Prices are something that concern our customers, being a priority in many statistics. However as indicatedin Hotelmarketing.com pricing strategies do not have the same frequency in all the hotels nor the same flexibility, in fact they are quite rigid, at least in France.
From Innwise our Revenue Management expert, Pedro Carmona, exposes some document data comparing French and Spanish markets with reference to the urban sector. Even though the price matters, our business must not be devalued.
According to the article, 91% of French hoteliers assure implementing flexible strategies in their hotel pricing. In fact, 43% say it is the only technique that they follow. It also adds that 44% offer special rates for last minute and reservations made more than 30 days in advance.
Another aspect that changes depending on the establishment, is the pricing frequency: 39% apparently check them daily, 26% weekly and 35% monthly. Consequently, it is clear that not all hotels are as updated as others when it comes to competing in this particular price race.
Regarding the channels through which potential customers can access the offers, only 14% of hoteliers indicate that they have flexible rates on all channels. At this point, Carmona believes that Spain intensifies the multi-channel. “It is surprising that France, being one of the most tourist countries in the world, have strategy revenue (within which we can frame the section on pricing) minimally widespread among their hotels (for example, only 23% of their hotels have early booking, last minute and flexible rates). Furthermore, only 14% of the hoteliers flexible rates apply on all channels, we can say that this is working much better in Spain than France, “he says.
However, although the Innwise Revenue Manager expert believes that the Spanish hotel industry is better than the French, he also highlights that our hotels have not taken advantage of this situation due to disputes generated when a fair price needs to be set at the right time. “We have started a price war that is just leading us to be among the most visited countries in the world, but with very low yields and France, known as one of the top worldwide tourist destinations has not fallen into this trap of the price war, “ he explains.
Finally, Carmona, sends a message to those who think that the Revenue Management consists only in raising or lowering room rates according to market availability. “It is obvious that with a worse hotel industry and static pricing strategies you can still be a great tourist potential and above all, making business, which is every time increasingly more difficult in our country”, he concludes.