Attracting guests through flexible packages – CRM for hospitality
Every consumer at one point or the other would have wondered whether ‘it is worth it’. When booking a travel or hotel package, customers go through the evaluation of expenditure and make a judgment as to whether the services being received are worth the money being spent.
Most of the customers in the hospitality market are concerned and sensitive about the price that they are charged. Prices are the most flexible part of the presentation mix in the hospitality industry. Flexibility means that the prices are not regulated and can be changed at anytime. They can be used to influence the customer, and hence provide the top management with a very versatile and useful sales tool.
A basic “package” in hospitality means Bed and Breakfast. The goal of every package is to attract reservations, generate publicity and consumer interest by offering a value-based service that is new and exciting in every sense. These components work especially well for a hospitality sector.
Designed to Lure
Pushing the package above and beyond the typical ‘Bed and Breakfast’ offering is the key. The hotels must pitch in all of their resources. The first step is to strategically list the services and amenities that are already on offer, whether it is complimentary or priced, and then putting them into a package that makes perfect sense for a specific customer. For example, to attract business travelers, the package may include Wi-Fi, breakfast, cab facility, gym access and other relevant components to turn it into a special package that does the trick!
Though most of the components on offer are complimentary, the customer perceives it as a privilege when a variety of services and amenities are listed together in a package. It not only gives them a good impression of the hotel but also gives them an opportunity to feel that they are getting more for their money. These items come at little or no cost to the hotel, but normally carry a retail rate for guests and can act as newly created, added-value illustrating savings for the customer.
Alternatively, even if many of these services are already complimentary, there is a sense of perceived value for receiving so much at once. Many hotels use a hotel CRM software to automate the creation of custom packages for group bookings. The CRM rate contracting software weighs each factor before calculating the total package price. The CRM pricing algorithm evaluates and estimates the combined pricing that includes various factors such as seasonal demand, number of visitors, offered facilities, food features, current vacancy, taxes, inclusions, etc.
Lure without loopholes
The internet has made it very easy for the tech-savvy, new-age consumers to compare and analyze rates. The last thing a hotel wants is for a potential guest to discover that the package is actually a bad deal! The hotel CRM software can ensure that the package is recognized and the rate assigned to the package is less than the retail value and reinforces the value proposition, making it free of any loop holes.
Though the packaging is not the answer to every problem, it definitely is an attention grabber. If done correctly and effectively, flexible packaging can and will attract customers, keeping the hotel’s occupancy full at all times.
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