Shift Your Hotel Marketing Focus from Price to Value
It's amazing how much time and energy gets poured into deciding the price of a hotel room. There are STR reports, RMS Reports, and booking engine reports, to go along with the hundreds of tools that are solely focused on how much you are charging for your room. There are stacks of reports on top of other reports all showing pricing data – past, present and future. You want to know anything to do with pricing? There's a report for that.
Now, where is the value report? You see, identifying your competition based on the size of your bed and the bathroom sink is an idea that is past its prime.
Boutique hotels (a term that needs to be retired) are a good example of how to look beyond pricing and instead put forth a unique personality and guest experience. They took the time to define who they were. Many were able to create a unique identity and following.
Any hotel can do this if they make the effort (unless a brand is calling the shots). Here are some suggestions on how to shift your focus toward providing value to guests.
Don't Get Dragged Into the Price War
A lot of the traditional independent hotels under pressure from stakeholders have turned to price-level competition. When your biggest USP is your price, then that is all that you will be judged on. A lower room rate becomes your only significant offering. But the guest you are targeting has a goal: to keep searching the internet for an ever lower rate.
Pricing is a shortsighted play. If you are looking for long-term profitability, you need to look at the value your are providing to your guests. Taking the time to educate your guests can make all the difference in value perception, allowing you to charge more for your rooms.
Better Perception = Better Price = Better Profits.
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