08 Jul How to make a decision about hotel rates
Why do hotel prices change constantly? What data is the Revenue Manager using to make a decision about hotel rates? Why is this Saturday more expensive than the next week’s one? These are the typical questions that every curious traveler does. If you still do not know how to maximize your hotel, resort, camping… You can just continue reading this blog post!
‘But my hotel is not located in a big city … using seasonal rates should be enough’.
It is difficult for you to maximize your hotel if you sell all your rooms at the same rate, and even worse if you sell at the same rate every day on ‘a season’ or the whole year. Do you know any hotelier that is not interested in improving the hotel performance or the actual income?
The rates vary constantly depending on the demand, the offer, the location of the hotel, the competition, the weather, the popularity of the destination …
How to make a decision about hotel rates:
Just to make it clear, there are no universal rules to choose the most accurate selling rate. Any type of accommodation generates a large amount of data, regardless of the type of accommodation, customer, size or location, and choosing the relevant information about the performance of your accommodation and defining a clear objective is key.
Copying the competitor rates is not a wise decision, as you probably don’t have the same audience as your competitor, the same brand, the same segmentation, or the same promotions… So it won’t work the same.
First of all, in Fernandez Consultancy we develop an ‘in-depth’ audit based on the statistics of every individual property, in order to understand the hotel patterns and the different opportunities available to maximize the hotel income.
Once we have that data, next steps are:
- Create the price ranges for your rooms,
- a sales forecast for the next 12 months (your goal), and
- a tailor-made strategy (how to achieve your goal).
Developing and implementing your strategy is a key part to manage your revenue efficiently, but it is also crucial to monitor sales are in line with the forecast to ensure the strategy is working.
If you want to tell us your experience and let us help you, click here.