Basic Charging
Various
basis of charging room tariff are used by the hotel. Most important is that the
hotel shall fix the room tariff keeping in mind the fallowing factors.
Competition:
Rates must
be competitive with other hotels of the same standard and providing almost
similar services and facilities as provided by the other hotels situated in the
same vicinity of the city.
Customer Profile:
The guest
who is coming to hotel must be considered. Their social status and financial
status, i.e, paying capacity must be in mind
Standards of Services:
The Unique
Selling Point of hotel should be kept in mind while fixing room tariff.
Standards of service provided by the hotel are also important while fixing room
tariff. More the amenities, higher the standard, so also higher the room rate.
Price cuts for Special Business:
At times
price cuts for special business may be done.
(i)
It is necessary to cut the price in order to get
business,
(ii)
The price of business is income which you would not
otherwise get,
(iii)
It comes at a time of the year or day of the week when
you need business
(iv)
It does not replace other more profitable business
Locality:
The
locality in which the hotel is situated gains prominence while fixing room
rates. If the hotel is situated in a posh locality where all the shopping and
other facilities, approaches to airports and railway stations are worthy, the
room rate would be comparably higher than that situated in backward and far-off
localities. Naturally, the guest would not mind paying more if he gets amenities
and facilities to his taste and liking.
The Surroundings cost of land and Building:
Surroundings
need also a great deal of consideration because the hotel proprietor spends
lakhs of rupees in décor and furnishing and thus needs a fair and equitable
return on his spending.
Various Amenities:
Various
amenities the hotel is going to provide to the guests such as air conditioning
in all rooms, carpeting, provision of swimming pool, tennis –court equipment,
arrangements for floor-shows, dancing, games banqueting, conference halls,
lobbies, lawns, parking spaces, special aspects of continental and Indian
cuisine, cutlery and crockery, modern equipment and machinery. These things do
count when factors of room-rates are considered.
Room Location:
The
location of room also matters a lot. Front rooms and rooks opening to better
views would cost more than dark rooms, corner rooms or opening to indifferent
chambers.
Publicity:
The amount
of publicity done by hotel special budgets prescribed for hotel publicity also
matters in deciding the room rates. This type of expense has to be adjusted
somehow as it has no source of return but is a must in popularization the
various services of hotel.
