Tuesday, 29. October 2013

Pricing from “FENCING“ to “BAR”

Simple rate management with ibelsa.rooms

The changes that have occurred within the hospitality industry, with regard to the distribution channels available, have provided the hotelier with new profit opportunities along with fresh challenges. The latest media advancements have created exciting new marketing tools, but with these come the need for continuous portal maintenance and pricing consistency across all channels.

The transparency now afforded potential customers by the internet demands that hotel owners deliver uniform pricing policies and rate parity. This does not mean that every customer pays the same rate regardless of the circumstances; rather it ensures a clear and transparent explanation of rate discounts and their restrictions. This type of pricing is known as “fencing”.

But how does this work on a practical level? A business traveler, for example, who wants to alter or cancel his hotel stay at short notice owing to last minute changes to his schedule, is afforded the option to do so without incurring a penalty fee, but he is required to pay a higher rate for the privilege. A customer planning a short trip can book his getaway 2-3 months in advance, and is rewarded with a favorable rate for making a prepaid reservation. Early birds should be cherished and encouraged as they allow for optimum staff coordination in advance. Last minute deals may address issues of excess capacity in the short term, but they often bring with them the need for expensive personnel adjustments.

Once you have decided upon your “fenced” pricing policies, your next task is to present these prices to the potential customer comprehensively and consistently across all booking channels. Of course your main aim is to promote commission free reservations, such as those made on your own website. Therefore, your website should always offer a best price guarantee, or “BAR” (Best Available Rate).

Whether you are working on price management and rate restriction models, or setting the rates and their parity across various channels, ibelsa.rooms will always be there to guide you. Quickly and easily, you can setup a minimum stay, block a rate for a certain time period, or vary a price on a daily or weekly basis. Once prices are set, uploading to the website, booking portals and social media sites is accomplished, literally, with just a click of your mouse. Thus, a uniform pricing policy is guaranteed; though you always retain, of course, the ability to unlock offers on individual channels.

Curious? Your free trial is just a click away!