Association Leadership - May/June 2018 - 10

Nightly Rates and
Booking Patterns
QUESTION: Why do rates (and for that matter,
pricing in general) vary so widely hotel to hotel?
ANSWER: Rates completely depend on supply and
demand. The room inventory that is remaining in the hotel
dictates the guest room rate. Hotel A may have a group
already contracted and that makes rates higher than Hotel
B over the same dates. Hotels rely on history to determine
peak seasons and to set reasonable rates.
ANSWER:
While the two old adages of "location, location, location"
and "supply and demand" typically dominate the hotel
strategy, as well as impact when or if you'll find value
pricing, there are several additional factors in play:
Service level. There is a fair amount of overlap
given the industry doesn't really agree on the terminology,
but whether you prefer Select over Focused Service or
Economy vs Limited service descriptions, the availability
of amenities such as an on-site restaurant or swimming
pool provides market segmentation in a broad sense for
the industry and tends to striate the pricing in a destination
more definitively than other factors.
Hotel rating. The actual meaning of how many stars
a hotel has varies somewhat depending on the source of
the rating (AAA vs Expedia, for example), but the basic idea
that more stars equates to a more luxurious, comfortable
stay and a finer attention to detail (and higher price)
holds true.
Amenities. Although basic amenities play into a
property's service level and hotel rating, the availability of
some seemingly amazing offerings can greatly impact a
hotel's pricing structure, as well as determine when you'll
find less expensive dates and patterns compared to other
hotels. Amenities such as indoor and outdoor waterparks,
spas and salons, shopping, golf and casinos can have a
tremendous impact on demand and, therefore, pricing.
10 ASSOCIATION LEADERSHIP

Nearby demand generator. Whether it's a resort
whose own amenities create the demand, a downtown,
convention center or sports-venue location, or simply being
located in a popular area of town, a property's demand
generators will have a large impact on one hotel's price
compared to another.

QUESTION: Are there certain nights/patterns of
the week that are generally cheaper than others
when booking events?
ANSWER: Tuesday/Wednesday patterns are the most
in demand patterns and, therefore, drive the rate higher.
Thursday/Friday and Sunday/Monday patterns will offer the
best rate. However, this can definitely vary from city to city
and type of hotel. For example, resorts will have different
patterns than downtown hotels.
ANSWER: If you are looking for value pricing for a specific
hotel, be flexible on your dates and day pattern. If you are
looking for value pricing for a specific date or pattern, be
flexible as to which property or location you are willing to
go with.
It's not unusual for two properties in a destination to have
completely opposite low and high demand periods. For
example, a downtown property near a convention center
may be very busy and very expensive during weekdays with
corporate clients and groups, but be able to offer preferred
pricing for rooms and events happening on the weekend.
A family-orientated resort located just outside of that same
downtown area may provide great value midweek in the fall
and spring, but be less able to do so in the middle of summer
or on weekends.

Have a question you want answered? Interested in providing
feedback to planners? Send your questions or interest to
josh@tsae.org. Participants will remain anonymous.

©ISTOCK.COM/XIEFEI

ASK A HOTELIER


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Association Leadership - May/June 2018

Table of Contents for the Digital Edition of Association Leadership - May/June 2018

Homepage
60-Second Solutions
Ask a Hotelier
Tech Talks Recap
What Every Association Professional Needs to Know About Advocacy
Are There Blind Spots in Your Sexual Harassment Policies?
Email Phishing in the New Wild West
Identifying Email Risks to Your Association
Harness the Power of Your Publication
Meetings Minute
Destination Planner
New Members
Index to Advertisers
Backpack to Briefcase
Association Leadership - May/June 2018 - Intro
Association Leadership - May/June 2018 - cover1
Association Leadership - May/June 2018 - cover2
Association Leadership - May/June 2018 - 3
Association Leadership - May/June 2018 - 4
Association Leadership - May/June 2018 - 5
Association Leadership - May/June 2018 - 6
Association Leadership - May/June 2018 - Homepage
Association Leadership - May/June 2018 - 60-Second Solutions
Association Leadership - May/June 2018 - 9
Association Leadership - May/June 2018 - Ask a Hotelier
Association Leadership - May/June 2018 - 11
Association Leadership - May/June 2018 - Tech Talks Recap
Association Leadership - May/June 2018 - 13
Association Leadership - May/June 2018 - What Every Association Professional Needs to Know About Advocacy
Association Leadership - May/June 2018 - 15
Association Leadership - May/June 2018 - 16
Association Leadership - May/June 2018 - 17
Association Leadership - May/June 2018 - 18
Association Leadership - May/June 2018 - 19
Association Leadership - May/June 2018 - Are There Blind Spots in Your Sexual Harassment Policies?
Association Leadership - May/June 2018 - 21
Association Leadership - May/June 2018 - Identifying Email Risks to Your Association
Association Leadership - May/June 2018 - 23
Association Leadership - May/June 2018 - Harness the Power of Your Publication
Association Leadership - May/June 2018 - 25
Association Leadership - May/June 2018 - Meetings Minute
Association Leadership - May/June 2018 - Destination Planner
Association Leadership - May/June 2018 - New Members
Association Leadership - May/June 2018 - Index to Advertisers
Association Leadership - May/June 2018 - Backpack to Briefcase
Association Leadership - May/June 2018 - cover3
Association Leadership - May/June 2018 - cover4
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