Establishing a successful pricing strategy is pivotal for a hotel's prosperity and revenue growth. One effective approach involves offering a combination of two rate plans for rooms: the Fully Flexible plan and the non-refundable plan.
The fully flexible plan is designed to cater to travelers seeking maximum freedom. It allows free cancellation up to seven days before check-in, making it the most booked but also the priciest option. On the other hand, the non-refundable plan offers a lower price point, securing more guaranteed bookings, particularly for last-minute reservations within a week of check-in.
Why consider both plans? Firstly, data reveals that travelers consistently prefer booking both non-refundable and fully flexible plans. The ease of comparing prices and selecting the best option makes these plans a top choice.
Moreover, diverse traveler preferences come into play. Analyzing data suggests that travelers opt for either flexible or non-refundable plans based on their specific travel needs and booking lead times. Offering both options ensures your rates remain attractive to a broad customer base.
Additionally, partners who provide both rate plans in Seekda, each with its payment and cancellation policy, experience a higher percentage of bookings. There's a potential loss of guests if both non-refundable and fully flexible rate plans aren't offered.
In Seekda, creating a non-refundable rate slightly cheaper than regular rates with 100% payment upon reservation and no possibility of a refund is possible. Furthermore, different rules for various time periods within the same cancellation policy can be implemented. Even if a dedicated non-refundable rate isn't offered, regular rates can be made non-refundable for specific periods, such as during high season.
Booking.com advocates for two base rate plans, citing properties with both plans and the Early Booker Deal experiencing a 5% increase in bookings, an 11% boost in exposure, and a 9% reduction in cancellations. Seizing this opportunity now can optimize your hotel's performance.
