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| Oct 03, 2008 6:49 pm |
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re: We are increasing our Hotel rates. Is it brave or foolish ? |
Sudha Gupta
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Hi Mary
At one hand it may seem justified to upgrade hotel's position in market by renovating property, improving look and adding facilities, on the other hand a sharp increase to 100-200% is something no traveler is ready to buy.
If they are used to of a hotel as certain kind, they do not expect it to have 100-200% increase next year
Leisure traveler is not repeating visit to same destination/city every year. Usually its business traveler who has no option.
any biz traveler chooses a certain hotel mostly because:-
-proximity that serves his work/ business interest
-budget that suits either his daily allowance or company's budget for his travel
if the budget does not suit him with the sharp increase, he is likely to look for another option
Good news is that slowly you may be able to spread the word about better standards and attract executives who can pay higher and ditto for leisure clients.
Best is not to try to recover your expenses in very first year after you have made them. Go slowly and don't let client feel the sudden price hike
Whatever you may decide to do, don't cause disappointment to either your Old clients or new ones. Deliver what you claim the price for.
Warm regards....Sudha
Private Reply to Sudha Gupta (new win) |
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