Why Hoteliers Need to Re-Strategize Their Hotel Pricing 1

Why Hoteliers Need to Re-Strategize Their Hotel Pricing

The hotel industry has been among the hardest hit over the past year and a half. Now, with the reopening looming and more travelers getting back on the road every day, it can be tempting to take a “make up for lost time” strategy. However, increasing your prices 100-200% in an attempt to recover your losses faster is not the solution. That is a good way to miss out on the returning travelers. How can you price your rooms to capitalize on increasing travel in the second half of 2021?

Attracting Guests Through Reasonable Pricing

Seeing competitor hotels doubling or tripling their prices may encourage you to follow suit. However, keep in mind that those numbers don’t tell you how many rooms are empty. By using historical data, including the last 30 days as well as pre-pandemic pricing, you can determine the optimal prices to fill the rooms you are currently using.

If you want to increase your prices, there is a better way to do it than to simply price gouge, like many hotels are currently trying.

A Better Way to Increase the Value of Each Guest

If you want to earn more on each hotel guest, then it is time to add some value to the stay. Create packages that include meals, drinks, local experiences, extra amenities, in-room gifts, spa treatments, and the like. Your markup on these can add the extra revenue you are looking for without signaling to travelers you expect them to pay for the days they didn’t travel last year.

Get the Supplies Your Hotel Needs

Besides the valuable advice in our blog, A1 American also provides hoteliers with necessary products, including essential care items like hand sanitizer and masks. Call us at 833.205.2200 to learn more or start an order.

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