Attract Guests with Smart Pricing Despite Shortages

1. Be Honest: Clearly inform guests about inventory limits on all booking channels. 2. Flexible Pricing: Adjust rates based on availability, offering special deals during less busy periods. 3. Add Value: Provide extra amenities and unique experiences to enhance stays. 4. Engage Proactively: Communicate with booked guests about the situation and offer alternatives. 5. Use Feedback: Gather and act on guest feedback to improve future stays.

While packages cater to a specific set of segment of the clientele. Dynamic pricing is a major phenomenon irrespective of the segmentation and is based on various factors that impact demand of your offerings in the market. Dynamic pricing involves not just playing the price game but also strategically leveraging all the levers to ensure optimal revenue management for the offerings / inventory on offer.

Last updated on Jul 16, 2024

Facing inventory shortages at your resort, how do you ensure pricing strategies still attract guests?

Facing inventory shortages can be a daunting challenge for any resort manager. It's a delicate balancing act between maintaining profitability and ensuring that your guests feel they're receiving value for their money. With the right pricing strategies, even when inventory is low, you can continue to attract and satisfy guests. Understanding the value proposition of your resort, being transparent with guests about any shortages, and offering alternative perks or experiences can go a long way in maintaining customer satisfaction and loyalty. In the following sections, you'll discover how to navigate these tricky waters and keep your resort thriving.

1 Value Pricing

As you grapple with inventory shortages at your resort, consider adopting a value pricing strategy. This approach focuses on the overall guest experience rather than just the cost. Highlight the unique aspects of your resort that remain unaffected by inventory issues, such as exceptional service or a stunning location. Offer packages that combine different services and amenities at a set price, which can help mask the impact of shortages by providing guests with a perception of added value. By emphasizing the quality and exclusivity of the experience, you can justify maintaining current price points or even slightly increasing them without deterring guests.

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Ei Nge Moe

Regional Sales Manager @ AIA Myanmar |Experienced Sales Leader | Elevating Team Performance
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Consider creating value-added packages that offer more without lowering rates (such as Full board or half board rates, inclusive Spa treatment.. and so on) and also implementing early bird and last-minute deals. Provide flexible booking terms and conditions, and offer special rates for locals. Collaborate with airlines to create attractive package deals that combine flights and accomodations. Engage and connect with potential guests on social media by partnering with influencers to expand your reach. Encourage referrals by offering discounts and rewards for successful recommendations since referrals are important for business growth.

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Vishwas Saxena

Revenue Growth Strategist | Driving Profitability & Client Relationships
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It all depends on the segmentation of the clients isnt it? A leisure traveler is always looking for packages while a corporate traveler will be more interested in economical / aggressive price points! Packages or Value pricing is not a new concept and is being regularly adopted by leisure properties. This basically combines two or more offerings to create a combo deal which can offer some great value for money proposition for the end consumer.

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2 Package Deals

In the face of inventory constraints, crafting attractive package deals can be a game-changer. By bundling services and amenities into one attractive price, you not only offer convenience but also create a sense of added value. For example, pairing a room with a discounted spa service or a complimentary meal at the resort's restaurant can make guests feel they're getting more for their money, mitigating the impact of any shortages. These packages can be tailored to different guest segments, ensuring that you're offering something appealing to families, couples, or solo travelers alike.

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3 Loyalty Rewards

Leverage your loyalty program to mitigate the effects of inventory shortages. Offer your loyal guests exclusive deals or points that can be redeemed for future stays or upgrades when inventory normalizes. This not only incentivizes guests to book despite current limitations but also fosters long-term loyalty. Communicate openly with your members about inventory issues and how you're addressing them. This transparency, combined with the promise of future rewards, can help maintain trust and encourage bookings.

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4 Dynamic Pricing

Implementing dynamic pricing can be an effective tool during inventory shortages. This strategy involves adjusting prices in real-time based on demand, booking patterns, and remaining inventory. Use a revenue management system to track these variables and set prices accordingly. When inventory is low but demand is high, prices can increase to maximize revenue. Conversely, if demand dips, lower prices can attract price-sensitive guests. The key is to remain flexible and responsive to market conditions while ensuring guests still perceive value in their stay.

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Vishwas Saxena

Revenue Growth Strategist | Driving Profitability & Client Relationships
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While packages cater to a specific set of segment of the clientele. Dynamic pricing is a major phenomenon irrespective of the segmentation and is based on various factors that impact demand of your offerings in the market. Dynamic pricing involves not just playing the price game but also strategically leveraging all the levers to ensure optimal revenue management for the offerings / inventory on offer.

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5 Alternative Offers

When inventory shortages hit, get creative with alternative offers. For example, if certain room types are unavailable, provide guests with an opportunity to experience other aspects of your resort at a discounted rate, such as dining credits or recreational activities. This not only compensates for the inventory shortfall but also introduces guests to services they might not have otherwise tried. It's a way to turn a potential negative into an opportunity to enhance the guest experience and build satisfaction.

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6 Transparent Communication

Transparent communication is crucial when managing inventory shortages. Be upfront with potential guests about what is unavailable and explain why. However, don't stop there; highlight what is available and how you're going above and beyond to ensure their stay will still be memorable. By managing expectations and being honest about the situation, you build trust with guests. This trust can translate into bookings, as guests appreciate your candor and feel confident that they will still receive a quality experience at your resort.

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Prashant Mishra

Entrepreneur | Hotelier | Analyst | Host : Connecting The Dots - The Hospitality Podcast
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1. Be Honest: Clearly inform guests about inventory limits on all booking channels. 2. Flexible Pricing: Adjust rates based on availability, offering special deals during less busy periods. 3. Add Value: Provide extra amenities and unique experiences to enhance stays. 4. Engage Proactively: Communicate with booked guests about the situation and offer alternatives. 5. Use Feedback: Gather and act on guest feedback to improve future stays.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Facing inventory shortages at your resort, how do you ensure pricing strategies still attract guests?

1

2

3

4

5

6

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1 Value Pricing

2 Package Deals

3 Loyalty Rewards

4 Dynamic Pricing

5 Alternative Offers

6 Transparent Communication

7 Here’s what else to consider

Hospitality Management

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Facing inventory shortages at your resort, how do you ensure pricing strategies still attract guests?

1

2

3

4

5

6

7

1 Value Pricing

2 Package Deals

3 Loyalty Rewards

4 Dynamic Pricing

5 Alternative Offers

6 Transparent Communication

7 Here’s what else to consider

Hospitality Management

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