Step by step guide to pricing your...

Tourism Business

 

4 factors to consider when pricing ACCOMMODATION

To be successful in your accommodation venture you must price your rooms accurately and competitively. This requires a clear understanding of costs and how these costs impact on the overall price. The average price you sell your rooms for can vary, some of the factors that influence pricing are:-

  1. Seasonality
    You may vary your price depending on high or low season.
  2. Operating costs
    The higher your operating costs, the more expensive your rooms will need to be so that you cover all expenses.
  3. Competition
    There is no point pricing your rooms out of the marketplace, you need to stay competitive or be able to justify the high price.
  4. Demand
    People will pay more if there is a high demand in a region; similarly they will pay less if there is an abundance of choice. This step by step guide will help you determine the point at which your accommodation breaks even and the ideal retail price to make the profit that you wish to achieve whilst factoring in all costs.

This step by step guide will help you determine the point at which your accommodation breaks even and the ideal retail price to make a profit that you wish to achieve whilst factoring in all costs.