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PROPERTY COST EXTRUCTURE

PROPERTY COST EXTRUCTURE

The cost structure is a Kind of road map.

We cannot imagine being on an aircraft trip where the pilot, holds up the com-phone and says: "Dear passengers, today we are flying without the route planning map, so we wish you luck in this trip". Once finance department or money management responsible at the hotel, decides to stablish room tariffs, it is quite demanding to know all those variables which will impact in the price of the rooms. Variables such as:

  • Payroll
  • Ammenities
  • Cleaning products
  • Depreciation
  • Energy and communication
  • Reparings
  • Food (Breackfast) if included, etc
Cost Structure

Hotels stablishing tariffs without using the cost structure, are exposed to losses at the shor or medium term.

Regards,Richard Chacón

1 Replies

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Aaltje B.

Hi Richard,

 

Because every situation is different, it is hard to know what is the best tariff. 

But look how you compare to others in the very last column at the top in your extranet. 

When you go the official way (paying tax etc) then it can be very demanding to make money. 

Location is key. Service as well. Demand...

What is your winning point? Why would people choose you? 

Efficiency is changing every year. 

One year I take out breakfast, other year I add. This year I added children facilities. 

Be creative and try out some things, see how you go. 

 

Is this what you meant? 

greetings, 

Aaltje B. 

1 month ago