Page 32 - MARKETING MIX
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A successful guest price mix
The price of a hotel room may vary PRICING
according to the type of customer. depends on study of the
The hotel may have a rate for behavior profiles of major guest
individual business guests, a segments. Sub segmentation of
group rate for groups of ten or each category may occur,
more, and a convention rate for providing greater information
large functions.If a hotel has the about these major guest
objective of maintaining 70% categories. The most important
occupancy at an average rate of distinguishing profile
RM210, it needs to determine its characteristic of these two
mix of customers and the average major segments is their relative
rate per segment. To achieve its degree of price elasticity.
target, the hotel would have to sell Business travellers exhibit
above the average in peak times to inelastic price behavior leisure
compensate for off-peak travellers show an elastic price
discounts. response.
Advantage
of Value-Based
Pricing
Disadvantages
of
Value-Based
Pricing
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