It is most important because it affects directly the sales and profits of a hotel. The main target of pricing strategy is to strike the optimum balance between supply and demand in order to maximize the hotel’s profits, because it affects the volume of sales and profit maximize for the hotel (Virginias and Wood, 2002)
“Price represents a significant strategic decision for all hotel accommodation operators, and its important device for ‘creating’ consumers’’ (Virginias and Wood, 2002, pp54)... displayed 300 characters
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In this essay the few strategies which are discussed are Cost-based price and Market based price.
According to Abbott and Lewry (1999) ‘There are two fundamental methods of approaching the problem of accommodation pricing’.
First one is cost based pricing, in this system the tariff is designed to cover the basic costs of operation at a given level of services, plus a given rate of return and another one is market based pricing... displayed next 300 characters
It can be done through third party
? For aliens, the following extra details must also be recorded; pass port number, next destination (if known), date of departure
Overbooking and the rights of the customer
How this affects the Brookes hotel
? Overbooking becomes good sales technique
? To balance the extra rooms (none-arrivals and cancellations)
? Go wrong, it is necessary to "book out" guest to another hotel
? (pay any extra charge, taxi, telephone)
The penalties of none-compliance
? Trade Description Act 1968
? Overbooking can be a criminal offence
Forget about dynamic pricing, do a better sales effort."
Another large-volume buyer said that dynamic pricing would hurt hotel companies because there would be interest in using competition on the open market...
These group of target customers quickly became the biggest source of revenues for the company, representing 40% of their annual sales income. B2B customers such as the Millennium Partners, are the legal hotel owners for whom Ritz Carlton manages properties...
Thus, they are considered intermediaries in the hospitality distribution channel and are responsible for bringing customers to a product (as opposed to intermediaries in other channels who bring the product to the customer)...
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