Price positioning strategy

Choosing a clear price positioning strategy for your base rate will help strengthen your value perception to consumers. There are several strategies you can follow;

  1. Penetration pricing strategy
  2. Equal pricing strategy
  3. Surrounding pricing strategy
  4. Skimming pricing strategy

Penetration Pricing Strategy

The local market accepts and understands your positioning: you may be among the cheapest in tow which is ok if that positioning does not drive the market rates down.

Is there an opportunity to still sell more expensive on specific periods? How does your client value your hotel?

Equal Pricing Strategy

The hotel sells at comparable rates.
Does your value proposition make the difference in the clients' decisions?

Surrounding Pricing Strategy

Your first room type will be the cheapest in the market or among the cheapest ones. Your superior room type will be sold at a rate close to the first available rates of your competitors.

The key success is to offer added value, with the room types you have are you offering better facilities or specific features, and additional amenities.

Skimming Pricing Strategy

The skim strategy is to position clearly your hotel among the most expensive. Price leaders often achieve among the highest profitability.

> Continue to Price segmentation

Revenue management

Goal and mission 
Market segmentation 
Pricing and rates 

- Rate parity
- Price strategy
- Price segmentation 
- Pricing grid
Budgets, forecasting and a demand calendar 
Capacity allocation 
IT / Analysis support tools