Sample interview questions: How do you handle pricing and revenue decisions for revenue management in different hotel locations, such as city centers versus suburban areas?
Sample answer:
Pricing and Revenue Decisions for Different Hotel Locations
City Centers
- Higher ADR (Average Daily Rate): City center hotels typically command higher rates due to increased demand from business travelers, tourists, and convention attendees.
- Demand-Driven Pricing: Demand fluctuations are significant, with higher demand during weekdays and event weekends. Revenue managers use real-time data to adjust rates accordingly.
- Competitive Landscape: Intense competition from other city center hotels requires careful analysis of competitors’ pricing and market share.
- Emphasis on Premium Services: City center hotels often offer premium services such as room service, concierge, and fitness centers, which justify higher rates.
Suburban Areas
- Seasonal Demand: Suburban hotels may experience seasonal fluctuations in demand, with higher occupancy during vacation periods and lower occupancy during weekdays.
- Value-Based Pricing: Suburban hotels often emphasize value for money, offering lower rates compared to city center properties.
- Focus on Occupancy: Revenue managers prioritize maximizing occupancy to ensure profitability during slower periods.
- Package Deals: Suburban hot… Read full answer