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Hotel Pricing Strategy

1487 Words6 Pages

In the hospitality industry, quality standard is the most prevailing value for a company in its delivery in reaching the high standards towards a great guest experience. It is essential for the management to examine what the customers are after and look for as to achieve the best quality standards. Service is the difference-maker for and to the guest.
Generally hotel firms target a wide choice of clienteles from vacation to business travellers. One of the biggest challenges to the hospitality marketing is satisfying the different mind-set customers. The needs and wants of the different customers will change over a period of time. Certifying that policies and procedures are customer friendly will be the step to upraise the service level.
The …show more content…

Thus, travellers may be impacted by some factors such as the rate of the hotel. It is the shopper’s view of the differential value of one product versus the features of other products, or the reference value of prices of other competing products. Pricing strategies are to be given attention as they will determine the company’s profit and survival. The customer should be charged according to the value services being provided by the hotel. Three basic pricing strategies are: market skimming pricing, marketing penetration pricing and neutral pricing, must be taken into …show more content…

Targeted groups may differ in each hotel but most of these groups prefer locations which are attractive and locations usually located near to different transport links. It is also crucial to be aware of the tourist attractions within the hotel locality. If hotels can draw high occupancy throughout the year without relying on seasonal tourism then diversity can be beneficial.
Promotion is the best way to notify others about the various attractive offers, deals such as discounts for online bookings, providing rooms with complimentary meals, free city sightseeing and tours, giving good deals for people staying for a longer period and services provided in a hotel. (Larry R. Weatherford, 2003) It helps to influence more and more potential customers to the hotel. Promotion through advertising can be done in both printed and electronic media. Issuing online and offline press releases in a regular manner, and communicating through newsletters with organisational stakeholders will hence in the performance of the hotel towards achievable

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