Hello,
I am interested in a learning a practical way of arriving at a pricing mechanism for hotel rooms. From basics costing salaries, cleaning, water and electricity, etc. how do I get to setting a price for a hotel room?
Thanks
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tackling it from wrong angle
Your room price needs to be set at what the market will pay for a room in your hotel against others in market and where you sit against them and where you figure on the booking sites. You will find occupancy will drop the higher you price and vice versa there is a sweet spot where you make most money where you have best occupancy and price for your operation (occupancy at about 80%)you then need to cut your costs to match what you sell the room for. Staff costs should be about 30% of revenue in general but depends on type of operation it is and what other income is derived through hotel from functions and weddings etc.