theachoem
commented
1 year ago Remaining for 1st scope
- [ ] Update adjustable when their eligibility rules are updated Eg. Rule update date, so vendor listing price should update price too.
- [ ] Spec to be included
- Rule on same day?
- Rule on different date
- Rule changed?
- etc.
Pricing model
Every hotel has its own unique room pricing considerations depending on:
Room Type:
Pricing model:
Room occupancy ( person ) :
Extra-person charge: Hotels usually charge for guests beyond 2 adults, because they are using the facilities and resources of the hotel. For example, beds have to be replaced, people cleaned up after, security provided, extra hot water used, electricity, pool cleaned, garbage removed and paid for, etc. All of this is based on how many people use the facilities
Many US hotels do not charge anything for children who share the same room as adults as a courtesy.
Part of the reason is that it takes housekeeping longer to clean a room when more people have used it - more mess to clean up, possibly more beds to make. Things like toiletries, sheets, and towels get used up or need to be washed. But the biggest reason at many hotels is if breakfast (or other meals) are included, there is more cost for food, food prep, serving, busing the table, dishwashing, etc.
Safety/emergencies— say there's a fire, we need to account for every guest to make sure everyone has evacuated.
Rewards upgrades- personally I always call the guest before upgrading them just in case they need the room they book. Some members book the lower rate room in hopes of an upgrade and some need two beds this time instead of their usual single.
3rd party booking- no matter what room type you believe you were 'guaranteed’ shows up on the hotel's system as a standard room. Meaning if you need a room with two beds but you're mad because you got a single bed and your 4 kids are with you so you demand the room you were 'guaranteed’ but were sold out so you got what you got honestly.
If you would have put 4 children 1 adult on the reservation, I would have known you definitely need something more accommodating than a single queen room.
Customer:
Pricing Policy
The cancellation policy impacts hotel revenues. The best is to offer a standard rate with free cancellation up to 48 hours before arrival for all these travelers needing flexibility in their decision-making.
For example, business travelers are willing to pay higher rates with flexible cancellation policies because their plans can change last minute. On the other hand, families with kids can choose to spend less but with a non-refundable cancellation policy. Usually, they plan their holidays well in advance, and there’s a smaller chance their plans will change.
During the pandemic, hotels needed to adapt their cancellation policy due to travel restrictions. That’s how the flexible non-refundable rate is born. These rates include discounted room pricing, with the flexibility to change the dates of stay for free.
Forcasting
Forecasting pricing in revenue management means predicting future demand. It’s also related to dynamic pricing. You might think predicting the future is impossible, but revenue managers are doing it every day.
How? By analyzing hotel historical data and real-time market data.
If you want to stay ahead of the competition, it’s necessary to be proactive in hotel room pricing. Following what others are doing is not enough and can damage your online reputation and revenues.
Upselling and cross-selling pricing
Price Rule Design