Maximizing Revenue and Occupancy Through Hotel Room Rate Strategies
How to Maximize Revenue and Occupancy With Different Hotel Room Rates
Hoteliers use different rate plans to maximize revenue and occupancy. They can be difficult to keep track of, especially without revenue management technology. Here are some tips for implementing different rate plans and measuring their effectiveness.
Before making a reservation, always ask for the lowest available rate. This will help you avoid getting a “rate add-on.” In addition, wait to call until the desk isn’t busy.
Rates are based on double occupancy
Double occupancy is the term used to describe how many people a hotel room or other accommodation unit is designed and priced to accommodate. It is a fundamental concept that influences pricing, preparation, and booking policies. It also helps standardize pricing across the industry, making it easier for travelers to compare prices. Hotels charge for double occupancy to cover the additional costs associated with accommodating two guests, such as increased water and energy usage, cleaning, and wear and tear on furnishings. Some hotels may charge more for additional guests. These policies are typically explained in the terms and conditions of the reservation.
Rates are based on single occupancy
With the emergence of unique accommodations like vacation rentals and other alternative lodging options, hoteliers need to be more agile and responsive with their pricing strategies. This means implementing different rate plans and measuring their effectiveness. In addition to maximizing occupancy, hoteliers should also consider revenue per available room (RevPar), average daily rate (ADR), and room nights sold. This way, they can understand how different rates impact their bottom line. To maximize profits, hotels should focus on lowering rates during low seasons and making up for it with value-added products or services. To learn more, read our guide to different hotel rate types.
Rates are based on pet friendly
As more travelers include furry family members in vacation plans, hotels have stepped up to offer the perks that come with pet friendly hotel rooms. While upscale brands like Kimpton and Virgin Hotels have long been torchbearers of this trend with straightforward, no-fee policies at their respective chains, many independent hotels have also opened their doors to pets, showering them with Instagram-ready amenities and special pet dining menus. Terms, conditions, and fees vary by property, though, so always call ahead to confirm. Check out the best New York pet friendly hotels below.
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