Question

Discuss the broad pricing strategies that can be used in hospitality and tourism.

Answer 1

Effective pricing strategies are vital to attract guests in hospitality and tourism. These can be:

-- Competitor-based pricing: While setting the prices the offerings of competitor must be taken into consideration. If these are done and monitored properly the prices can be increased or decreased in their strategies

-- Forecast-based pricing: The forecast in hospitality and tourism would depend on the increase or decrease in travellers coming to the location. Forecasting is a significant factor to consider for setting the prices that will be available for future dates.

-- Length of stay based pricing strategy: The duration of the stay influences the pricing strategy as to enhance occupancy the room pricing can be modified either based on minimum length of stay or maximum length of stay.

-- Pricing based on the type of guest: The type of guests at the hotel can be observed, and set a strategy on pricing for those who bring a good business

-- Pricing based on the non-refundable policy: An effective planned non-refundable policy on cancellation can help boost the revenue

-- Pricing based on your repeat guests: The repetitive guests ensure regular revenue thus various promotional tools can be used to attract and ensure their stay