In today’s Hyper(Guest)-Competitive hospitality market, the art and science of precision pricing have never been more critical. It’s not just about offering rates, it’s about offering the right rate to the right guest at the right time through the right channel.

This article explores the strategies, tools, and mindset needed to master precision pricing, driving both profitability and guest satisfaction.

Think of pricing as the heartbeat of your revenue management strategy. An optimized pricing model not only ensures a steady cash flow but also reinforces your brand positioning. Missteps in pricing, such as being too rigid or misaligned with market trends, could result in lost opportunities, sorry I mean Profit!!

By implementing precision pricing, hoteliers can shift from generic pricing to a dynamic, data-driven approach that maximizes revenue across various customer segments.

The foundation of precision pricing is knowing who your guests are and what they want. Successful hoteliers don’t just segment their audiences, they deeply understand them, by leveraging channels (like HyperGuest) with minimal impact on distribution costs.

By Channel:

Differentiate between guests arriving via direct channels, OTAs, B2B, or GDS. Each channel presents unique opportunities, costs and challenges.

By Travel Purpose:

Understand the nuances of transient versus corporate travelers, couples versus families, and repeat versus first-time guests.

By Booking Patterns:

Analyze booking windows, lengths of stay, and seasonality preferences to uncover actionable insights.

Crafting Tailored Rate Plans and Strategic Promotions

Tailored rate plans and promotions align guest preferences with your revenue goals.

To get started:

Types of Rate Plans

• Standard Rates: The bread and butter of pricing, but they must be flexible.
• Packages: Bundle experiences like spa treatments or local tours to enhance perceived value.
• Last-Minute Deals: Capture spontaneous bookings while maintaining control over your bottom line.
• Early Bird Discounts: Reward planners with compelling offers.

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Promotion Types

• Seasonal Offers: Leverage peak and low-demand seasons with creative campaigns.
• Exclusive Membership Deals: Build loyalty while generating revenue.
• Event-Based Promotions: Tap into holidays, concerts, or festivals.

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Here are a couple of practical examples to inspire action:

• Last-Minute Offers: Create a flexible room category “Run of House” (cheaper than Standard Room Type) discounted by a specific percentage off the BAR (Best Available Rate). Open its availability last minute only when necessary. This approach allows you to secure reservations that might otherwise be missed at higher price points, while maintaining the rate integrity of the Standard Room category.
• Geo-targeting: Develop exclusive rates and sales conditions for specific regions. For example, partner with local travel operators to boost market exposure or simply by favoring travelers from specific regions you are interested in increasing their share in your overall occupancy.

Harnessing advanced tools like HyperGuest Marketplace, will give you the possibility of a “Go-to-market” approach without limits and exposure, it is just up to you ;)

Remember, not all channels are created equal. Prioritize those that align with your strategic goals while minimizing reliance on high-cost intermediaries like OTAs.
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A successful pricing strategy requires flexibility, constant monitoring of market trends, and a creativity-data driven to pivot when necessary. By aligning your rate plans and promotions with guest needs and leveraging cutting-edge technology like HyperGuest (free to access for Hotels), you can ensure your hotel remains ahead of your competitor.

Ready to elevate your pricing game?

Reach out to the HyperGuest Account Management team at am@hyperguest.com for tailored advice.