It is important, in periods of crisis, to protect our hotel\u2019s rate as much as possible, since they are interpreted as \u2018value\u2019 to your potential guests. The ongoing crisis is mainly a health crisis but extends to the financial fields. The effects on each country\u2019s economy are currently unknown.<\/p>\n
Protecting your hotel<\/strong>\u2019<\/strong>s pricing policy is important because:<\/strong><\/h4>\n<\/div>\n![\"hotelising.gr](\"https:\/\/www.hotelising.gr\/wp-content\/uploads\/2020\/08\/pexels-pixabay-209224-300x200.jpg\" "\\"\\"")
<\/h4>\n\n\u27a3<\/span>\u00a0Achieving higher average daily rate leads to \u00a0higher profit<\/strong>, in comparison to lower ADR with higher occupancy rate.<\/p>\n<\/div>\n\n\u27a3<\/span>\u00a0Hotels that maintained their ADR face a smaller decrease of RevPAR in comparison to their competition.<\/p>\n<\/div>\n\n\u27a3<\/span><\/strong>\u00a0Most hotels already have some reservations for 2021 coming from this year\u2019s cancellations. These reservations have either been moved from 2020 or exist as vouchers.<\/strong> You have to balance between the reservation\u2019s value, the voucher\u2019s value and the product that the guest finally receives.<\/p>\n<\/div>\n\n\u27a3<\/span>\u00a0If you apply large discounts for extended time periods, the risk of having the discount price as the \u201creference price\u201d arises, which is considered as the hotel\u2019s value. In addition, increasing your prices when the time is right will be difficult.<\/p>\n<\/div>\n\nUnder some conditions, the hotel will not be able to keep its pricing policy unharmed<\/strong>.<\/h4>\n<\/div>\n\nMainly when:<\/p>\n<\/div>\n
![\"hotelising.gr](\"https:\/\/www.hotelising.gr\/wp-content\/uploads\/2020\/04\/images.png\" "\\"\\"")
<\/p>\n
\nCash flow is needed.<\/p>\n<\/div>\n
<\/p>\n
\nDestination\u2019s ADR has dropped, meaning that the competition and the wider market have decreased their prices. That can get the hotel \u201cout of market\u201d.<\/p>\n<\/div>\n
<\/p>\n
\nWhat to do if you need to lower your rates:<\/strong><\/h3>\n<\/div>\n![\"hotelising.gr](\"https:\/\/www.hotelising.gr\/wp-content\/uploads\/2020\/08\/117-202x300.jpg\" "\\"\\"")
<\/strong><\/h5>\nUse clearly identified boundaries.<\/h5>\n
The lowest price has to appear as an offer, for a limited time with specific terms, so that it can be distinct from the official pricing policy.<\/p>\n
Set up flash sales.<\/h5>\n
Flash sales can be set up on OTA\u2019s and campaigns that are being promoted frequently, in market specific channels such as Secret Escapes, Very Chic, etc.<\/p>\n
Provide added value instead of discount.<\/h5>\n
Configure the room price as a \u201cpackage\u201d with additional services ex. voucher for F&B consumptions, late check out, etc.<\/p>\n
\u00a0<\/strong><\/p>\n <\/p>\n
<\/p>\n
<\/p>\n
Provide flexibility to your guests<\/strong><\/h3>\nDue to the uncertainty that we all experience, travelers will have a hard time scheduling and committing to their plans.\u00a0Flexible cancellation policies are important so that you can acquire new reservations. Do not presume that any flexible reservation will be cancelled!<\/strong>\u00a0Take a moment and think if you need to deactivate Non Refundable rate plans with 100% cancellation fees. Even if travelers that book non refundable rates in order to get a better deal exist, they are very few. Think of the stock markets: when market rates are dropping, there are some \u201cplayers\u201d that are taking the risk and buy when everyone else is selling. This kind of buyers is the minority. Feel the market\u2019s vibe, sync and adjust accordingly.<\/p>\nIn case that you run a hotel with a smaller scale capacity, flexible policies could be too much of a risk for you. A partially refundable rate plan could be more suited to your needs.<\/h5>\n
<\/p>\n
