📊 What is pricing?

Pricing refers to determining the right room rates to balance occupancy and profitability. It takes into account demand trends, competitor rates, special events, seasonality, and customer segments to adjust prices dynamically or periodically.

🧮 Key factors that influence pricing

• Market demand and supply
• Competitor pricing
• Seasonality and special events
• Customer segments and booking channels
• Costs and profit goals

✅ Importance of pricing

• Directly impacts hotel revenue and profitability.
• Helps position the hotel competitively in the market.
• Encourages bookings by adjusting to customer willingness to pay.
• Supports revenue management objectives.

📘 Practical pricing example

A hotel raises room rates during a local festival to capture higher demand and lowers rates in quieter months to maintain occupancy.

👉 The strategy and process of setting room rates to optimise revenue based on market demand, competition, and other factors.