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 the hotel management for a particular room category/type. This is what generally is shown on the tariff sheet of the hotel, on the website etc. especially to attract potential customers. These rates are have all the maximum discounts, so they are kind of the minimum price is most situations. So they say, you could consider them 'lowest acceptable' from the management perspective. Often the spending in restaurant make the profit on the sales. Many times the rooms are 'sold' below the [[cost price]] of the rooms. But, not having them occupied means not even having a contribution in your fixed costs. So this is also a reason to have (a number of) rooms sold at this price. <br> | It is the lowest rate or published tariff defined by the hotel management for a particular room category/type. This is what generally is shown on the tariff sheet of the hotel, on the website etc. especially to attract potential customers. These rates are have all the maximum discounts, so they are kind of the minimum price is most situations. So they say, you could consider them 'lowest acceptable' from the management perspective. Often the spending in restaurant make the profit on the sales. Many times the rooms are 'sold' below the [[cost price]] of the rooms. But, not having them occupied means not even having a contribution in your fixed costs. So this is also a reason to have (a number of) rooms sold at this price. <br> | ||
The counterpart of this pricing is the [[rack rate]]. If your hotels has a good idea on this, explain it in your decisions to your coach and make calculations. In your decisions other options don't exist. More on the pages [[prices]] and [[decisions]]. <br><br> | The counterpart of this pricing is the [[rack rate]]. If your hotels has a good idea on this, explain it in your decisions to your coach and make calculations. In your decisions other options don't exist. More on the pages [[prices]] and [[decisions]]. The relation between cost price, sales price and profit is to be found in [[RevPAR]].<br><br><br><br> | ||
More info online on sites like: | More info online on sites like: | ||
[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 kind of price systems]. | [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 kind of price systems]. | ||
Revision as of 10:58, 24 May 2018
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What is a last-minute price?
It is the lowest rate or published tariff defined by the hotel management for a particular room category/type. This is what generally is shown on the tariff sheet of the hotel, on the website etc. especially to attract potential customers. These rates are have all the maximum discounts, so they are kind of the minimum price is most situations. So they say, you could consider them 'lowest acceptable' from the management perspective. Often the spending in restaurant make the profit on the sales. Many times the rooms are 'sold' below the cost price of the rooms. But, not having them occupied means not even having a contribution in 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 hotels has a good idea on this, explain it in your decisions to your coach and make calculations. In your decisions other options don't exist. More on the pages prices and decisions. The relation between cost price, sales price and profit is to be found in RevPAR.
More info online on sites like:
Good article on this issue or All kind of price systems.
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