Take care of your OTAs\u2019 pages according to our new reality.<\/strong><\/h3>\n![\"hotelising.gr](\"https:\/\/www.hotelising.gr\/wp-content\/uploads\/2020\/08\/86-300x200.jpg\" "\\"\\"")
<\/p>\n
Even though sometimes we have to deal with some tough practices on behalf of \u00a0the online travel agents, we should not \u201cturn our back\u201d on them. In the contrary, treat them like business partners and use their influence to your advantage in smart ways. Observe how policies change and adapt.<\/strong> For instance, Booking was promoting its flexible rates. Even if you had a great offer but the cancellation policy was Non refundable, it would still appear at the bottom of the page with low visibility.<\/p>\nUpdate your pages for 2021! Let everyone know the actions that you are taking concerning cleaning, disinfecting, etc. You are taking them anyway; it<\/strong>\u2019<\/strong>s a pity not letting people know! Furthermore, I believe that information about hygiene will have a major part in OTAs<\/strong>\u2019<\/strong>assortment process. Stay ahead!<\/strong><\/p>\n <\/p>\n
Invest in close proximity markets<\/strong><\/h3>\nAccording to\u00a0INSETE, in long haul\u00a0markets, barely 7% of Americans choose their vacation in another continent while Australians are on 13%, Indians on 16% and Chinese on 6%.\u00a0 2021 is a year that domestic travel & short distance travel dominate.<\/strong>\u00a0Promotions should target these markets. Use Google\u2019s free tools<\/strong> and find out who is looking you up (google analytics) and which market is interested in your destination (google trends). Combine this information with a) destination\u2019s accessibility and b) positive data concerning the virus spread & absence of travel restrictions\u00a0on the country of origin and you have the perfect customer mix for 2021!<\/p>\n <\/p>\n
![\"hotelising.gr](\"https:\/\/www.hotelising.gr\/wp-content\/uploads\/2020\/04\/tips-768x582-e1586989079775-300x228.png\" "\\"\\"")
<\/strong><\/em><\/h5>\n\u00a0<\/strong><\/em><\/h5>\nTip: Turn the average occupancy into an advantage. Provide accommodation to travel bloggers that will promote your hotel.<\/em><\/strong><\/h5>\nIn order for such a collaboration to be meaningful, you need to <\/em>evaluate carefully the <\/em><\/strong>blogger<\/em>\u2019<\/em>s audience. It has to be relevant to the audience that you are aiming for and the blogger<\/em>\u2019<\/em>s aesthetics to be in sync with your brand, etc. If you decide to go through with such a collaboration, agree in advance on the details about the material (photos, videos) they produce and your right to use it as you wish.<\/em><\/p>\n <\/p>\n
<\/p>\n
<\/p>\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
2021 is meant to be a difficult year for the tourism industry. Let\u2019s see how we can achieve the best possible financial results! Avoid lowering your rates It is important, in periods of crisis, to protect our hotel\u2019s rate as much as possible, since they are interpreted as \u2018value\u2019 to your potential guests. The ongoing […]<\/p>\n","protected":false},"author":1,"featured_media":6936,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[59],"tags":[],"class_list":["post-6980","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-hotels"],"blocksy_meta":{"styles_descriptor":{"styles":{"desktop":"","tablet":"","mobile":""},"google_fonts":[],"version":7}},"_links":{"self":[{"href":"https:\/\/www.hotelising.gr\/el\/wp-json\/wp\/v2\/posts\/6980","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.hotelising.gr\/el\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.hotelising.gr\/el\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.hotelising.gr\/el\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.hotelising.gr\/el\/wp-json\/wp\/v2\/comments?post=6980"}],"version-history":[{"count":2,"href":"https:\/\/www.hotelising.gr\/el\/wp-json\/wp\/v2\/posts\/6980\/revisions"}],"predecessor-version":[{"id":10894,"href":"https:\/\/www.hotelising.gr\/el\/wp-json\/wp\/v2\/posts\/6980\/revisions\/10894"}],"wp:attachment":[{"href":"https:\/\/www.hotelising.gr\/el\/wp-json\/wp\/v2\/media?parent=6980"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.hotelising.gr\/el\/wp-json\/wp\/v2\/categories?post=6980"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.hotelising.gr\/el\/wp-json\/wp\/v2\/tags?post=6980"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
