Finding the right Hotel pricing strategy can be hard if you are new in the hospitality business. Moreover, for someone who is without any training in revenue management, failing to implement these tactics can be the difference between struggling from month to month and being in profit.
However, don’t worry, below there are three simple ways for you to find out the right Hotel pricing strategy.
Research and Match your Competitors
You probably have researched your competitor pricing before you start your Hotel business. Also, it is not something unethical to do very often. Leaving ego aside, this is what distinguishes between a smart revenue manager from the rest.
Matching your competitors is one of the strategies that lots of hoteliers are using. If you are planning on doing this, at least offer people a better value for the same amount of money.
Here is how it usually works:
Let us take booking.com for example: What most people would do, even we when we are traveling is looking at several properties that price match.
The first thing that everyone notices are the pictures! High-quality pictures make that first yes impression that counts something in psychological terms.
The second people notice the value for the money. How they can get the best deal for that amount of money.
What this Hotel pricing strategy means for you is this:
Research and price match all of your competitors on the online travel agencies that you advertise. Offer at least one or two things for free more than them.
Even if you beat only a few competitors with this, you still are ahead! So trust me, you can do this without sacrificing the budget.
For example offer Free Ironing, Washing, Room service, Newspaper or some kind of service that doesn’t require you to invest extra money.
You see, all of these services is what your staff is already doing, and all it would take is several extra minutes of their paid time.
Go above the competition
You should always test if going up with prices can work for the property you own.
However, first, make sure you increase your chances with this tip below.
Here is how:
Make sure you have amazing pictures that are selling the dream. Pay for someone to make them look as good as on the magazines.
You will notice that big brands of Hotels are using this strategy a lot. They put terrific pictures of food, bed setup, amenities or just a merely unique and dreamy view of their Hotel. Every property has something unique to offer and can quickly be set up for this.
In fact: Tripadvisor got punked by this amazing strategy when a fake restaurant got ranked number 1. Why? Well, it was mostly because of selling the dream and those fantastic food pictures? Trust me; those are not food pictures!
It doesn’t mean that you should use some wrong ways to get the most attention possible. It is possible to show the uniqueness and the value of your Hotel and to be viewed as elite accommodation, with the right pricing strategy that goes above your competitors.
Test and implement this Hotel pricing strategy with lower rates
This doesn’t mean you should lower the prices of all of your rooms!
What you should do instead is to test this strategy with few rooms.
The best part?
When someone searches a property on google or some online travel agencies in your area, he will be shown something like this: Pricing starts as low as 20$ for one night in New York.
The goal here is to get more clicks to your property and then convert those potential visitors with bonus amenities and beautifully made pictures!
Also, you could use these 10 tips for positive Hotel reviews, which ultimately leads to more revenue
Track all of the goals without damaging the budget.
Your goal as a Hotel revenue manager is simple: Tracking what works and what doesn’t work.
Even if you have few apartments and you have no expertise in revenue management, you should test these Hotel pricing strategies to stay ahead of your competition.
Don’t forget always to research before you test something.
Do a survey and appreciate your business.
I hope that for you it would take only one Hotel pricing strategy can bring you some extra revenue.