Welcome to the Friday Freebie!
Each week we share one impactful hotel marketing tactic that you can implement immediately to drive more conversions and more revenue.
This week’s freebie: Change ONE number to make your room rates more appealing.
Normally, establishing your hotel’s room rates is a rational practice, based on current market conditions, prior trends, weather, current occupancy and other hard data.
However, many hoteliers overlook a vital element when establishing prices:
The PSYCHOLOGY of what makes a hotel guest choose one price over another.
This is known to marketers as price psychology. And, one of the best tried and true price psychology practices is using “The Rule of 9” in your room rates.
Here’s how it works:
People read numbers left to right… and since they tend to scan numbers very quickly, they associate the price with the very first number they see. For example, $99 seems closer to $90, even though it is just a dollar away from $100. This is why travelers consider room rates ending in 9 or 99 or 95 as better values overall.
Even luxury brands such as Apple and Coach use this practice.
Give this tactic a try and experiment by changing your $305/night suite to $295 or $299.
Get More: 3 Things Revenue Managers Can Learn From Psychologists
Tambourine uses technology and creativity to increase revenue for hotels and destinations worldwide. The firm, now in its 33rd year, is located in New York City and Fort Lauderdale. Please visit: www.Tambourine.com