Ideally a hotel would always sell all rooms at the highest rack rate.
As this is rarely possible the challenge is to find the right price to utilise a hotels capacity in the most profitable way possible.
In a nutshell the idea of yield management is to achieve the highest selling price while maximising occupancy.
What can small hotels and accommodation providers do?
A refined pricing structure is a very effective way to maximise profit.
Use different rates and discounts to offer the right price at the right time to the right customer. Common price strategies are:
- Standard pricing /rack rate
- Seasonal pricing
- Day of the week pricing e.g. weekend/ weekday
- Last minute rates
- Early bird rates
- Long stay discounts
- Promotional prices
- Refundable/non refundable prices
- Benefits for loyal guests / voucher codes
- Group or agent rates
Beds24 has a yield optimiser function which automatically adjusts prices based on remaining availability and time before check-in. Prices can be adjusted up if demand is high or down if demand is low. Multiple rules can be created and will work together.
If you are not yet using Beds24 you are welcome to use the free trial to test without obligation.