RDM Lesson 4 /5 - Price calculation

• rooms divison management
• MBO
• Studiejaar 2

Bleisure guest ...

1. are business travellers who combine their business trip with extra days off (so they are partly tourists).
2. are business travellers who spend the night in the hotel for their work but are away for work during the day.
3. are tourists who mainly spend the night in a hotel to spend the day relaxing in the vicinity of the hotel.
4. are tourists who not only spend the night in the hotel, but also spend a large part of the day there (for example all-inclusive hotels).

Sustainable entrepreneurship consists of paying attention to the 3 Ps.
What are those 3 Ps?

The profit margin you can achieve on your products depends on several factors, including:

1. the goals and sub goals set.
2. the period in which the guest wants to stay.
3. the purchasing plan
4. the kind of product you are selling

With supply-driven special offer:

1. The hotel approaches guests from previous years by sending them the room offer on request
2. The hotel itself composes a package deal to be sold via the website.
3. The hotel composes an offer and sends it specifically to a specific customer who has requested it
4. The hotel proactively approaches guests from previous years by sending them the room offer.

You receive a chat message on your hotel website from a marketing company whom would like to supply you with promotional flyers for your ongoing promotion. This is a sample of a demand-driven offer.

What is meant by Rate Parity?

What are the specific features of an allotment contract?

1. The risk for the sale lies with the hotel, there is a release date.
2. The sales risk lies with the hotelier
3. Tour operators gets room in option
4. Unsold stock can be returned free of charge

What are the specific features of a guarenteed contract?

The risk for the sale lies with the hotel, there is a release date.

The risk for the sale lies with the hotel, there is no release date.

The risk for the sale lies with the tour operator, there is a release date.

The risk for the sale lies with the tour operator, there is no release date.

Designing a package deal

You are the sales agent at a hotel in the Hague (choose one yourself). You have been asked to design new two package deals, one for corporate and one for leisure clients. Your packages should take recent trends and developments into account. Prepare two PowerPoint slides that you will show your manager: the package deal for the corporate clients and the package deal for the leisure clients. You need to include:

Total price of the deal

Cost price for the hotel

What the package deal includes; one overnight stay, at least one meal plan and special activities.

One to three special activities for each target group.

The platform(s) you will use for marketing.

 

Considering Trends & Developments 

What is the best way to determine the price of a hotel room at the moment considering a full lockdown?

Competitive pricing

Cost-based pricing

Demand-based pricing

A combination of all mentioned pricing strategies

What statement is correct?

1. You should always try to put the price of your hotel below that of your competitor, otherwise you outprice yourself out of the market.
2. Price elasticity is the use of different prices for different dates or periods.
3. The higher the selling price of a hotel room, the lower the profit percentage
4. By creating added value, you can ask for a higher price for your hotel rooms.

Assignment

Responding to a corporate (sales) inquiry

You will design your own package deal for this accordingly...

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Tip

What you need to consider while creating an advantage package deal: 

1. Calculate your fixed costs, variable costs and profit.

2. Indicate the package price of the room.

3. Indicate what else you specify and explain any discounts.

4. Indicate what your ultimate profit is

Other discount (for example, completion of quotation is deducted from profit) 

Sample sales quotation

Price rounding

Psychological pricing (rounding the total price down with only 1 euro can make a huge impact. Besides that,

rounding the total price down by 124.56 instead of 123,56 will wrap up the  last digit with a 9; which even sells better than a round number of 6000 (it sounds even much cheaper).