Table of Contents
Development of discussion
In the hotel business, pricing is one of the most important factors, besides the qualities of offering service that decide the customers’ satisfaction and the reuse service tendency of these customers. In other words, it decides the profitability of each hotel chains. However, in contrast of this important role, these hotels do not apply the appropriate pricing ones as there have been inconsistent and inappropriate quoting prices implementing towards the customers. The most commonly used methods are BAR – Best Available Rates and the Yield Management method will take turn to describe and discuss about its weakness and the constituting reasons of the customers’ low appreciation regarding the hotel chains’ quoting prices. The underlying reasons of the customers are their preference to the individual prices for their staying which helps to lower the travelling expense (Rohlfs, and Kimes, 2005).
As travelling, the price rate of hotels has been the most important factor affecting the travelling decisions of customers. However, the price rate has not been always stable. According to Rohlfs, and Kimes (2007), the customers have been aware regarding the instability of the hotels’ prices which is because of the request of revenue management from upper executive persons. In details of the instable pricing, the customers asserted that it is inappropriate as hotels tend to reduce the price rates right after the booking process has been completed. As a result, these customers have to depend on the third party distributors to compare the offering prices of the hotels with the hope to receive the lower prices rates. It is due to the inconsistent pricing strategies of these hotel chains that the customers have gradually holding negative points of view regarding the prices rates: a research conducted by Rohlfs, and Kimes (2007) with 153 travelers in three airports: Dallas, Pittsburg, Ithaca. Initiating from this background, this paper aims to clarify and discuss with respect to the perceptions of the customers on the best available hotel rates. The structure will starts with the abstract and introduction of the issue which are later followed by the discussion at in-depth extent regarding the issue, and finally is the conclusion part. II. Development of discussion
According to the research of Rohlfs, and Kimes (2007), it is the Best Available Rate (BAR) which puts a constraint on the customers’ positive awareness about the hotel chains’ price rates. BAR is defined as the method used by hotels to classify ineligible rates which are calculated by the customers’ arrival date and the period of time staying indicating the booking information. BAR is used through a single rate type with one or more seasons by which the pricing strategies could be controlled. With respect to the role of BAR, Rohlfs, and Kimes (2005) asserted that there will be reduction in the customers’ confusion about the pricing of the hotels as well as receiving the lowest prices rates while staying for long days with the hotel chains. In other words, BAR would help these customers to pay different fees for different staying days. Towards the hotels, once there has been clear understanding of the customers regarding BAR, these hotels would be able to implement the tools of managing revenue with no violation on the customers’ satisfaction. The customers have been mostly unsatisfied with the hotels for pricing different rates with respect to various parts of the reservation enquiry, for instance overnight accommodation, foods and beverage servicing, and leisure and meeting rooms etc. (Donaghy, McMahon-Beattiem, and McDowell, 1997). As a result, this has led to the loss of such a large amount of business opportunities for these hotel chains as the rooms had been unable to be serviced for the customers. Therefore, the...
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