When it comes to pricing a hotel room, flat or villa, different factors such as quality, season and the benefits of the accommodation need to be taken into account. But these factors do not take into account the user's experience and psychology, which are the most important when it comes to getting direct bookings.
We explain the pricing strategies that will help you convince the user to book on your website.
1. Direct customer discount
The user who is looking at your hotel website has probably first visited your accommodation on Booking.com and has come to your website to compare prices. To ensure a direct booking, we recommend that you have the prices on your website 5% cheaper, and that you clearly indicate that the discount is given to direct customers. Seeing a better price will attract the user to book on your website.
We recommend not to lower the price too much, as the customer might be suspicious if there is a big difference between the website and the OTAs, ideally between 3% and 7%.
Tip: Take advantage of the billboard effect and rate parity
Keep the same price on all OTAs and channels, except on the web, where a better price and conditions are offered.
2. Customer psychology
Avoid rounded prices because they seem higher, e.g. 99€/night, attracts more than 100€/night. Even if the difference is minimal, the customer will always take the first figure.
Another psychological strategy to boost the booking is the use of accelerators. These are messages that appear during the room selection process. In our booking engine we have two types, positive reinforcement accelerators that persuade the user to book at that very moment, and sense of urgency accelerators that create a sense of pressure.
Accelerators created with the CloudHotelier Booking Engine
3. The most effective discounts
Accommodations tend to have different types of audiences that will be interested in a particular offer. Use different types of discounts to get them all right. We recommend using at least two discounts each season to cover the weaker months or justify the minimum stay in the more touristy months.
The discounts that work best:
- Early booking: favours more organised clients who book their stay well in advance. Always be one step ahead and organise your prices and availability for the next season in advance.
- Repeat customer: you will get repeat guests and prevent them from staying at other hotels.
- Long stay: to encourage guests to stay longer at your hotel. It is very effective, as the price per day ratio is cheaper and many people take advantage of it to extend their stay.
- Last minute: you will fill the rooms that have been left empty by attracting people who organise their holidays at the last minute.
- End of season: you will attract people who have not been able to travel in high season.
Discounts created with CloudHotelier Booking Engine
4. Extras (upselling)
Extras add value to the booking by increasing its value with options that are not available on Booking.com.
One strategy would be to present a free extra next to the paid extras, as a welcome gift for direct customers only. By seeing a free extra, the customer will be allowed to spend on another extra such as a massage, a dinner... The price of the extras should never exceed the price of a night in the hotel.
Our CloudHotelier engine allows the creation of all kinds of extras in order to carry out strategies like this.
Extras created with the CloudHotelier Booking Engine
5. BONUS Added value with experiences
Some of our clients offer experience packages, where the user books an activity, not just a room. By presenting the experience instead of the room, the customer will be more willing to spend on an activity with accommodation included, than on a simple room and you will bring an added value that OTAs can't compete with.
When pricing your accommodation, keep in mind that the right strategy can help you get more direct bookings, and that a good booking engine is a must to keep a hotel website up and running.
