Apply the lower price of the room to Hotel Jesolo not enough
There will be resumed in 2010? Difficult to have an answer. None of futurists, economists and politicians to respond. And 'though useful to review what the missteps are not repeated. We have therefore asked the manager of a small but well established Hotel Jesolo Villa Roberta a Bad & Breakfast in the province of Venice, what should be the right attitude to face a future that looks unmanageable. Luvisotto Walter, 46, a baccalaureate scientific manages the Bad & Breakfast Hotel Villa Roberta Jesolo since 2003. Mr. Luvisotto, a common myth that the lowest price always wins ... True ....
In reality, the customer does not want the lowest price it wants a higher value. Imagine that a customer encounters the price of a cup of coffee € 2.50. Or facing a price a hotel room € 140,00 (when the standard required for that category is € 80-100). Mechanism "odious" that shows little understanding of the mechanisms that regulate the mode of application of the price. What decisions should take a hotel management to win the "race" that secures the best price? Of all the decisions a manager must take the hotel during the start-up business hotel, that relating to "fix" the price often causes considerable anxiety.
At first sight, "applying the price" is not just a numbers game. Develop a total gross account that allows to collect a reasonable profit after covering the costs of the method can be quite simple to follow. "Fix" a price is more an art than science, math. The psychology of the host is an important factor. Eventually "fix" the price means thinking about everything that the guest wishes to pay for the room and the services it includes.
In most cases, the "right price" is a matter for the perception of it by the customer. And his fellow hoteliers Jesolo what they think? The answer I received most often was, to paraphrase one of the many "operators to Jesolo must cover costs and at the same time, make a profit. Otherwise, the management of an or hotel would not be worth the risk, neither the investment nor the mental anguish resulting from its management. It seems to me more like a cry of: "I need to cover the costs" .... As I said, is the customer and the hotel management that determines the final price.
The customer does not care nothing about the costs of Hotel, and what are the margins in the management of the hotel needs to stay on the market. In general, I can not agree on the cost problem. We must add however that prices must be competitive and reasonable. If customers do not believe that to achieve sufficient value for their money, regardless of price, is likely not return. As I have stated, you can not "fix the price" in relation to cost.
Some indirect costs may not be assigned to specific budget items, but often involve aspects of the hotel company that customers perceive as added value, and are to weigh in their decision to choose a hotel rather than another similar.
How to "decide" when the price is "fair"? In trying to develop a strategy, I had to remember that there is an implicit relationship between price and value. The customer expects to pay more if he is offered, however, a product better than the standard breakfast. So for a luxury room with respect to the economy. As you can see, the value is a matter of opinion, certainly not a fact.
If you want an argument simpler, the market there are those who prefer to drive a Mercedes than an Audi. Others prefer the opposite. A sort of "tyranny" of opinion, so ... ... Since there is, indeed, a relationship between price and value (and that value is a matter of opinion), I started to fix the price of my room and related services, taking into account three factors: the profit margin possible, and my costs, the price in terms of market could be tolerated by customers.
And his guests how they react? You see, my guests Hotel in Jesolo Lido Villa Roberta have always been a special case: I have always felt that they gave a high value authenticity. Not only. But also placed a high emphasis on courtesy and honesty. Tolerate any errors or omissions. Not tended to be cumbersome, only wanting to pay for good quality.
In this way I developed my best actions against customers. Finally, what are the four best stocks? 1) Transparency: no fake money and some special rates are just and clearly linked to a business proposal. The price of regular hotel room and related services must be fair, 2) Clarity: accurate, no exaggerated description of services, 3) Simplicity: prices in Euros in full amount. To forget the gimmick of "95 cents"; 4) Confidence: Simple reciprocate and exchanges between client and manager.
About the Author
A holiday at Hotel Jesolo Villa Roberta, to enjoy their summer holidays in a comfortable Hotel Jesolo Lido a cost to everyone.
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