{"id":10752,"date":"2021-07-14T23:31:33","date_gmt":"2021-07-15T04:31:33","guid":{"rendered":"https:\/\/lobbypms.com\/uncategorized\/how-to-calculate-the-price-of-hotel-rooms\/"},"modified":"2025-02-21T11:40:39","modified_gmt":"2025-02-21T16:40:39","slug":"how-to-calculate-the-price-of-hotel-rooms","status":"publish","type":"post","link":"https:\/\/lobbypms.com\/en\/boost-hotel\/how-to-calculate-the-price-of-hotel-rooms\/","title":{"rendered":"How to calculate the price of hotel rooms?"},"content":{"rendered":" \n

Calculating the price of a hotel room<\/strong> to determine the best starting price on the market is a task that must be carried out for all properties, always taking into account different variables.<\/p> \n \n

Hotel room pricing is generally set once a year in a process in which the 3 levels of pricing are analyzed and a strategy is established to work with them depending on the time of year we are living in. In addition, take advantage of the flexibility that your hotel PMS<\/a><\/strong> gives you to easily update your rates on the hotel’s different direct sales channels. <\/p> \n \n

It is important to note that this analysis should be repeated as many times as necessary when significant changes occur in the behavior or variables of any of the 3 levels. If you have an adequate channel manager<\/strong><\/a> , updating these types of changes (rates) in your sales channels will surely not involve much work. <\/p> \n \n

\"Calculate<\/figure> \n \n

What are the 3 levels to consider when calculating the price of a room?<\/h2> \n \n

Regarding how to calculate the average rate of a hotel,<\/strong> you must first take into account the 3 levels to correctly define the prices of a hotel room:<\/p> \n \n

Industry Level:<\/h3> \n \n

To calculate the price of a room in your hotel, the first thing to consider is the industry, and this point refers to the financial part. This is where we evaluate our costs, both fixed and variable, and financially define the value at which we should sell our hotel rooms<\/strong> to meet the break-even points and subsequently the expected profits.<\/p> \n \n

Market Level:<\/h3> \n \n

It refers to our set of competitors and the square in which our property is located. Since our hotel rooms will be competing with others already on the market, we need to see what a room like ours is selling for today.<\/strong> In this way, we will try to adjust our rates so as not to be left out of the market due to a lack of competitiveness in prices. We must also be clear about the additional services that each property offers and that are included in the nightly rate. In this way, the task of calculating the price of a hotel room will be more effective. <\/p> \n \n

Transactional Level<\/h3> \n \n

This level is managed by revenue managers and refers to the price movements that must be made according to the purchase conditions. This is because we should not charge the same to someone who buys a room from us in advance, or who is staying more nights than usual, or who is buying specific days of the week. <\/p> \n \n

\"How<\/figure> \n \n

What implicit variables exist in these 3 levels of room pricing?<\/h2> \n \n

With these concepts clear, we will be able to calculate the average rate of a hotel or, to be more specific, the price of a hotel room in an appropriate manner<\/strong> , without forgetting that we must take into account all the variables implicit in these 3 levels. Below, we list some tasks that you must perform at each level in order to carry out the price assignment appropriately: <\/p> \n \n

For the Industry Level:<\/h3> \n \n