The hospitality is growing more and more competitive day by day.
Offering impeccable services at the most appealing prices for the guests is becoming increasingly difficult.
To help hoteliers tackle this compelling issue, there are various types of revenue-boosting pricing strategies for hotels which also keeps the guest happy.
One such significant one is dynamic pricing for hotels.
Let's explore dynamic pricing for hotels in detail over here:
There are distinct types of pricing strategies which help in improving the revenues of the hotel and make the most out of your hotel room inventory.
You can adopt the strategies that best meet the requirements of your property.
If you are up for boosting your hotels' revenue without making any changes to them, then you can consider dynamic pricing for your hotels.
What is Dynamic Pricing?
Dynamic Pricing is exactly the opposite of a Static Pricing.
In Static Pricing, the price of your hotel room inventory remains for all days, seasons and events. The price of your rooms is fixed.
Whereas in the Dynamic pricing strategy the price of your hotel rooms is flexible.
It can increase as well as decrease based on the ratio of the demand and supply of your hotel rooms to your guests.
How can Dynamic Pricing be Used?
Dynamic Pricing can be used to price your hotel rooms based on the demand and supply of your rooms.
Let's say that on weekdays a basic room at your hotel costs $150/per night.
If you apply the dynamic pricing strategy to your property on the weekends when there is a higher demand for rooms, and sell the same rooms at $175/per night.
This way you get a boost in your revenues by using the same set of hotel room inventory by applying dynamic pricing.
When can Dynamic Pricing be Used?
On Weekends or On Weekdays, whichever time frame brings more guests to your hotel.
Special Days and Festivals which are celebrated which are sure to bring people flocking to your city or town.
Every place has its own holiday seasons. Be it spring breaks or Christmas holidays, use these vacation periods to apply dynamic pricing.
For special events in your areas which will bring a lot of people to your doors. This could be a music festival, a sports tournament, or a concert.
Seasons which attract a lot of tourists to your locations. If your hotel is near a beach, you will get most visitors in the summers. Use these seasons to cash in some extra money.
What are the Benefits of Dynamic Pricing for your Hotels?
If you use Dynamic Pricing for your Hotel rooms that your revenues go up. You earn more revenue even if you have less occupancy.
You can offer the same rooms to people with different kinds of mindsets. In low-occupancy times you can offer the rooms at a lower price. This will keep your price-conscious guests happy.
During high demands time when you raise the price, people who are looking for the services will be pleased to stay with you, especially if there is a big event around your location.
Thus dynamic pricing strategy increases your hotels' revenue along with meeting the requirements of various types of guests.
How to successfully plan and execute the dynamic pricing strategy for your hotel rooms?
Proper planning is important before applying the dynamic pricing strategy to your hotel inventory.
You can do that by analyzing the high demand and low demand periods of your hotel in the past. All these data can be easily available to you if you have a Property Management System.
A Hotel Management PMS system will give you customized reports and analytics so that you can easily track your high demands and low demands.
If you are interested in applying the dynamic pricing strategy for your hotel rooms regularly, then you can use the Yield management for hotels which comes inbuilt in Pure Automate: A cloud-based Hotel Management System.
Yield Management automatically raises the price of your rooms, based on the room occupancy of your hotel.
In yield Management, the price of your rooms goes up as the occupancy increases.
This way you get more value from your hotel rooms on a regular basis.
This eliminates any sort of misunderstandings or delays which can occur if you use the manual systems for setting the prices.
As the process is automatic, you save time and boost the productivity of your staff members as well.
There are many hotel pricing strategies out there. You can experiment with them and then pick the one that works best for your hotel.
Also, you don't have to limit your prices to a single strategy, you can update and switch them around for getting the maximum benefits for your hotel.
If you want to know more about the systematic management of your hotel booking, reservations and revenues, contact Pure ITES.
We offer Property Management System, Online Booking and Channel Manager for Hotels.
Our cloud-based hospitality products are designed and developed to make hospitality management easier, smarter and quicker for all the hoteliers.