Revenue Management Woordenlijst

Cost Based Pricing

Definitie

Cost-Based Pricing is a pricing strategy where the room rate is set by calculating the total cost of providing the service and then adding a fixed profit margin. This method ensures that all expenses—such as staffing, utilities, amenities, and cleaning—are covered before profitability is factored in.

Hoe te gebruiken

In hospitality, Cost-Based Pricing is often used as a baseline to ensure financial sustainability. Revenue managers often use this method in conjunction with demand-based strategies to create guardrails for dynamic pricing models.

Formule

Room Rate = Total Cost per Room + Desired Profit Margin

Verwante termen

Value-Based Pricing, Dynamic Pricing, Floor Rate, Break-Even Point (BEP), Contribution Margin
“Cost-Based Pricing ensures every room sold contributes to both covering operational costs and achieving profit, providing a reliable foundation for smarter pricing decisions.”

Hannah Lee

Hannah Lee
De Hospitality Show - Evenement Afbeelding

De gastvrijheidsshow

28-30 oktober 2024

De Glamping Show - Afbeelding evenement

De Glamping Show

1 - 2 oktober 2024