What to take into account when setting room rates?
Setting room rates for accommodation facilities used to be much easier in the past. One could just drop standard rates of peak seasons during off-peak times in order to keep occupancy rates at the highest. Today, however, increasing competition and easy access to all the information, including rates, about a facility guests will accommodate require critical attention to decisions regarding room rates.
Rapidly-changing circumstances have created the need for instant updates on room rates. If you manage your facility on HotelRunner, there is not much to worry about because the service offers you flexibility in a wide range of areas.
You need to take into account some issues, though, in setting and managing room rates. Here are some of them…
Profitability, the primary goal
One should not miss that the primary goal is to keep profitability at its highest while setting room rates. Given that occupancy rate is not a criterion alone, it is of utmost importance to calculate which circumstances, prices and occupancy rates could bring the most advantageous results for you.
Being able to identify different guest categories
Expectations and accommodation periods of each guest category may vary. If you identify those different guest categories, you can adjust room rates in a more efficient way according to their check-in and check-out dates. It could also be beneficial to take into account the room rates those guest categories can or cannot afford.
Competition, as in every industry including the accommodation industry, is a factor that has a direct effect on the rates. However, every hotel is equipped with unique facilities, which results in varying room rates from different hotels in a specific region. Therefore, as much as closely following up competitors’ pricing policies deserves appreciation; do not skip the facilities that might influence the value of your own premises while setting the room rates vis-à-vis competitors.
Preparing special packages
Even though a decline in room rates during off-peak times is unexceptional, bringing together the paid services you can offer beyond the room rate and offering them as a package might be a good idea. If you charge services like SPA or a’la cart restaurants additionally, for example, under normal circumstances, you might include the prices of such services in the room rate and offer an attractive price during off-peak times. This could help you sell more efficiently with more profitable figures even if you drop the price.
A Must Do: Measuring
The way to making the best decision by taking into account the afore-mentioned issues while setting room rates is measuring. Knowing different guest categories and understanding their purpose of, and expectations from, a travel could have an effect on a profitable determination of the room rates. Asking your guests for information for these purposes would be helpful albeit difficult. However, you can be in touch with your guests or potential guests on your web site and social media pages, and collect such valuable information.
As mentioned above, making price adjustments in a dynamic way has gained great importance today. If you use HotelRunner to meet the needs of your premises, it is easy for you because HotelRunner offers you a platform where you can provide flexible price policies. Moreover, you can easily manage the rates not only on a season basis, but also monthly, weekly and daily, as well as based on persons or channels.
We invite you to sign up for free before it is late and evaluate what HotelRunner can offer you and your premises.