Stop running behind 4s and 9s!

HospiBuz Desk

The charm prices are no more charming. People today are way more globalized than they were 2 decades back. Their psyche is changed and they very well understand the game psychological game of charm prices.

The traditional hotel pricing rates end with ‘9’. It is based on the psychology to get closest to the next rounding number without going over it. The idea behind it is that people will find Rs 2,999 cheaper than Rs 3,000. When the difference is just Rs 1. The theory was proven earlier and it worked as well. But it is solemnly hilarious for today’s generation. When the game of 9 failed in affecting the customers, we started running behind ‘4’, considering that people will find Rs 2,994 cheaper than Rs 3,000. The difference again is almost nil.

OTAs are ruling the industry. We have end number of sites selling rooms today. We seriously need to get over this looming strategy of charm price. What’s grabbing the attention of today’s generation is the discounted prices and loyalty programs. The revenue managers need to focus on curating such packages and programs. Long stays with a little more discount can definitely attract customers. It can make them your loyal members as well

One thing which we need to focus on is that these discounted rates rarely end with 4 or 9. Few websites are providing options to customers where they can decide their price and the stay will be curated accordingly. Think about it from a customer’s point of view. If you get a stay in your curated price and hotel gives you something complementary with it. You will definitely call it a perfect stay. Even little complimentary things can help in making your customers frequent. So stop running behind 4s and 9s. You can earn more than that!!

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