Tactics For a Successful Pricing Strategy & Why Should You Care | Ep. #290

The goal of a hospitality property pricing strategy is to maximize revenue while minimizing vacancy rates. In this episode, I talk about why this is important.The Basic Principles of Room PricesWe live in a world where travellers have to make decisions, and the decision of what hospitality property to stay at is no exception. With so many choices available, it can be difficult to stand out from the crowd and provide potential guests with the best value for their money.There are many factors that go into pricing a hospitality property room. The location, amenities and quality of service are all important factors.However, one of the most important aspects is demand. Properties can charge more for rooms if they know they can sell them out quickly or if there is high demand during certain times of the year.What is a hospitality property pricing strategy?A pricing strategy is a set of rules that help properties decide how much to charge for rooms. It is a crucial part of the marketing strategy and can be used to attract customers or discourage them.There are two main pricing strategies: Cost-based pricingCost-based pricing strategies are the easiest to implement. Hoteliers/ innkeepers simply calculate the sum of all expenses involved in running their property, divide that cost by the number of rooms or units, and then markup each unit or room based on the profit they hope to make.Demand-based pricingDemand-based pricing, sometimes called customer-based pricing, is where the hotelier/innkeeper adjusts a room or unit price (often in real-time) according to customer demand and the perceived value.Other factors that affect the pricing of a room include:- The location and type of the property (luxury, budget, etc.)- The time of year and day of the week- The quality and reputation of the propertyContinue watching or reading and I’ll share what else you need to consider when developing your pricing strategy...⇒ TO READ OR LISTEN TO THIS EPISODE ON KEYSTONE HOSPITALITY PROPERTY DEVELOPMENT:https://keystonehpd.com/tactics-for-a-successful-pricing-strategy-why-should-you-care-290Get your copy of the “How to Improve Your Hospitality Properties Success” ebook? https://keystonehpd.com/how-to-improve-your-hospitality-properties-successGet Your INNsider Tipshttps://KeystoneHPD.com/INNsider-TipsJoin one of your private groupshttps://keystonehpd.com/private-groupsSay hi on socialFacebook: https://www.facebook.com/KeystoneHPDTwitter: https://twitter.com/KeystoneHPDLinkedIn: https://www.linkedin.com/company/keystone-hospitality-developmentListen to The Hospitality Property School PODCAST herehttps://www.keystonehpd.com/hospitality-property-school-podcastsYouTubehttps://youtu.be/aeRztygMC8AA Division of Keystone Hospitality Property Development