Are your hotel rates perceived as fair?

In the lodging industry revenue managers set prices. Customer-centric revenue managers, go further. They make sure their prices are fair. The difficulty comes in deciding exactly what constitutes a fair hotel price.

The difficulty for them, and for you if you are responsible for setting prices in your organization, comes in deciding exactly what constitutes a fair price. The question is important for several reasons because:

- Buyers must be convinced the prices they pay are fair if they are to become loyal, repeat customers.

- The front desk and sales staff at a hotel must be convinced the prices they charge guests are fair if they are to be effective salespersons for the business.

- Regulatory agencies must be convinced prices charged are fair or they may be motivated to increase their oversight and control of an industry.

- Actually, while the issue of what constitutes a fair price is pretty interesting, even more interesting is the question of who decides when a price is fair.

Sellers tend to think fair prices reflect their cost of doing business and their profit objectives. Sounds reasonable, but its backwards. That’s because in the long run it is always the buyer, not the seller, who determines the fairness of a price.

Get the full story at Hotel Online

Posted by admin on Nov 21st, 2010 and filed under Hotel Marketing, Hotelnews. You can follow any responses to this entry through the RSS 2.0. Responses are currently closed, but you can trackback from your own site.

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