Last-minute price
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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 include all the maximum discounts, so they are kind of the minimum price is 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 e.g., should make the booking worthwile. 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 hotel 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 Year 1-2-3-4 decisions. The relation between cost price, sales price and profit is to be found in RevPAR.
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