For hotels and other accommodations to grow and succeed, the management must understand fundamental practices. One of them is to set room prices through an industry-based hotel pricing strategy. Whether you are a businessman expanding your business in the hospitality industry or a first-time hotelier, you must carefully plan and decide on your hotel pricing strategy to attract guests and be competitive in the market.

You must consider various aspects when deciding on the prices of your rooms as they contribute a major part to your hotel’s financial returns. Different factors can influence your hotel pricing strategy but always remember to make your property worthy of the price rates. To guide you, here are 6 factors that you must always consider in your hotel pricing strategy.

6 Factors That Can Influence Your Hotel Pricing Strategy

1.  Hotel Location

Guests always consider the location when they are planning to book a hotel. Any nearest attractions to your hotel can attract visitors who do not want to travel far just to reach those places. Famous hotels are situated near major attractions like theme parks, malls, restaurants, or tourist spots. Your hotel’s location in these attractions can affect your hotel pricing strategy and be a reason to increase your room rates.

2. Available Technology

Fast Wi-Fi, Smart TV, and other state-of-the-art entertainment systems can be available in your hotel but the latest technologies can enhance customer service. If you are using software programs that can completely safeguard the personal data of your guests, you can use it as a factor when planning your hotel pricing strategy. Cybersecurity is important for your visitors. They will trust a hotel when they see that it can protect its guest’s information against hacking.   

3. Types of Hotel Rooms and Amenities

A hotelier must consider the different types of rooms and their amenities before assigning a price rate. The prices of various rooms are dependent on the amenities being offered for each type. Your hotel pricing strategy increases for extra amenities and services. A single room that contains one bed, work desk, and TV is different from the price of a studio hotel room which has a living room, kitchen, and bedroom. Be sure to match your price rates with the hotel rooms and the inclusive amenities on them.

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4. Cleanliness

Cleanliness is vital to your hotel’s image. This can have an impact on your hotel pricing strategy. If your business is investing to maintain good hygiene, the prices of rooms can also increase. Remember that poor hygiene results in negative reviews by dissatisfied customers. It may keep your guests from returning and you may also lose potential visitors. To prevent this, upgrade your hotel’s level of cleanliness by investing in cleaning equipment and supplies that sanitize and disinfect. Train your hotel staff on how to inspect each room for pests. If there are infestations, hire the service of a professional exterminator to stop pest problems.  

5. Prices Of Competitors

Consider the prices of your competitors when you are deciding the price rates of your hotel rooms. Your rates must be at a competitive level with other hotels that offer the same type of room with similar amenities and services. Setting higher prices than other hotels will result in unoccupied rooms because customers will not book in a hotel that is charging more than others. 

6. Seasons

Peak and weak seasons can affect hotel pricing strategy. This is due to the fluctuation in the number of visitors to a travel destination. Hotels increase their rates during peak times of the season while they charge lower when there are few visitors.

ALSO READ: Hotel Management Tips to Improve Your Competitive Advantage

Several factors can affect hotel pricing strategy. They can guide you in setting the hotel room prices. As a hotelier, you must carefully decide on the prices of your rooms since they are part of your business’ revenues. Make sure that the price rates are at a competitive level with that of other hotels which offer the same room types, amenities, and services. Your hotel must be worthy of the price rates that you offer to customers.

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