Hotel owners make their properties attractive to increase bookings. In this, they add different types of services in their hotel. Hence it influences the prices of hotel rooms.
Different types of efforts should be made to get success in business. Primarily, hotel room prices contribute to a major part of revenue.
In deciding the prices of a hotel room hoteliers consider different aspects. Room types, amenities, locations are those factors that influence prices.
The pricing strategy of hotels changes with time. So there are some factors that influence the price of a hotel room. These factors vary with time. Fluctuations in the prices of the hotel room happen with time.
Varieties of factors influence hotel room prices. So In this blog, I have mentioned some factors which impact on room pricing strategy.
1 Location of your hotel 2 Room service 3 Cleanliness of room 4 Type of room 5 Price of competitors hotel
Location is a very factor in deciding the price of your hotel rooms. If your hotel is situated near to any monument and theme park then it will get more bookings.
Any nearest attraction to the hotel affects its business a lot. Visitors want to stay in these nearest hotels. So they will not have to travel much to reach those attractions.
Hotels increase the charges of the room when they know there are a number of visitors. But in the case of fewer visitors, the hotel charges fewer prices.
At the peak time of the season, hotels increase their rates. Bookings go high at this time then rates do not affect the occupancy of a hotel room.
In these situations, visitors are ready to pay more for hotel rooms. Hence, a hotel increases the prices of its rooms. The location of the hotel gives a positive impact.
Some guests do not leave the room even for food. Then the hotel provides all the services to their rooms by charging some extra amount.
Room service is an amenity so hotel charges extra for it. It depends on which type of room service you are guest is taking from you.
For normal room service, the charge will be different. And for luxurious room service, charges will be different. Guests can pay a higher amount for room service.
Extra arrangements will increase the cost of the hotel room. Hence hoteliers will hike the prices of the rooms according to services offered.
The customer does not hesitate high prices for standard services.
Cleanliness plays a crucial rule in making your brand image of the hotel. Hygiene is a very important factor which increases the price of hotel rooms.
Customers may give negative reviews by getting dissatisfied because of unhygienic. Because of it, you may lose potential customers.
So maintaining hygiene and cleanliness is important. It will increase the cost for the company so they will increase the price of rooms.
For maintaining a level of cleanliness hotels have to invest in it. So for these efforts, they charge from customers by increasing the prices of the room.
The hotel has to arrange equipment for the housekeeping staff for providing better services. New technological equipment will increase the efficiency of your staff.
It is also a big factor in deciding the price of rooms by hotels. A hotel offers different types of rooms. Rooms are divided into different types of categories.
Hotelier decides room types on the basis of amenities. So the prices of rooms are dependant on these amenities.
A luxury room and a general room price can not be the same. What amount should guest pay it depends on all the amenities. A room which is offering extra service then the general room will definitely charge extra price.
Management should assign a price to a room by considering services of it. A normal room worth less than a luxurious room. An AC room will charge more price than a non-AC room.
In a hotel, rooms are available from the general room to a Delux room. Prices of these different types of rooms are different.
Hotels are using new technologies for improving customer service. Remote check-in and touchpoints are using by hotels to give faster service. But this hotel increases the prices of the rooms.
When you are setting the price consider competitors’ prices also. You can not set a higher price then Competitor for the same room type with the same amenities.
In this case, the customer will not book your hotel rooms. In the case of the lower price, you may suffer loss. So keep the price on a competitive level.
So while deciding the prices of hotel rooms Consider the price of competitors too. You should remain in competition while deciding on room prices.
For any business competitors’ analysis is very important. In every category of room deeply study the competition. Decide competitive prices for hotel rooms.
Setting higher prices then other hotels may leave many vacant rooms. Customers will not give preference to that hotel which is charging more than others for the same offering.
In conclusion, it can be said that hotel rooms price decided by considering different types of factors. In deciding the prices of the room locations and other factors matter a lot.
While deciding price you should consider guest behavior in mind. Do not set a price too high so a guest will not pay.
Pricing strategy is very important in hearing revenue. A hotelier sets room prices to earn maximum profit. But decide price carefully by considering the willingness of customers to pay for rooms.
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