for yourself.
Cover the middle market
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 the competitors.
In this way, you will be able to cover lower and higher markets in one go!
Show you are better than the rest
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.
With such a rate, you will make an impact on guests by creating a higher standard compared to your competitors.
Promote your hotel via discounts
Promotional discounts are certainly the best ways to catch the eyes of guests for your hotel. Promote your discounted room rates online, in newspapers, and in any other medium to grab the attention of the masses.
The best way to use this tactic is to use it whenever you see less number of bookings. If you do it 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.
Other Methods For Smart Pricing
Apart from the above methods, there are some other methods too for setting the price of Small Hotels, Guesthouses, and B&Bs
Seasonal pricing is the method to raise the price of the hotel when the arrival of customers is more. Then you can create a separate price for the seasonal duration. The price gets raised due to the high demand in the market.
Value-based pricing means the customer will pay for the brand name and the trust in the services. They are paying for the trust that they had in the services.
These kinds of pricing are suitable for those who are offering something unique, and different and delivering exactly what the customer wants.
When any customer wants te extra services in the hotel then the hotel do arrangements for them. Then these extra facilities are paid for.
For example, if you are staying in a hotel with your partner and looking for a celebration then the hotelier will arrange the same for you.
Here you have to pay the given amount by the hotel for the extra service done by them. So premium pricing is the pricing set by the hotelier for the extra services other than the basic one.
Bundle pricing is the pricing that is used to sell the extra services with the basic services at some discounted price.
In bundle pricing, one service is combined with another service then the hotel manager provides a discount or a special price for them
This will increase sales and give satisfaction to clients who are getting products and services at a cheaper price.
Penetration pricing is the pricing that helps you to penetrate the market. This kind of pricing perspective is to attract the customer.
This price is somehow lower in price used to draw the customer’s attention and push them to buy the services of the hotel.
Key Take Away
Hence we can conclude that hoteliers need to set the price of the services especially hotels, and guest houses. They can set their prices according to the market situation and the season.
Here the hotelier can set the processing according to the customers. That customer can pay easily and be satisfied with the cost you set.
In case the price is high then the service should be given to is of that level. That after paying the amount customer does not regret it.
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This was all from “5 Smart Pricing Tactics for Small Hotels, Guesthouses, and B&Bs“. I hope I was able to clarify it for you.
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