January 16, 2019

Linear and Non-Linear Pricing Strategy In Hotel PMS

Having a definite pricing strategy for your hotel is imperative for carrying out the hotel transactions smoothly. The effectiveness of the pricing strategy also determines the revenue generations for your hotel.

There are many different types of pricing strategies which can be applied as per the hotels' requirements.

Linear and Non-linear pricing are among the most important pricing strategies for your hotel business.

Here's how you can apply Linear and Non-linear strategies easily by Hotel PMS.

Linear Pricing Strategy

In the linear pricing strategy, you can apply a linear rate to your base price.

For instance: The base price of your room is 2000 units for two adults and a child to stay in the room.

If any of your guests want to use the same room but with an extra child and adult, then the rate will increase by fixed amount. Let's say the fixed amount  for an extra child is 200, for extra adult, it is 500 units.

The total room charge in such a case will be 2700 units.

If there are two extra adults, the price will be 3000 units.
If there are two extra children, then the price will be 2400 units.

In a linear rate pricing strategy, the rate for the extra adults or extra children is specified, fixed and the same for all the extra adults or children.

Non-Linear Pricing Strategy

Non-linear Rate Price can be applied to your base price by using this strategy. In simple words, the non-linear price rate doesn't involve a fixed extra charge for your services.

For example, The base price of your room is 2000 for two adults and a child to stay in the room.

If the guests bring in one extra child, you can charge an additional 300 units. If the guest brings in another child, you can charge in another 400 units. It goes the same for extra adults as well.

The non-linear price rate is flexible and can be edited to suit the requirements of your guests.

Having an automated pricing strategy for your hotel rooms saves you from the trouble of setting your room rates again and again.

It makes price management easier for you and your staff, resulting in speedy services and better guest experience.

Our Hotel PMS, Pure Automate provides you with the linear and non-linear pricing strategy for your hotel room inventory.

We also offer a range of cloud-based Hotel Management Solutions like the Property Management System, Online Booking Engine and Channel Manager.

Contact us to know more about our solutions and services.

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