Sample interview questions: How do you handle pricing and revenue decisions for revenue management in different hotel markets, such as urban or resort destinations?
Sample answer:
Pricing and Revenue Decisions in Different Hotel Markets
Urban Destinations:
- High Demand: Urban destinations experience high demand during weekdays due to business travel.
- Weekend Demand: Demand drops on weekends, offering opportunities for weekend packages and discounts.
- Competition: Intense competition requires competitive pricing and strategic use of promotions to attract guests.
- Pricing: Implement rate parity across channels to avoid undercutting and price discrimination.
- Revenue Management: Use dynamic pricing strategies to adjust rates based on demand fluctuations.
- Forecasting: Monitor market trends and utilize forecasting tools to anticipate demand and adjust pricing accordingly.
Resort Destinations:
- Seasonal Demand: Resorts have seasonal demand patterns, with peaks during holidays and off-seasons.
- Leisure Travel: Focus on leisure travelers, who may be more price-sensitive and seek value-added experiences.
- Packages and Bundles: Offer bundled packages that combine accommodation with activities or amenities… Read full answer