When you are a frequent visitor to hotels, you are probably fascinated by all that goes into a great place to stay. The price of hotels is incredibly dynamic and constantly changing. The cost of a hotel stay doesn’t appear out of thin air. It is calculated.
Using some of the best dynamic pricing software for hotels, hotels can automatically determine how much they should charge and how much they can charge. Whether you want to learn how to find the most reasonably priced hotels or are thinking about opening one yourself, it is extremely useful to understand how prices are set. Below are some of the details that go into creating the price of your stay.
The Hotel Brand
Perhaps the most telling indication of how expensive a hotel is. You will hear it in the way people talk about hotel brands. They will say, “well it isn’t the Four Seasons” or “let’s just book a Marriott.” These are revealing because it shows that people consider the Four Seasons very high end and the Marriot to be a reasonable middle. If you hear that an event is at the Intercontinental Hotel, you expect it to be fancy. Even if the hotel isn’t that nice, like some of the Hiltons, the name alone will boost the price. People book hotels where they can have an idea of what they are getting for their money.
Of course, the amenities play a huge role in the cost of the hotel. Do they have a pool? A spa? Do they have a restaurant? What you get from the hotel will have a large impact on what you will pay. Are there robes in the room? Are the sheets soft? What’s the bathroom like? All these details play a role in the final cost of a hotel stay. It is, perhaps, what people want the most out of a good hotel. They want it to be better than their house. They want it to feel special. Who doesn’t like having a drink by the pool before lazily walking over to the hotel restaurant? These things change the price.
Where is the hotel located? Is it in a popular area? Can you walk to bars and restaurants? Is it downtown or outside the city? Is it close to the airport? Location is a huge factor when it comes to the final sum of your stay. It can make a nice hotel a lot cheaper, or it could make an inadequate one too expensive. Wherever you’re staying, the location will have an impact on what it costs you. A Hilton in the bad part of town could be the same as a Marriot in a better location.
Dates of Your Stay
Another defining factor of your hotel cost is the dates you are staying. Are you going during a tourist season, or will no one be around? The off season is much cheaper than the summer in a sunny place or winter for skiing. If you want to get a better price on a nice hotel, try going when their rooms aren’t in demand. The amount of rooms the hotel has available will greatly impact the overall cost of your visit. The number of nights you stay will also impact your price. It could make it cheaper per night if you book more nights. It’s a great way to stay somewhere nice without paying out the nose for it.
When You Book
Finally, when you book is a determining factor. Booking at the last minute could go either way. If the hotel is full, they will charge you more to stay there. If it is empty, they want to encourage people to book so they make it cheaper and post the listing on budget websites. Booking ahead of time provides a much stabler price. It won’t fluctuate as much because depending on the season they will know what to expect but won’t be able to predict the future. Next time you’re going on a trip, think about when you will book your hotel.
Hotel prices can fluctuate a lot, but many of them are going up. They will change when the hotel is busy, when they have many rooms available, where the hotel is located, what time of year it is, when you book, and how many nights you are staying. Next time you’re planning a hotel stay, think about all these details.