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What Affects the Price of a Hotel Booking?

When making a hotel booking, there are various factors that affect the overall room rate. These include: location, booking period, length of stay, amenities offered, brand, promotional tie ins.  Once you understand these, you are able to gauge whether you are receiving fair price in relation to other accommodation offered when making a hotel booking.

Whenever someone is making a hotel booking, there is a purpose in mind.  If this is a business trip, they may need to be near their intended place of work or at least near transport links that enable to conduct their business efficiently.  If this is a holiday booking, the customer may wish to be near tourist attractions…or perhaps further away in an effort to stay away from the hustle and bustle.  Everyone’s requirement is different, however subtle.  As with simple supply and demand, if many people share the same requirement, the price of a hotel booking goes up.

The time of year also affects the overall price.  The Christmas period & school holidays are typically more expensive than other periods of the year, due to increased demand.  Any special events e.g. sporting occasions such as the Olympics will also have a bearing on the price of a hotel booking.

The Effect of Hotel Branding, Facilities and Promotions on a Hotel Booking

A hotel booking is the same as purchasing a commercial product, hotels are branded fiercely, and to that end some will command a premium if they carry a well-known name.  Such chains of hotels also have the purchasing power to have tie-ups with airlines or train operators, where a transport ticket can be booked followed by a reduced rate for the hotel booking.

The facilities offered by a hotel can also substantially push up the price of a booking.  Free Wi-fi, gym facilities, shuttle buses to nearby attractions are all priced into the room rate, so it’s important to decide what you will actually use them and whether you are willing to pay the premium when making a hotel booking.

Some hotels offer special rates when you book a certain number of nights.  These are specified as free nights e.g. “book 7 nights, pay for only 6” or “children stay for free”.  These can have a dramatic effect on the overall price of a hotel booking.

The Effect of Public Opinion on the Price of a Hotel Booking

A product is only as good as what the customer perceives it to be.  The internet is the ultimate tool to sing the praises of hotel staff or conversely voice dissatisfaction of the level of service a customer has received.  This in turn can affect the number of people choosing a hotel and consequently the price a hotel can charge for a hotel booking.

There are plenty of forums available specifically created for travel where hotels can be ranked in various categories.  This is where the strengths and weaknesses of a hotel are laid bare, and can have a direct impact on the whether goes through with a hotel booking.

This should go some way to explaining why a hotel rates can differ so much, and hopefully this helps you reduce the cost of your future hotel booking.