<\/h4>\n\u27a3<\/span>\u00a0Achieving higher average daily rate leads to \u00a0higher profit<\/strong>, in comparison to lower ADR with higher occupancy rate.<\/p>\n<\/div>\n \u27a3<\/span>\u00a0Hotels that maintained their ADR face a smaller decrease of RevPAR in comparison to their competition.<\/p>\n<\/div>\n \u27a3<\/span><\/strong>\u00a0Most hotels already have some reservations for 2021 coming from this year\u2019s cancellations. These reservations have either been moved from 2020 or exist as vouchers.<\/strong> You have to balance between the reservation\u2019s value, the voucher\u2019s value and the product that the guest finally receives.<\/p>\n<\/div>\n \u27a3<\/span>\u00a0If you apply large discounts for extended time periods, the risk of having the discount price as the \u201creference price\u201d arises, which is considered as the hotel\u2019s value. In addition, increasing your prices when the time is right will be difficult.<\/p>\n<\/div>\n Mainly when:<\/p>\n<\/div>\n Cash flow is needed.<\/p>\n<\/div>\n Destination\u2019s ADR has dropped, meaning that the competition and the wider market have decreased their prices. That can get the hotel \u201cout of market\u201d.<\/p>\n<\/div>\n <\/p>\n The lowest price has to appear as an offer, for a limited time with specific terms, so that it can be distinct from the official pricing policy.<\/p>\n Flash sales can be set up on OTA\u2019s and campaigns that are being promoted frequently, in market specific channels such as Secret Escapes, Very Chic, etc.<\/p>\n Configure the room price as a \u201cpackage\u201d with additional services ex. voucher for F&B consumptions, late check out, etc.<\/p>\n \u00a0<\/strong><\/p>\n <\/p>\n <\/p>\n <\/p>\n Due to the uncertainty that we all experience, travelers will have a hard time scheduling and committing to their plans.\u00a0Flexible cancellation policies are important so that you can acquire new reservations. Do not presume that any flexible reservation will be cancelled!<\/strong>\u00a0Take a moment and think if you need to deactivate Non Refundable rate plans with 100% cancellation fees. Even if travelers that book non refundable rates in order to get a better deal exist, they are very few. Think of the stock markets: when market rates are dropping, there are some \u201cplayers\u201d that are taking the risk and buy when everyone else is selling. This kind of buyers is the minority. Feel the market\u2019s vibe, sync and adjust accordingly.<\/p>\n <\/p>\n Even though sometimes we have to deal with some tough practices on behalf of \u00a0the online travel agents, we should not \u201cturn our back\u201d on them. In the contrary, treat them like business partners and use their influence to your advantage in smart ways. Observe how policies change and adapt.<\/strong> For instance, Booking was promoting its flexible rates. Even if you had a great offer but the cancellation policy was Non refundable, it would still appear at the bottom of the page with low visibility.<\/p>\n Update your pages for 2021! Let everyone know the actions that you are taking concerning cleaning, disinfecting, etc. You are taking them anyway; it<\/strong>\u2019<\/strong>s a pity not letting people know! Furthermore, I believe that information about hygiene will have a major part in OTAs<\/strong>\u2019<\/strong>assortment process. Stay ahead!