Knowledge on your competitors' rates and market demand for specific dates together with your property’s historical data makes for a powerful combination when deciding on your pricing strategy. What do you need to keep in mind when making this decision?
There are many factors to consider when you are setting your prices. It all starts by asking the right questions related to your market and your product.
Assess your market conditions
- How many days with occupancy rate higher than 95% did you experience last year?
- What type of guests visit your property throughout the year? Think of business travelers, families, groups etc.
- How many direct competitors do you have and who are they?
- Which channels are you using to sell your rooms?
Assess your product
- How do you decide on the different room types (bed type, size, amenities, view etc.)?
- What type of facilities does your property offer? Think of restaurant, business, parking etc.
Start with asking these questions, if you have not already, and decide on a pricing strategy that works for your business and your guests!