Does hotel price at cost? Or is price determined by value? here: let me tell you

Original: Li Sheng

Today

I was

Thinking about hotel prices

Practicing with reality and data

Hotel Confirmed

Requests for quotations for creation of works

First

What determines hotel prices

This question

There are benevolent people who see benevolence and wise people who see wisdom

Even. There is no right or wrong

I think

Today's consumer environment has a huge impact

Guest perception of hotel prices

You often see

Many hotels are in early stages of opening

Use a low occupancy strategy

As occupancy increases

The price is also rising

To best price

The price depends on two main factors

First is cost, second is cost of hotel.

The idea that value determines price

Mostly

In terms of customer factors

If client thinks

The price of your hotel is too high and you are canceling booking

The guest will not take into account cost of hotel

This

Guest

I think price of your hotel is more reasonable

minimum guests

I think price of hotel is reasonable

Second

The cycle of a hotel product determines price

Products for hotels

The cycle is a key factor influencing price

Over time

Aging of products and equipment

Hotels will continue to reduce prices

Best Hotel

Use additional services to compensate for lack of product aging

From client's point of view

is cost compensation

To reduce guests' judgment of hotel value

So

WineDelays product aging

This is long-term important work

Third

Price=Price

Price=cost

The hotel is needed for three things

1. Create value

Product design

Furniture performance

All functional services provided by hotel belong to this category

If

Spend less in East, where guests don't care

Spend more money on clients

A place to experience firsthand

What needs to be done at design stage

2. Pass a value

I have done internal training in many hotels

Sometimes

It rarely happens to such managers or consultants

pass value action

Because cost determines price

Then

The hotel must continue to benefit hotel

Let guests

I felt value of hotel

And constantly increase cost of hotel

Just like that

This will change guest's perception of hotel

Mattress

So comfortable

This is a patented product designed according to characteristics of human body

If hotel

Don't tell guest

Guests don't know why hotel mattresses are like thatcomfortable

Hotel

Service is process of delivering value

How to effectively and reasonably show value of a hotel

It needs to be learned and practiced

Because

This affects price of hotel

This will also affect guest's opinion of value of hotel

3. Maintain value

In my understanding

A hotel can start from three aspects

First, it is to maintain value of product.

Maintenance

Second, service consistency

If service at front desk is very good

The impressions of guests are also good

However

Experience with clients in other departments is extremely poor

No continuity of service

The third is contact after customer has left store

I recommend

Remember

Guest booking motivation is hotel's learning value in eyes of guests

Subscribe at same time

Spillovers and intangible benefits

For example

The hotel gym is epitome of secondary effect

When a client wants to work out

The hotel has a gym

This is a secondary effect

If in summer

The air conditioning in hotel is very powerful

The guest had a great rest

The next day, mental state was excellent

Successfully sign contracts with clients

This is an intangible benefit

Fourth

Influence of price on prestige

About recipe

Formerly from USA

Economist and sociologist Tordan

Veblen

That is, price is a sign of status and social prestige

For example

Guests of five-star hotels

There will be this "vanity effect"

Although

Does not necessarily match this effect

At least a group of clients will be more interested

So

The hotel can set membership level

VIP floor

Executive Floor

They are all practical applications of this effect

This may also match Maslow's level of spiritual need

Fifth

Placebo price effect

There used to be a lot

Psychologists did a lot of tests

Explain psychological impact of prices on people

For example

RMB 598

Because hotel is hosting an event today, guests will receive 398 RMB

From a psychological point of view, this is embodiment of placebo effect

If

Providing drinks to hotel staff at different prices

One price tag - 9.8 yuan

Price 2.8 yuan

Test in two batches

As a result, after drinking 9.8 yuan, you clearly feel better

Mentally well too

In addition

Drinking a portion of 2.8 yuan is a common thing

In fact, these two drinks are same, but packaging and pricedifferent

This

Hotels can also learn from this effect when developing prices

Sixth

Mental accounting

Mental accounts

I'm a professor at University of Chicago

Richard ThalerTheory

For example

Let's watch a movie

A movie ticket costs 48 yuan

Coming to cinema

I lost my movie ticket

Now everything is advanced

This is just to explain meaning of mental abacus

If

This person is selling another movie ticket for 48 yuan

Mental account number

Price 48+48 yuan

This theory is of great importance for hotel pricing

Hotel rates

What doesn't include breakfast is an application of this theory

Take a guest

Spread out consumption in hotel

The price of hotel will be low

Because

Other hotel guest consumption is recorded in other psychological accounts

Seventh

Influence of anchor price on hotel pricing

Regular guests

The hotel will be compared

After comparison, price range

will appear

This price range is anchor price

For example

Hotel price according to OTA

How much does a page view cost

For example, from 298 yuan

After customer goes to details page

The lowest price is 298 yuan

Others over 300 or over 500

This situation

This is unreasonable in terms of anchor price theory

Because of guests

Easier to take from high to low. It is unacceptable to go from low to high

I'm here

Use theories based on psychology

Explore hotel pricing strategies

So that you can make some innovations and changes

Try new strategies and approaches

Is it good for a hotel to increase number of bookings

Eighth

The magic of average price

I was thinking about hotels

You can set such a price

Same number type

298 yuan without breakfast

Breakfast included 299 RMB

Breakfast included 328 RMB

If it were me

When you book a hotel, you make sure to book a room for 299 yuan

If hotel

Each room type has three prices

You can calculate data

Is price in middle of most booked?

If it's most, hotel should pay attention to how to project price

Actually

The hotel can specify amount

Most room types match

Price like this

Help hotels improve booking efficiency

Original post I wrote

Not all hotels are right for you

For discussion

This may not be suitable for your hotel

But it will certainly help you with hotel pricing

Actually

There are many pricing strategies and methods