What rate plans should your property offer, and to whom? In the latest guide from RoomPriceGenie, we explain how independent hoteliers can bring in more bookings and revenue by selecting, managing, and promoting the right rate plans.
Here is a summary of the topics we cover.
What Are Hotel Rate Plans?
A hotel rate plan is a set of rates designed to target a certain segment of travelers. In addition to special pricing, rate plans also include special conditions such as a limited booking window, flexible cancellation policy, or minimum length of stay.
By offering a variety of rate plans, hotels can attract a broad spectrum of traveler types. Some rates may be open to everyone, while others will be reserved for special segments like corporate guests or loyalty members. Others are designed to incentivize desired behavior, such as reserving early, paying in advance, or staying longer.
How Do Rate Plans Work?
Once a rate plan is established, the hotel enters the details into the property management system (PMS) and distributes it to its booking channels. Then the hotel can open or close the plan and adjust rates up or down depending on how busy it is.
What Are the Main Types of Hotel Rate Plans?
Rate plans can vary by hotel, but these are the most commonly offered:
- Best available rate (BAR)
- Advanced purchase
- Promotions
- Negotiated
- Wholesale
- Loyalty
- Packages
- Group
Tips for Managing and Promoting Rate Plans
- Manage rates dynamically. Rather than offer fixed rates, offer a percentage discount off of BAR so that pricing moves up or down with changes in demand.
- Influence travel decisions. Use discounts and special booking conditions to encourage travelers to reserve during quieter times, book further ahead (or last minute), book directly, stay longer, and pay in advance.
- Restrict promotions to need dates. Keep in mind that OTA promotions come with a price in the form of higher commissions and deeper discounts. When demand is strong, close out discounted rate plans and increase BAR.
How Can an Automated Revenue Management Solution Help?
With an automated revenue management solution, hotels can dynamically price all rate plans simultaneously, flexing them up and down with changes in demand. This takes the anxiety and guesswork out of daily rate management, saving hoteliers hours per week.
Find Out More
To learn more about how to generate more revenue with the right rate plans, check out our free guide today!
To learn how RoomPriceGenie can help your property increase your property’s profitability, start your free trial of our automated pricing solution today!
