• Latest News
  • Restaurant News
  • Hotel News
  • Catering News
  • Chef News
  • Pub & Bar News
  • Supplier News

Hospitality & Catering News

hospitality and catering news

How much am I missing out on by using seasonal pricing?

September 15, 2022

By Robert Holland FIH, Managing Director UK & Ireland, Hotelpartner UK: How much am I missing out on by using seasonal pricing?

As the summer draws to a close, many hoteliers will be looking back at the holiday season and reflecting as to whether or not they chose the correct revenue strategy.

Did the high demand in 2021 convince them that domestic leisure was here to stay or did they expect normal travel patterns to resume with many Brits chasing the Mediterranean sun, forsaking the wonderful holiday options that the UK has to offer?

Robert Holland FIH, Managing Director UK & Ireland,  Hotelpartner UK

What is Seasonal pricing?

Traditionally a hotelier might have adopted a seasonal pricing strategy at the start of the year, believing that the summer holidays were their peak season and therefore would command the highest prices. Those that then left these rates in place may have had a disappointing summer.

How is Dynamic pricing different?

Dynamic pricing means that hotel rates are regularly adjusted using available data. Factors such as demand and availability, daily events, weather data, and even competitor prices are all considered. This multitude of data is then used to calculate the price that leads to maximum revenue with the best possible occupancy rate for the hotel. As summer neared and booking volumes were down on 2021, prices would have been adjusted to drive more reservations.

Gathering this data and then processing it is time consuming and can be difficult when using conventional Excel tables. I would strongly recommend that a well-founded strategy is supported with a hotel revenue management system that assists in the determination of rates & restrictions by means of algorithms or rules. However, the best tools are not enough if the human expertise is missing. Therefore, I would always recommend a combination of a revenue management tool and expert knowledge. At a recent event, I heard that less than 5% of worldwide hotels use a revenue management system.

A small hotel that we started working with in the Lake District almost tripled its income in year one, granted that was following an extensive refurbishment in a busy year but this would not have happened had we based rates on the previous results and left them alone without constant adjustments.
Ask yourself the following:

  • Do I still use Excel tables to calculate my rates?
  • How often do I adjust my rates and do I check my competitors pricing?
  • Should I look at what revenue tools might be available to help my decision making process?

If the subject of developing dynamic pricing through a combination of revenue management systems and human experience is one of interest to readers, the subject is being addressed at Coworth Park this coming November. Full details of the event and how to join the conversation can be found here.

Email Newsletter

Subscribe to our email newsletter and keep a close eye on the UK hospitality and catering business

Institute of Hospitality Golf Day 2023

Search h&C NEWS

  • Facebook
  • Twitter

Join our email newsletter community here

Join our email newsletter community here

Supplier News

Gorilla-Saving Rum Karisimbi Links Up with Spanish Caravan for Summer Solstice Beach Party

Andrew Bailey, Governor of Bank of England visits Wilson’s Foundry Showcase

Recognisable Blue Ecolabel Key to Satisfying Consumer Appetite for Sustainable Seafood in Pubs and Restaurants

Heat, hygiene and high footfall: summer kitchen risks every hospitality operator should be managing

Riso Gallo Young Risotto Chef of the Year 2025 – Winner Announced

Shake Shack Increases Sustainability Efforts with Wildfarmed Partnership; Introduces Regeneratively Grown Flour into Buns

From Global Adventures to Professional Ambitions: How Sinead Edwards found her future at UWTSD

British producers shine in Searcys’ 2025 summer menus

May’s Kitchen Porter of the Month is Sarah Buchanan, a leader after lunch

HancNews

HancNews

News Categories

  • Latest News
  • Restaurant News
  • Hotel News
  • Catering News
  • Chef News
  • Pub & Bar News
  • Supplier News
Home | Privacy | Sitemap

Copyright © · Hospitality & Catering News