Today's Revenue Management thought:-

Disadvantages of Per Person Pricing

Despite its advantages, per person pricing also has notable drawbacks. One significant challenge is the potential for guest dissatisfaction. Some guests may perceive this pricing model as nickel-and-diming, particularly if they are used to per room rates. This perception can lead to negative reviews and a decrease in guest loyalty.

Another issue is the complexity of implementation. Accurately tracking the number of guests and ensuring that the per person rates are applied correctly requires sophisticated booking systems and vigilant staff. Smaller hotels or those with limited technological resources may find this challenging to manage effectively.

Per person pricing can also complicate the booking process. Guests may find it cumbersome to calculate total costs, especially when comparing rates with other hotels that use a per room pricing strategy. This complexity can potentially drive customers to competitors offering simpler pricing models.

Moreover, this pricing strategy might not always maximize revenue. For example, solo travelers might feel they are paying disproportionately high rates if the base price includes the cost of amenities they don't fully utilize. This can make the hotel less appealing to certain segments of travelers, reducing occupancy rates.

Have a profitable week !

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