Question

• What are the benefits for hotel to offer different price points to different guests?
• Why would it be a bad idea to offer one price point to all guests?

Answer 1

Now a days people's mindset is rounded by the brand values,

For Example:

I am running a Hotel / Lodge and have two customers one is getting down from a Bull Cart & another one who gets down from an Audi car. If we offering same Service/Room at same price to the customer A & B, next time the person from Audi will never look after to my Hotel. Because always people compare themselves with other person in the degrees of variance. It might be money, knowledge, career etc.,

So, even i am offering same service/room to both we have to maintain certain gap in the pricing. And also we have to maintain those degrees in service improvements also. That's why every company makes their products for different segments of customers at different price ranges.

In some cases even the variety is same but price varies,like we are discussing about hotels, they always has different price structures depends upon the regional aspects, capacity aspects, loyalty aspects, regularity aspects etc.,. We also see Normal Rooms, Deluxe Rooms, Luxury Rooms, Deluxe suits, Luxury suits and so on. If we take food also we maintain same variances. Some times for regular customer he offer same room at different price for mutual benefit.

For Example,

Some people like travelers always wants to taste local food. The local guy thinks that, this variety is more costly as i can prepare it by myself at cheaper than this. But for foreigner its all about the intensity to taste it.

That's why we always find high prices at tourism spots for hotels.