Hotels Pricing Matters

Hotels should price their clients right.Hotels provide their customers with a comfortable staying should they wish to rest from the day-to-day routine and stress.

But are the hotels charging their customers right or do they overcharge in many cases?

It is a fact that some hotels over exaggerate when charging their customers.

This overcharging takes place either due to the hoteliers failure to perform cost and revenue management or it is done deliberately to rip off clients.

All hotels should offer services they can afford to

There are cases where a hotel can overcharge, not offering the products, services, or room comfortability, as initially advertised on a website or other tourism online portals.

Are you the owner of a hotel or a chain of hotels? Act today before it’s too late and prior to your clients decide to expose you negatively via online feedbacks, or word of mouth.

Focus on your cost and revenue management plan, develop a pricing strategy that could be suited to your hotel’s standards and the clients’ standards.

As the hotelier, you should aim to allocate your various departments, such as your food and beverage, housekeeping, front desk, maintenance section, and other relevant sections, right.

Therefore, the right allocation of the resources both human and equipment operating for each department should be absorbed in such a way that can be captured and arrive at the final price for each room type.

The major departments where cost should be absorbed from, are:

1. Front Desk (reception)
2. Food and Beverage (restaurant, bar, cafe bar, etc..)
3. Housekeeping (cleaning department)
4. Administration (accounting, management, etc..)

The cost for each department takes into consideration, the salaries, equipment depreciation, time, and other relevant cost factors.

Once the cost from the above departments or sections is absorbed right, the hotelier can set proper prices for the rooms, depending on the type, and products or services offered additionally on the price.

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