Physical versus non Physical Rate Fences

Do your superior room types really match the needs of the consumers? Can the consumers really value the reasons that they would pay 35 euro extra to stay in your superior room? Do your clients really bother about the nice carpet?

If guests can clearly see the difference between room features, you have to differentiate them in your inventory.

If you have products with different benefits and characteristics, you have to identify them and sell them in a different way. It will help you create “physical rate fences”: justify higher or lower rates at different moments with competitive differentiation.

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Products are a combination of price and value. Developing different products enable to target different type of clients with different needs.

• Sell more than one room type
• Create value differences between them
• Feed the pricing matrix for all the room types
• Ensure clear differentiation through your room type descriptions in your distribution systems and brochures
• Contract all room type with corporate and tour operators accounts to yield on all type of clients during constrained periods.