Several factors determine how hotel rooms are priced. Here are six to consider before your book.
Hotel room rates vary greatly, and there is often some confusion around how these prices are determined. If you’re searching for a hotel online, you'll likely find that the hotel room you select will have a different price depending on the dates you type in. There are several reasons for this fluctuation in hotel room prices. Here are six factors that impact how hotels set their rates.
Room availability and customer demand are probably the greatest contributing factors to hotel prices. If it's busy season, or there is a conference or event happening in the city, hotels are going to jack their prices up because they know the demand will be high. In these peak times, hotels also often implement certain restrictions like minimum stays.
On the flip side, during the off-season when there are fewer tourists and less demand for rooms, hotels will often drop their prices or offer special deals or packages.
If the hotel is centrally located, within walking distance of shops, restaurants and tourist attractions, chances are it’s going to be priced higher than more remote hotels that offer guests less convenience.
Hotels typically offer at least three different categories of room: standard, family room and suite. The more deluxe the amenities, the more the room will cost.
Hotels look to see what the competition is doing. They want to try to lure customers with better deals and stay competitively priced, yet still need to make a profit.
You’re going to pay top dollar during peak season, simply due to the increase in demand. On the other hand, you’ll likely be able to find good deals on hotels in the off-season, so if you're flexible with the time of year you can travel, it can be a good way to save some money.
Hotels often charge more for weekend stays than they do for weekday stays, again, simply because the demand is usually higher.
