Prices
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Sales prices for the hotelrooms
There is some information on this subject on the page decisions. Now let's have a closer look at the sales prices for staying in the hotel.
Looking at the sales prices of your hotel the management should decide on last-minute and a rack rate price for the two options weekdays and weekend days.
The idea behind the two prices is, that it enable you as a management to think in a price-“range” for your hotel instead of one single figure. So, reasoning from your strategy, you might think of a price range that fits in best with your strategy. From this min/max range an average price is calculated that is being used in the calculations. Very important is the explanation in your Explanations form in each year on how exactly you plan to use concepts like premium pricing, discounting, flex pricing, psychological prices, revenue management, etc. etc. So size the opportunity to explain your pricing strategy and a good explanation of your choices in combination with your strategy will enhance your occupancy rate.
Rising prices?
You can increase your price-range (the max de-/increase per year is 20%, see Finance and room prices) instead of changing the last-minute and rackrate price separately. This price range will be compared to the average in the market, and customers will react upon hat.
Keep in mind that your revenues, of course, consists of the (average) price times the number of sales. On the other hand, you have your net result (revenues - minus all costs) which also depends on your costs. On the page operating review there is a basic explanation on the structure of the costs and the way you can, or cannot influence them.
