Basic Charging in Hotel | Krishna Baludra

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.