Last-minute price: Difference between revisions
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== What is a last-minute price?== | == What is a last-minute price?== | ||
It is the lowest rate or published tariff defined by | It is the lowest rate or published tariff defined by hotel management for a particular room category/type. This is what generally is shown on the tariff sheet of the hotel, and especially on the website, to attract potential customers. These rates include all the maximum discounts, so they are the minimum price in most situations. So to say, you could consider them 'lowest acceptable' from the management perspective. When working with minimum prices, often the additional spending in the restaurant and elsewhere makes the booking worthwhile. On occasions, rooms are 'sold' below the [[cost price]] of the rooms; not having them occupied means not even having a contribution to your fixed costs. So this is also a reason to have (a number of) rooms sold at this price. <br><br> | ||
The counterpart of this pricing is the [[rack rate]]. If your | The counterpart of this pricing is the [[rack rate]]. If your hotel has a good idea for this, explain it in your decisions to your coach and make calculations. In your decisions, other options don't exist. More on the [[prices]] and [[Year 1-2-3-4|Year 1-2-3-4 decisions]] pages. The relationship among cost price, sales price and profit is to be found in [[RevPAR]].<br><br> | ||
More info online | More info online: | ||
* [http://hebs-cms.s3.amazonaws.com/1492126425/cms/pdf/mag/11%20-%20HotelsMag%20-%20The%20Pitfalls%20of%20Last%20Minute%20Sales%20in%20Hospitality-FD.pdf Good article on this issue] or | * [http://hebs-cms.s3.amazonaws.com/1492126425/cms/pdf/mag/11%20-%20HotelsMag%20-%20The%20Pitfalls%20of%20Last%20Minute%20Sales%20in%20Hospitality-FD.pdf Good article on this issue] or | ||
* [https://www.xotels.com/en/revenue-management/revenue-management-book/price-sensitivity All | * [https://www.xotels.com/en/revenue-management/revenue-management-book/price-sensitivity All kinds of price systems]. | ||
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Latest revision as of 11:17, 14 October 2024
What is a last-minute price?
It is the lowest rate or published tariff defined by hotel management for a particular room category/type. This is what generally is shown on the tariff sheet of the hotel, and especially on the website, to attract potential customers. These rates include all the maximum discounts, so they are the minimum price in most situations. So to say, you could consider them 'lowest acceptable' from the management perspective. When working with minimum prices, often the additional spending in the restaurant and elsewhere makes the booking worthwhile. On occasions, rooms are 'sold' below the cost price of the rooms; not having them occupied means not even having a contribution to your fixed costs. So this is also a reason to have (a number of) rooms sold at this price.
The counterpart of this pricing is the rack rate. If your hotel has a good idea for this, explain it in your decisions to your coach and make calculations. In your decisions, other options don't exist. More on the prices and Year 1-2-3-4 decisions pages. The relationship among cost price, sales price and profit is to be found in RevPAR.
More info online:
