Benchmark Rate

Benchmark Rate

Benchmark rate is a room-only, non-discounted rate that is always available whenever standard sleeping room availability exists at the property. If restrictions are used on this rate, they are no more severe than the restrictions on any other transient rate available for sale.

Benchmark Rate

Should be :

  • The benchmark rate is the rate in a property’s pricing structure that is market-based and reflects an excellent price/value to the customer.
  • The benchmark rate should be positioned to capture the majority of your property’s non-qualified demand.
  • The benchmark rate is used as the basis for positioning premium and discounted rates.
  • A properly positioned benchmark rate maximizes hotel revenue and profit.

Centralized Rate , Ceiling Rate also known as Rack Rate, Walk-In Rate. this is the

basic Rate (Starting Point) always align to hotel budget. is standard rate is win-win Rate, covering room cost, and affordable to guest , But factors to consider  when setting Benchmark Rate

Benchmark Rate Benchmark Rate

The Following Steps are most common procedures among hotel chain.Important the following steps you will repeated same procedures when we create Resort Rate

What to consider when Establishing Rate

  • When to consider the changes of rate you anticipate will occur in your market and the economic forecasts for the following year.
  • This is your starting point. You will then use this Fixed Corporate Rate when making the rest of the pricing decisions can be with Revenue Team Leader, G.Manager, Dir of Sales & Marketing
  • As markets and customers change, it is important to carefully consider all Rate options, even if you did not offer some of them last year.

SPECIAL CORPORATE RATES 

Benchmark Rate Benchmark RateUsually You will be asked to Rate each account according to four rate products: Fixed Corporate Rate,  Net-Non Commissionable Rate, any other Account Rate

A hotel needs to develop a pricing strategy for both its transient and its group business. While the benchmark rate is the main price point for Individuals, group rates are based on a different set of criteria and vary between groups.

RATE PROGRAM 

Promotions, discount program Rate, could offer to

Benchmark Rate Benchmark Rate

There are 4 Steps for setting up proper Rate

 Analyze the Competition

Benchmark Rate Benchmark Rate

Assess Property Performance

you pay a visit to your compotators holding punch of sheets, and you keep recording  every single question you ask

Benchmark Rate Benchmark Rate


Benchmark Rate Benchmark Rate

 

Benchmark Rate Benchmark Rate

Benchmark Rate Benchmark Rate

Analyze Market Share

Benchmark Rate Benchmark Rate

 

Project Future Demand and Supply

Benchmark Rate is mysterious

But why all those steps. Seems complicated ? this is why Int. Chain dominates the market

After we follow above steps. And when season kick off. You will need to create one more xls sheet, to answer below questions, this is one of the Most important follow up step of Revenue Strategy

Benchmark/Standard/Ceiling  Rate Evaluator- Is your hotel’s benchmark rate potentially overpriced or overpriced? This tool identifies hotels that warrant further analysis.  Three criteria are used –  price sensitivity, discounts given to negotiated rates, and transient rate efficiency