8. Pricing Rooms for accommodation suppliers
Pricing strategies allow hotels to charge different room rates for the same or similar rooms according to customer’s characteristics and needs. For example, a senior citizen traveller looking for a Seniors discount has different needs, different characteristics and a different willingness to pay than a corporate traveller has. As a result they may book the exact same room but pay a much different price. Along with the different price may be certain booking requirements or unique restrictions.
Once the market segments are defined for a hotel, it is up to the revenue director, along with the director of sales, to ensure a healthy mix of the segmentation. This is a key component to optimising a hotel’s pricing strategy and approach. Since hoteliers offer multiple rates for essentially the same room type it is critical to understand the importance of pricing and all it encompasses. This course explores strategic pricing and the various pricing-related elements.
This course is created by Hoteliers, for Hoteliers. The leaders in hotels around the global have worked together to create a curriculum for people looking to grow their careers in revenue management. This course was developed by the HSMAI Revenue Advisory Board with the kind support of LodgIQ, “Revenue Management Reimagined”.
You will learn:
· How to price your different room types (from Study Guide)
· Different types of pricing explained – what and why
o BAR, Rack, Group, Corporate etc
o Tactical vs Strategic pricing
o Mobile only pricing – why?
o Wholesalers, Static vs Dynamic rates
o Corporate & Event
o Opaque Pricing, Length of Stay Pricing
o Loyalty clubs and Closed User Group rates
o Room Type premiums
o Packages/ promotions/ Discounting - Discounting –what additional volume required if I discount my price? Is a lower price generating new demand?
· Understanding the impact on discounting -How to calculate Occupancy needed to offset discounts
· Understanding the influences on pricing including decoy and anchor pricing
· Lead time and its impact on pricing
· Displacement Analysis
· Technology available to monitor and manage pricing
Who should do this course:
· Those pursuing the HSMAI Revenue Ready certificate
· This course serves as a learning base for those who wish to do further study on revenue management to get into a revenue role;
· People just starting in the revenue department will benefit from learning how revenue people can influence booking volumes at their property.
· This course can be a standalone course for People wanting to learn about the pricing strategies hoteliers use to increase profits. You could be an asset owner, management company, holiday rental agent or hotelier wondering if it’s worth investing funds into revenue management systems, or rate systems, and dedicated revenue management resources.
· Vendors or partners in the travel & tourism industry interested in how accommodation suppliers plan their business volume.