Difference between revisions of "Last-minute price"
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''→ Go! [[:Category:Hotel info]]'' <br> | ''→ Go! [[:Category:Hotel info]]'' <br> | ||
== What is a last-minute price?== | == What is a last-minute price?== | ||
It is the lowest rate or published tariff defined by the hotel management for a particular room category/type. This is what generally is shown on the tariff sheet of the hotel, on the website etc. especially to attract potential customers. These rates include all the maximum discounts, so they are | It is the lowest rate or published tariff defined by the hotel management for a particular room category/type. This is what generally is shown on the tariff sheet of the hotel, on the website etc. especially to attract potential customers. These rates include all the maximum discounts, so they are the minimum price is most situations. So to say, you could consider them 'lowest acceptable' from the management perspective. When working with minimum prices, often the additional spending, in the restaurant e.g., should make the booking worthwhile. On occasions, rooms are 'sold' below the [[cost price]] of the rooms; not having them occupied means not even having a contribution in your fixed costs. So this is also a reason to have (a number of) rooms sold at this price. <br><br> | ||
The counterpart of this pricing is the [[rack rate]]. If your hotel has a good idea on this, explain it in your decisions to your coach and make calculations. In your decisions other options don't exist. More on the pages [[prices]] and [[Year 1-2-3-4|Year 1-2-3-4 decisions]]. The relation between cost price, sales price and profit is to be found in [[RevPAR]].<br><br> | The counterpart of this pricing is the [[rack rate]]. If your hotel has a good idea on this, explain it in your decisions to your coach and make calculations. In your decisions other options don't exist. More on the pages [[prices]] and [[Year 1-2-3-4|Year 1-2-3-4 decisions]]. The relation between cost price, sales price and profit is to be found in [[RevPAR]].<br><br> | ||
More info online on sites like: | More info online on sites like: | ||
* [http://hebs-cms.s3.amazonaws.com/1492126425/cms/pdf/mag/11%20-%20HotelsMag%20-%20The%20Pitfalls%20of%20Last%20Minute%20Sales%20in%20Hospitality-FD.pdf Good article on this issue] or | * [http://hebs-cms.s3.amazonaws.com/1492126425/cms/pdf/mag/11%20-%20HotelsMag%20-%20The%20Pitfalls%20of%20Last%20Minute%20Sales%20in%20Hospitality-FD.pdf Good article on this issue] or | ||
* [https://www.xotels.com/en/revenue-management/revenue-management-book/price-sensitivity All | * [https://www.xotels.com/en/revenue-management/revenue-management-book/price-sensitivity All kinds of price systems]. | ||
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Revision as of 11:48, 29 August 2023
→ Go! Category:Hotel info
What is a last-minute price?
It is the lowest rate or published tariff defined by the hotel management for a particular room category/type. This is what generally is shown on the tariff sheet of the hotel, on the website etc. especially to attract potential customers. These rates include all the maximum discounts, so they are the minimum price is most situations. So to say, you could consider them 'lowest acceptable' from the management perspective. When working with minimum prices, often the additional spending, in the restaurant e.g., should make the booking worthwhile. On occasions, rooms are 'sold' below the cost price of the rooms; not having them occupied means not even having a contribution in your fixed costs. So this is also a reason to have (a number of) rooms sold at this price.
The counterpart of this pricing is the rack rate. If your hotel has a good idea on this, explain it in your decisions to your coach and make calculations. In your decisions other options don't exist. More on the pages prices and Year 1-2-3-4 decisions. The relation between cost price, sales price and profit is to be found in RevPAR.
More info online on sites like:
→ GO! Top of this page