<\/strong><\/p>\n <\/p>\n According to\u00a0INSETE, in long haul\u00a0markets, barely 7% of Americans choose their vacation in another continent while Australians are on 13%, Indians on 16% and Chinese on 6%.\u00a0 2021 is a year that domestic travel & short distance travel dominate.<\/strong>\u00a0Promotions should target these markets. Use Google\u2019s free tools<\/strong> and find out who is looking you up (google analytics) and which market is interested in your destination (google trends). Combine this information with a) destination\u2019s accessibility and b) positive data concerning the virus spread & absence of travel restrictions\u00a0on the country of origin and you have the perfect customer mix for 2021!<\/p>\n <\/p>\n In order for such a collaboration to be meaningful, you need to <\/em>evaluate carefully the <\/em><\/strong>blogger<\/em>\u2019<\/em>s audience. It has to be relevant to the audience that you are aiming for and the blogger<\/em>\u2019<\/em>s aesthetics to be in sync with your brand, etc. If you decide to go through with such a collaboration, agree in advance on the details about the material (photos, videos) they produce and your right to use it as you wish.<\/em><\/p>\n <\/p>\n <\/p>\n <\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" 2021 is meant to be a difficult year for the tourism industry. Let\u2019s see how we can achieve the best possible financial results! Avoid lowering your rates It is important, in periods of crisis, to protect our hotel\u2019s rate as much as possible, since they are interpreted as \u2018value\u2019 to your potential guests. The ongoing […]<\/p>\n","protected":false},"author":1,"featured_media":6936,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[59],"tags":[],"class_list":["post-6980","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-hotels"],"blocksy_meta":{"styles_descriptor":{"styles":{"desktop":"","tablet":"","mobile":""},"google_fonts":[],"version":7}},"_links":{"self":[{"href":"https:\/\/www.hotelising.gr\/el\/wp-json\/wp\/v2\/posts\/6980","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.hotelising.gr\/el\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.hotelising.gr\/el\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.hotelising.gr\/el\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.hotelising.gr\/el\/wp-json\/wp\/v2\/comments?post=6980"}],"version-history":[{"count":2,"href":"https:\/\/www.hotelising.gr\/el\/wp-json\/wp\/v2\/posts\/6980\/revisions"}],"predecessor-version":[{"id":10894,"href":"https:\/\/www.hotelising.gr\/el\/wp-json\/wp\/v2\/posts\/6980\/revisions\/10894"}],"wp:attachment":[{"href":"https:\/\/www.hotelising.gr\/el\/wp-json\/wp\/v2\/media?parent=6980"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.hotelising.gr\/el\/wp-json\/wp\/v2\/categories?post=6980"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.hotelising.gr\/el\/wp-json\/wp\/v2\/tags?post=6980"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Under some conditions, the hotel will not be able to keep its pricing policy unharmed<\/strong>.<\/h4>\n<\/div>\n
<\/p>\n<\/p>\nWhat to do if you need to lower your rates:<\/strong><\/h3>\n<\/div>\n
<\/strong><\/h5>\nUse clearly identified boundaries.<\/h5>\n
Set up flash sales.<\/h5>\n
Provide added value instead of discount.<\/h5>\n
Provide flexibility to your guests<\/strong><\/h3>\n
In case that you run a hotel with a smaller scale capacity, flexible policies could be too much of a risk for you. A partially refundable rate plan could be more suited to your needs.<\/h5>\n
Take care of your OTAs\u2019 pages according to our new reality.<\/strong><\/h3>\n
<\/p>\nInvest in close proximity markets<\/strong><\/h3>\n
<\/strong><\/em><\/h5>\n\u00a0<\/strong><\/em><\/h5>\n
Tip: Turn the average occupancy into an advantage. Provide accommodation to travel bloggers that will promote your hotel.<\/em><\/strong><\/h5>\n