Hotel room pricing is based on various factors. Your hotel pricing strategies should be based on the factors, so that you are able to boost revenue. What you provide in your room such as sourcing the best hotel supplies from DZEE Textiles, within your budget such as; best hotel towels in USA, bedding, amenities, and more everything effects the final room price. But we have identified the 5 most effective hotel room pricing strategies to boost revenue which will help; you with your room pricing strategy.
1. Competition Based Hotel Room Pricing
Knowing what your competition is offering is essential to make an offer to your guests; that is either similar or even better.
Price matching is one of the go-to pricing strategies used by hotel owners. You have to highlight your hotel features that give you an edge over your competitors; and then mention the matched price. Imagine, you having a pool or free parking in the same room price and your competition doesn’t. When you market that, you are more likely to get bookings much faster than your competitor. So, always keep an eye out for what your competitor is doing and make your plan accordingly.
2. Pricing According to Season
Hotel pricing strategies should be based on the traveling season and hotel room pricing; should vary accordingly.
Seasonal pricing is one of the 5 most effective hotel room pricing strategies to boost revenue. When traveling is ramped and hotels are getting booked frantically, you want to keep a lower price; to attract guests amongst the competition. But when there are not many travelers, and booking is slow, you need to earn profitable revenue from lower number of rooms being occupied. That is when you can put a heftier price tag to the rooms. But again, highlighting what else your hotel has to offer in that price tag despite the seasonal rush is an integral part of the strategy. Because you never know who is offering a better price then you.
3. Psychological Hotel Pricing Strategies
Everyone knows about this trick; but it still works when it comes to making guests think they are spending less when they are essentially spending the same.
The .99 trick is one of the oldest in the book; which to date is also the most successful one. You would find this strategy being used by most industry to trigger sales for them. They work just as effectively in the hospitality industry. You can also adopt the same price display strategy, that would bring your more clicks in comparison to those who straightaway round off the price. You would find yourself also giving more attention to prices that are not rounded off. So be smart and price your hotel rooms in a way that psychologically trigger guests to click on your website.
4. Booking Length Based Pricing
When you have long stay guests, hotel room pricing can vary accordingly; as they would be spending more on other services.
The hotel pricing strategies should take guest stay length into consideration. Guests staying for a short time can be charged more while those staying for a longer period of time; can be given a discount. Guests that stay longer and get a discount are more likely to spend on other aspect of hotel services and you can also upsell other things to them with time. While those who stay for a short period would have time to check other facilities so revenue can only be generated through room rent.
5. Deals, Packages, & Offers Based Prices
Special offers should always be a part of hotel pricing strategies as guests are always looking for something extra that a hotel has to offer within the room price.
It is especially during on-season guests are looking for deals and discounts they can get for a better price and more facilities. You need to have that in mind and create packages that help you get the most from your room rent and you get to offer your guests more than just a room. This is also a great way to attract guests during off-season. When you have slow bookings, by offering discounts, you can always get more guests to start making a booking with you.
These 5 most effective hotel room pricing strategies to boost revenue are tried and tested. By applying these hotel pricing strategies, you are able to generate more revenue for your hotel. How would you plan your hotel room pricing keeping these tips in mind? Let us know in the comments below.
