Every general manager worth their salt spends majority of their time on deciding the right price for rooms at their property. After all, this element is critical in establishing guest trust, and thereby, accelerating business.
However, the astute ones know that pricing is directly proportional to value, which itself is a result of various factors. This could include the hotel’s location, brand standing, a guest’s preferences and the packages devised to meet their needs.
In the past, several high-traffic destinations witnessed robust buoyancy when it came to pricing. Take the case of Goa. A popular holiday spot, it regularly saw significant price variations, based on the season or availability. However, more often than not, the highs offset the lows.
Shiv Bose, General Manager of DoubleTree by Hilton Goa-Panaji observed that while there were massive pricing fluctuations following the pandemic’s onslaught, things are more consistent now and in tune with the market demand. The average room rate at his property has risen by 50% from the previous quarter and is showing great prospects for further growth, following a streamlined approach by the property’s team.
GUEST ACQUISITION AND RETENTION
Most hoteliers invest considerable amount of resources in acquiring guests from a cross section of market segments. Guest acquisition cost itself is a consortium of a multitude of factors.
Bose explained that this ranges from marketing, product direction to catering to a target clientele as well as ensuring a great stay experience that is aligned with the brand promise. Since room rates frequently change based on availability and seasonality, hoteliers need to look at their guest acquisition cost pragmatically.
DoubleTree by Hilton Goa, Panaji works on all these factors for an enhanced approach. “Our marketing initiatives encompass both B2B and B2C principles. Our brand promise, coupled with our inherent desire to offer the best to our guests gaurantees repeat business,”Bose elaborated.
Moreover, the resort is situated in the midst of nature with a river flowing by, which naturally attracts travellers envisioning a serene stay experience. Hence, DoubleTree by Hilton Goa, Panaji places an onus on overall value rather than pricing alone.
Bose opined that pricing and value are two sides of the same coin. It is imperative that one leads the other and if this balance is not well-formed then the success will be short-lived. “Though market considerations largely drive price strategy, ultimately the product, people, and process drive the experience. For sustained growth, the value proposition must define the meaning of the pricing,” he noted.
THE RIGHT VALUE
Pricing is one of the most critical considerations in any business, but it is about more than hitting the right price point; everything boils down to value. Hence, hoteliers need to pay closer attention to value-based pricing.
Bose suggested that both pricing and value offerings should form part of their operational plans. “The former defines the direction and the latter defines the approach. Operational plans should clearly state the cost of proposed value, therefore, establishing a viable selling strategy,” he recommended. “Since value-based offerings are constantly reworked to benefit visiting guests along with pricing, planning for it is the right step forward for any organisation.”
Creating a path that guests will follow to discover a property and book a room involves sustained marketing, along with patience and trust. Hoteliers can introduce their brand to customers, based on their segmentation, with vibrant brand website marketing, along with promoting special offers and events on a social media platform does give leverage.
“They should invest in booking channels that work for them, since online travel agents and wholesale become a part of this juggernaut,” Bose stated.
MAKING AN IMPRESSSION
Hoteliers need to ensure they retain a guest’s positive impressions about the property to convince them to choose their hotel over another one during future travels. This is where matter over money often takes precedence.
According to Bose, a property needs to be worthy of earning accolades. Essentially, process orientation, innovation and upgrading hospitality is always a work in motion. One person’s good stay experience will translate into good ratings and reviews, thereby influencing other guests to choose the same property.
After all, while pricing is crucial to travel plans, property reviews have started assuming momentous importance. A hotel’s sales and marketing strategy should ascertain that both complement each other, or at least do not negate one another.
“One component of the strategy is usually a derivative of guest feedback that comes on various review portals. It is important that we constantly keep reviewing them and seek suitable answers for a better guest experience,” Bose pointed out. “Feedback is generally a revelation and enables hoteliers to reposition themselves. If juxtaposed well, a good review mechanism becomes a testament to a good strategy.”
