OVERVIEW OF THE MAIN HOTEL BUSINESS’ PRICE STRATEGIES
Abstract
Price strategy that can ensure high revenues along with a favorable hotel’s competitive position in the service market is the part of the hospitality establishments’ marketing strategy. The complex market conditions of hospitality establishments in Ukraine draw managers’ attention to price issues even more. The purpose of the article is to generalize and systematize the main price strategies for the main hotel accommodation service. Price strategy is the basis of revenue management in the hotel industry. The main method of scientific research is the transition from the abstract to the concrete. In such a case the effectiveness and practical use of the described price strategies in the hotel sector is proven on concrete examples. The article determines the peculiarities of the hotel service as an object of pricing. The above peculiarities are based on the analysis of the room stock’s state, the knowledge of one’s guest and the constant monitoring of external and internal factors of the hotel’s activity. The essence and conditions of the main price strategies’ application in the hotel sector are considered, depending on the institution’s position on the market and the purpose of the activity. Forecast Based Strategy is based on the demand calendar and the PMS database, which allow you to automate the process of justifying price changes. Segment Based is based on the best satisfaction of all consumer needs and is used to maintain competitive positions and maximize hotel revenues. Parity Strategy takes into account fluctuations in demand for hotel services. Discounting Strategy helps the hotel to expand the market and improve brand recognition. Flash sales are used as an anti-crisis measure. Upselling and cross-selling strategies are also described, which are aimed at increasing the average guest check and allow to increase the profitability of the hotel. It was determined that a thoughtful price policy of a hospitality establishment, understanding the essence and conditions of using such price strategies by the front office staff will allow the hotel to retain its guest, increase loyalty, improve its competitive position and increase revenues.
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