Building your pricing framework
Worldwide, savvy travellers are looking for the right price at the right time when it comes to choosing their holiday accommodation - a choice made all the more competitive given the scale at which the industry is growing.
According to STR, global hotel inventory grew 17.7% in the last 10 years with almost 17 million rooms around the world, while Booking.com alone has over 28 million alternative accommodation listings to choose from, from riads and ryokans to boats and safari camps.
All of this breadth of choice has created a hugely diverse and competitive market, so for properties looking to increase their occupancy it’s important to have a pricing framework established that will meet the demands of potential guests and help you fill those rooms.
“Talking to a number of partners across the globe, we wanted to make sure the programmes we develop align nicely with how they forecast and monitor their business,” says Shane Robbins, Senior Product Marketing Manager, Pricing at Booking.com. “From this, we built our vision of how our portfolio of pricing products can help partners drive increased occupancy during the times that matter most.”
Here, we introduce the three pillars of pricing.
Build a foundation
At the core of every good pricing strategy is a robust public rate plan, as Lodewijk van Wersch, Director of Product at Booking.com explained earlier this year. Creating the right rate plan, that offers guests a range of options including flexible cancellations, non-refundable and early booker rates will help you attract your fair share of potential guests. Here, you can also explore different rates that reflect room type, length of stay and any built-in extras such breakfast.
Attract specific customers
Your rate plan targets the broadest audience with publically available rates, but in some instances you may wish to engage a more distinct customer group. In this instance, it’s time to explore premium programmes and targeted rates. Genius and the Preferred Programme can help increase your long-term visibility among customers, while the likes of country rates and mobile rates will help you proactively target specific guests with a deeper discount.
On occasion, there may be a need to fill rooms when you experience an occupancy issue. Here, you can react to any occupancy issues by offering deals and discounts that will attract guests for specific stay-dates and room types for a limited time. Deployed in conjunction with the Visibility Booster, these fixes give you a variety of options to boost your property page views and target certain customer segments.
To learn more about pricing products speak to your account manager or visit the Extranet
- For properties looking to increase their occupancy, it’s important to have a pricing framework established that will meet the demands of potential guests
- Booking.com has developed three components of pricing that are the benchmark of how its helping partners optimise their occupancy needs on the platform