When it comes to running a business, pricing plays a very critical role. With a small hotel, you can significantly increase your bottom line by using pricing and discount strategies. Here are three initial pricing strategies and one discount strategy to help you obtain more bookings and revenue while getting a leg up on your competitors:
1. Price Match Your Local Competitors
More than likely, there are other hotels – probably larger chains – in the same city as you. Even if it is a small hotel like yours, they are still your competitor. Whatever the case may be, you may want to consider offering at least one of your rooms at the same price, while others are at higher rates. This is to help you get the best of both worlds. You'll have the opportunity to bring in more revenue than your competitors, but you'll also be targeting guests who want to save a little bit.
2. Take Part in Psychological Pricing
There is a psychological response in consumers when you set a price like $99 versus $100. Consumers are more likely to choose the $99. Although it is only a buck, somehow they are attracted to the $99 price. This is a very odd pricing technique, but it is also very effective. It's definitely worth giving it a shot, even if the potential to boost revenue is minimal.
3. Go Above and Beyond Your Competitors
As a small hotel, your rates likely need to be a bit higher than your competitors in order to be successful. However, this doesn't mean that you can't be better than them. With your higher price, consider adding some extras that help to justify the higher room rate. This will set a specific standard that shows your hotel is of a much higher value and is worth the extra money that you put forth to get a room. Just make sure that you deliver on your promises, or your hotel will quickly go down the drain.
4. Don't Be Afraid to Offer Discounts
Although you are small and are trying to grow your hotel into a booming business that brings in plenty of money, you may want to consider offering some discounts. This is particularly true for guests who stay for an extended period of time. Alternatively, you could offer a discount for guests who decide to stay an extra night or two. It helps keep your rooms occupied and brings in money, but it also keeps your guests happy and more likely to come back or share their positive experience with others.
As you can see, there are several ways in which you can attract guests to your small hotel and ensure that your hotel stays in the game with your competitors. For more ideas, you can talk to a marketing professional or to North Myrtle Beach Chamber of Commerce & Convention and Visitors Bureau who may be able to shed some insight on how you can bring in even more guests and revenue.Share
12 June 2015
Tax time comes around every single year. Do you file married jointly or separately? Do you claim your property taxes and medical bills? What about a home office and the expenses for it? Were there any changes in tax laws that you should be aware of? My site is filled with advice for small business owners for tax time. You will learn how to get the most from your return and what could trigger an audit or red flag on your tax forms this year. Hopefully, what I have included on my site will help at least a few small business owners get through tax time with less stress.