Seasonality: Resort Pricing Guidelines
Seasonality: Resort Pricing Guidelines , defined as a pattern of repeating seasons over time, plays a crucial role in effectively pricing a resort property. By identifying and understanding the seasonal variations in demand, it becomes possible to set appropriate rates throughout the year and avoid turning away potential customers due to incorrect pricing.
Defining your property’s seasons is essential for proactive pricing. It helps mitigate the risk of setting inappropriate rates during different seasons and ensures that you capitalize on revenue opportunities by adjusting transient rates when necessary. As occupancy and demand fluctuate, the opportunity to make rate adjustments arises.
First To define your property’s seasons, you can employ various tools to analyze trends in occupancy and demand. Start by reviewing your property’s performance compared to your competitors using the Occupancy, Average Room Rate, and RevPAR Charts from your most recent Market Share Report. Drawing vertical lines on these charts helps identify logical seasonal breaks.
Seasonality: Resort Pricing Guidelines
Upon evaluating the lines drawn on the charts, consider the following questions:
- Do the lines on the Occupancy and Average Room Rate graphs confirm your current seasons?
- Do the lines on the Occupancy and Average Room Rate graphs coincide with each other? If not, what factors contribute to the differences?
- Do the Occupancy trends between your property and the competitors mirror each other? If not, why?
- Do the Average Room Rate trends between your property and the competitors mirror each other? If not, why?
- Do the RevPAR trends between your property and the competitors mirror each other? If not, why?
Based on your assessment and answers to these questions, you may have opportunities to redefine some of your seasons. However, it is essential to validate your findings by comparing occupancy trends with transient demand turndowns. Tools such as Online Turndown Reports, Summary Demand Reports, and Transient Turndown Reports by Rate Type can provide valuable information.
Here are a few important points to consider about seasons:
- Weekday and weekend seasonality should be evaluated separately in most cases, depending on the dynamics of the marketplace and customer mix.
- Seasons can range from a few days to one year, but they must be contiguous.
- Rate changes ideally begin and end on a Friday (weekend transient) or Sunday (weekday transient), although properties with seven-day strategies may have different start and end days.
- The number of seasons can vary by region, market, and property, with four seasons (Low, Shoulder, High, Shoulder) being common.
- Seasons may differ by segment, such as transient and group.
Steps for Establishing Seasonality
For further information, you can refer to the provided link and explore additional videos on the Finally Check out Youtube channel.