There are many hotel pricing strategies that you can use to increase your revenue. Having the right room rates plays an important role in generating revenue. It is boosting occupancy, and gives you the ability to increase profit. The goal of having the right price for the right Airline
Third Parties
Some Airlines like to use Third parties for the ease of outsourcing. The problem is that a hefty amount of revenue goes from your hotel pocket to theirs in the form of high commission. 10% is very common. Hotels and Airlines give large intermediaries room for business, and spend their lives fighting the side effects. Loss of direct relationships, transparency and independency as a result. Unfortuately, this is especially hurtful in the post-pandemic rebound, when hotels are overflowing with guests.
Your Business Need
Hoteliers should always consider is the value of the services they offer. It is useful to have a range of rooms at different prices so you can target different Airline segments. Keep in mind the competition’s prices, your occupancy and seasonality. If you haven’t done so, update your Free Croowy Profile. To make it easy on you, your data is pre-populated.
Be mindful of the supply and demand in your local market. Make sure that you don’t go way above the market prices or way below for the crew pattern that fits your business need.
Understand your hotel’s occupancy data, revenue, room rate and average spend per room for the last couple of months and previous year. Have a look as well at demand, events and fairs. It is one of the most important strategies for hotels.
Upselling & Cross Selling
Upselling & Cross Selling useful tool in any industry, but it is especially useful when it comes to Airline Crews. You can even give crews the option to book leisure rates. Just fill out the questionaire in your profile. Succesful in generating more revenue are “add in” services for the crew and entertainment discounts .
Encourage Airline crews to book additional services, such as spa services, tours, and airport transfers. The idea is that once you welcome the crew you can encourage them to enjoy your hotel services even more.
Having the right price for the right business.
It surely is one of the most commonly used revenue strategy in the hotel industry and has a huge impact on a hotel’s bottom line.
If you do it right, you’ll suceed in quoting the best prices based on demand and expected occupancy.
