Room tariff Used In Hotel
Room tariff Used In Hotel
Room Tariff
· Basis of charging
1.
Night basis
Hotel charge room rent to guest basis on spending no of nights in hotel.
It is outdated method in hotel industry.
Hotel charge room rent to guest basis on spending no of nights in hotel.
It is outdated method in hotel industry.
2.
Twenty-four hour basis
Hotel charge room rent to guest basis on twenty-four hour.
It is also outdated method but small hotel follow this method nowdays.
Ex: One guest stay in hotel at 10:00 am then completed one days, next days 10:00am.
Hotel charge room rent to guest basis on twenty-four hour.
It is also outdated method but small hotel follow this method nowdays.
Ex: One guest stay in hotel at 10:00 am then completed one days, next days 10:00am.
3.
Check-in/Check-out basis
Hotel charge room rent to guest basis on check-in/check-out.
Mostly hotels have 12:00am for check-in/check-out time.
Hotel charge room rent to guest basis on check-in/check-out.
Mostly hotels have 12:00am for check-in/check-out time.
·
Factors affecting room tariff
1.
Meal Plans
(a)
Continental Plan (CP)
It consists of room charge with continental breakfast.
It consists of room charge with continental breakfast.
(b)
European Plan (EP)
It consists only room charge and meals are charged separately.
It consists only room charge and meals are charged separately.
(c)
American Plan (AP)
It consists room rate with all meals like - breakfast, lunch, and dinner.
It consists room rate with all meals like - breakfast, lunch, and dinner.
(d)
Modified American Plan (MAP)
It consists room rate with breakfast, and either lunch or dinner.
It consists room rate with breakfast, and either lunch or dinner.
(e)
Bed and breakfast or Bermuda Plan (B&B)
It consists room rate with American breakfast.
It consists room rate with American breakfast.
2. Customer’s profile
3.
Standards
of service
You dicided standards of service before plan of tariff.
You dicided standards of service before plan of tariff.
4.
Amenities
Hotel proviede to free or chargeable many amenities.
It affect to room tariff.
Hotel proviede to free or chargeable many amenities.
It affect to room tariff.
5.
Cost
Room tariff major affected through cost of infrastructure of hotel.
Hotel's owner want to minimum return according to investment.
Room tariff major affected through cost of infrastructure of hotel.
Hotel's owner want to minimum return according to investment.
6.
Location
Hotel located near airport, railways, bus stands, or city center and so on then room tariff is high.
Hotel located near airport, railways, bus stands, or city center and so on then room tariff is high.
7.
Target market
It means which kind of guest attracts towards hotel such as business person, traveler, transists, or vacation traveler.
It means which kind of guest attracts towards hotel such as business person, traveler, transists, or vacation traveler.
·
Room Tariff
Fixation
1.
Cost – based pricing
(a)
Rule of thumb approach
(b)
Hubbert formula
2.
Market – based pricing
(a)
Rate cutting
(b)
Market tolerance
(c)
As per compitition
(d)
Guest requirements
(e)
Inclusive and non-inclusive rates
·
Different types of tariffs
1.
Rack rate
Ract rate, means room rate on tariff card without allowed discount.
Ex - Rack rate for standard room may be 5000++ (++ means taxes extra).
Ract rate, means room rate on tariff card without allowed discount.
Ex - Rack rate for standard room may be 5000++ (++ means taxes extra).
2.
Corporates rate
Corporate rate attract to corporate market companies.
Hotels mostly provides 10% discount on rack rate
Corporate rate attract to corporate market companies.
Hotels mostly provides 10% discount on rack rate
3.
Airlines/Crew rate
This kind of rate is given to airline/crew member for continuous business.
This kind of rate is given to airline/crew member for continuous business.
4.
Groups
rate
5.
Travel
agents rate
6.
Seasonal rate
7.
Weekday/ weekend rate
8.
Government rate
9.
Educational rate
10.
Membership rate
11.
Introductory rate
12.
Crib rate
13.
Complimentary rate
14.
Volume guarantee rate
15.
Tour group wholesale rate
16.
Package rate
(a)
Holiday package
(b)
Marriage package
(c)
Meeting package
(d)
Meal package
· Key Terms
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