Reasons for price adjustment of hotel products

It is influenced by hotel product cost, hotel enterprise marketing objectives, hotel product supply and demand, hotel market competition, hotel market demand and exchange rate changes.

In order to set a reasonable price of hotel products, hotel franchisees must consider various influencing factors when pricing. To sum up, there are mainly the following aspects. Hotel product cost is formed by the material consumption and labor remuneration consumed in the production process and flow of hotel products, and it is the main component of hotel product value and price. When determining the price of hotel products, hotel enterprises should compensate the total cost and obtain cashier, so the price of hotel products will exceed the cost of hotel products. Hotel product cost is a direct and basic factor affecting hotel product price. In marketing, hotel enterprises always determine the marketing target and price of hotel products according to the changing hotel market demand and their own strength, for short-term or long-term development considerations. If hotel enterprises want to operate smoothly as soon as possible, they often take obtaining cashier as the primary marketing goal, so the price of hotel products determined is far higher than the cost; If hotel enterprises want to occupy a larger market share in the hotel market, they often take increasing market share as the primary marketing goal, so the price of hotel products determined should be attractive to customers, even in the form of special offers such as preferential prices. When the relationship between supply and demand of hotel products changes, the price of hotel products will also change. Generally speaking, in the tourist season, the price of hotel products is on the rise; In the off-season, the price of hotel products shows a downward trend. Hotel market demand has an important influence on the formulation of hotel product prices. The relationship between hotel market demand and hotel product price is mainly reflected by the demand elasticity of hotel products. The demand elasticity of different hotel products is also different. Generally speaking, the demand elasticity of graded hotel products is relatively high, and hotel enterprises can stimulate customer demand and expand sales by reducing prices; However, the demand elasticity of budget hotels and restaurants is relatively low, and price changes have little effect on customer demand changes. Competition in the hotel market is an important factor affecting the pricing of hotel products. The fiercer the competition in the hotel market, the greater the impact on the pricing of hotel products. In a perfectly competitive market, hotel enterprises have no initiative in pricing and can only passively accept the prices formed in market competition. Hotel enterprises rely on improving management level and service quality to expand market share; In a completely monopolized market, a hotel product only operates and has no competitors, so it completely controls the market price.