The resurgent hotel business is emerging as travel slowly recovers. Most importantly, the pandemic has had a significant influence on traveler behavior, which will undoubtedly change how hotels see their acquisition strategy for years to come. To flourish, hotels will need to display both long-term insight and perfect execution to handle this fundamental shift in the industry. They will have to leverage the changing hotel industry environment and technology such as Cloud Hotel PMS to maneuver in the new normal world.
One of the biggest changes that hospitality has been witnessing is the change in travelers’ expectations from hotels. Travelers now demand flexibility and personalization from hotels compared to before the pandemic, they want to live, work, relax, conduct meetings, and more from their hotel rooms.
In fact, according to a study by Actiu, 39.5% of participants want to use their hotel rooms as hybrid workstations along with leisure. If the needs and behaviors of travelers have changed, should hotels look into evolving the standard room rate types from early-bird Rates and rack rates to something more suited for travelers post covid?
Subsequently, let’s take a look at the rate types that are currently available to travelers today. Listed are some of the many room rate types that have proven to be constructive in luring the modern traveler.
Hotel-Office Rate: This is perhaps one of the earliest rates that surfaced during the pandemic. Working environments are changing with the changing need for time, i.e, the new work-from-home culture. It is of prime importance to have the hotels equipped with the right office necessities. In which case, the guest’s organization could cover the employees’ stay. This category of clientele is expected to bring regular business to the hotel not just from the stay point of view, but also from the meeting perspective.
Workation Rate: A decade after its introduction in Silicon Valley, the ‘workation’ has come into its own since the Coronavirus pandemic. A growing number of major hotels around the world are now offering this combination of remote work and vacation. Hotel stays of this type are typically longer than weekend vacations and can last for months. Hotels must take advantage of this situation and offer packages tailored to the needs of the work-hungry Millennials.
Family Rate: It is essential that families spend quality time together – away. As a result, the hotel facility has once again become an attractive option concerning proper disinfection of spaces and the use of in-house facilities. Families will find this option interesting as it allows hotel guests to use the hotel facilities, such as restaurants, pools, and more. By providing a discounted room for children in addition to the parents’ room, families can achieve this key objective. This rate implies long stays and additional expenditures on food and beverage, as well as other amenities, all of which can be integrated using the hotel management system to be billed in a single folio
Healthcare Staff Rate: Someone working hard to get us out of this mess deserves a break, and in this case, it is the healthcare staff that deserves it all. Hotels can participate in a b2b partnership with the hospitals, where part of the holiday can be subsidized and hotels can offer wholesome amenities, such as spa treatments or dinners. You can expect an average stay of three to six nights in this case and an upward trend in your business.
Bid Rate: Due to the inaccuracy of historical data, allowing clients to propose their prices is one way to tap into new market segments and return to the traditional way of setting rates. During these uncertain times, this allows hotels to remain busy. Hotels can do this seamlessly thanks to new technology and platforms like Cloud Hotel PMS.
One-Change Rate: As a result of the constant change of regulations, and following in the airlines’ footsteps, this rate provides a more secure and convenient way to book a non-refundable accommodation. Under these terms, clients may change their stay dates once and pay the price difference. These are fairly secure bookings for both the traveler and the facility. Changes though mainly depend on regulations.
Personalized Experiences: Travelers have always been interested in packages. Building unique personalized experiences has become more and more important as we tussle to find new ways to attract new customer segments. So, get into your local connoisseur shoes and offer adventurous guests packages they will love. You can also personalize the guests’ experiences by using modern tech like a hotel management system to do the job for you.
Quarantine Rate: Considering the number of quarantined people, a rate that allows people to stay for 3 to 10 consecutive days is becoming increasingly popular. In-room entertainment can be a source of revenue for this customer type since they stay within their assigned space. You can offer unique services such as digital room keys, room service, and more with the assistance of a hotel management system that is not only high-tech but also contactless.
Re-opening Rate: In 2020 and part of 2021, many hotels are working at lower occupancy than usual, so having a date when occupancy will gradually return to normal helps the hotel to build on its future REVPAR. Travelers and hotels alike can benefit from encouraging guests to stay in-house with some in-house credit in June as June seems to be a safe bet. This situation may be best addressed by using a value-added rate. So, you can expect a lot of advanced bookings and eager travelers.
Targeted Rates: As travel rates vary, they tend to follow markets that are open to travel, whether it be locally due to kids’ holidays or internationally due to fewer regulations. By targeting the geographical area of the opened route, the hotel’s Search Engine Marketing (SEM) process allows potential travelers to see the special rates.
Can a Cloud Hotel PMS help?
Essentially, you can create new hotel room rates through your hotel management software. Make sure your Cloud PMS is equipped with revenue management features that will not only help you create room rate types to attract the modern traveler but is the only way to be sure you are making smart decisions based on accurate, current data.
Here are some ways your Cloud hotel PMS will help you in the context of setting new room rate types and setting dynamic room rates.
- It helps you predict market demand for your hotel.
- Increase your profitability by optimizing your room rates.
- Cloud Hotel PMS enables you to take charge of your hotel business by making informed decisions and acting quickly.
- Recognize your room rates’ competitiveness.
- Boost your chances of getting online bookings
- Forecast long-term room rates.
Adapting to the evolving demands of travelers is imperative in an era when traveling in a Covid line or making flexible, last-minute plans has become the norm. To satisfy the needs of a travel-deprived public and also ignite the refined need to travel, it is important to identify and offer rates that match the current environment. For the hospitality sector to recover, the hotel industry needs to lead the way in being innovative.
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About Amit Shaw
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