Hotel Pricing Strategies: Using Room Types as a Strategic Yield Tool

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The rooms of your hotel are one of the most powerful tools you have at your disposal as a revenue manager. It allows you to segment and position the hotel product, differentiating yourself from the competition. If segmented correctly it also allows you to build a revenue management.

In a previous article on our blog we already discussed creating multiple room types to improve the commercial positioning of your hotel. Using your rooms to merchandise your hotel, will result in auto-upselling by guests, we concluded. But there is more to it. It allows you to build up a comprehensive rate grid with a multitude of price points. Having a wide range of room types at our disposal, with a well defined product variation, allows us to reach different buyer (aka potential guest) budget level.

What is a Delayed Filing

In the early days of revenue management yield managers used to work with price BAR levels. However this practice in the age of dynamic pricing is a bit outdated. It limits you to work only within a predefined set of rates.But what if there is demand to sell your rooms can sell at a higher price? Or what if you need to go lower during distressed periods.We prefer with a fully flexible pricing matrix, which allows for any rate.

But you can also decide to use your room categories to capture extra occupancy in a low demand period. You can decide not close your basic room categories, and oversell them to capture extra volume. This way you don’t have to adjust your pricing, and stay-through rates are not up and down for each day of the week.

  • Avoid paying state franchise taxes for the year in which registration forms were submitted
  • Have ample time to sort out other requirements
  • Creating operating agreements, establishing a board of directors
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Different states have different rules as to how far in advance they will receive a delayed filing. Usually, the requirement is to file between 30 to 90 days before the desired effective date. So, for business owners wanting an effective date of January 1, 2019, now is an excellent time to check out the rules that apply to them as we’re in that 30- to 90-day window now. Check with your state or contact my team at CorpNet to find out how far in advance you can file.

6 Comments on this post

  • Macan Jhon

    August 3, 2019 at 4:02 am

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      • Julia

        September 20, 2019 at 8:18 am

        In the early days of revenue management yield managers used to work with price BAR levels. However this practice in the age of dynamic pricing is a bit outdated. It limits you to work only within a predefined set of rates.But what if there is demand to sell your rooms can sell at a higher price? Or what if you need to go lower during distressed periods.We prefer with a fully flexible pricing matrix, which allows for any rate.

        • Julia

          September 20, 2019 at 8:18 am

          It limits you to work only within a predefined set of rates.But what if there is demand to sell your rooms can sell at a higher price? Or what if you need to go lower during distressed periods.We prefer with a fully flexible pricing matrix, which allows for any rate.

          • Julia

            September 20, 2019 at 8:18 am

            Or what if you need to go lower during distressed periods.We prefer with a fully flexible pricing matrix, which allows for any rate.

  • Julia

    September 20, 2019 at 8:19 am

    We prefer with a fully flexible pricing matrix, which allows for any rate.

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