I actually would like to rephrase this. I recommend to stop all online marketing spend. Just kick it out of your budget. Save some cost for a change. I simply would like to take back what I wrote in previous blog posts, and what I said during any of our seminars and workshops about hotel internet marketing and social media marketing. I now run a 100 room hotel and I have got it all figured out.
The objective of rate parity in hotels is to encourage consumers to book direct. They should not find any advantage of booking via a third party website over making a reservation on your own hotel website. Learn in this weeks article how to get organized and use rate parity as a hotel revenue management tool.
Don’t forget that the price is a Selling TOOL. Price lets us segment and attract different target markets with the objective of maximizing Revenue. But we have to be careful our revenue management strategies based on price sensitivity don’t turn against us.
Xotels is looking for hotels, which want to improve RevPAR, reduce travel agency commission costs, increase direct sales, increase GOPPAR and generate more profit through effective hotel management. Does your hotel fit the profile?
Now that we have our demand calendar, how do we start with pricing? We have found it effective, before setting a base price for each day, to develop a pricing grid. Such a hotel pricing matrix is an essential revenue management tool.