Hospitality Industry Assignment help
Service Pricing Parameter Analysis In Hospitality Industry, Price is always not the decisive reason for customers to make their choice. They play definitely an important part which is taken in consideration by customers before taking any final decision. For hotels, pricing strategy is very complicated issue in itself and needs lots of deliberations before being finalized (Chain 2010, pp.8-51). This is because, it is difficult to take in consideration all the input received by customers in terms of feedback for all the diversified services Rockhampton Plaza Hotel offers. Also, since, most of the customers Rockhampton Plaza Hotel gets are either from touring agencies or booking websites, Rockhampton Plaza Hotel doesn’t has the necessary bargaining power with its customer base which are essentially very big in size. We always need categorization for pricing strategies in service industry (Consuegra, Molina&Esteban 2007). When we take this analysis in consideration, Rockhampton Plaza Hotel needs categorization of their pricing strategies. In terms of prices they should categories them for individual customers as well as for booking agents / Websites as well as group travellers. 1) For individual customers, the standard room costs individual 350 AUD per day and reservation 20 days ahead would mean 10% discount on this price. Also, the standard room will be priced for 100 AUD for six hours in day when it isoffered to those who need forrelaxation. Other detailed prices for service are2) Entertainment services – Services rate for Rockhampton Plaza Hotel is on higher side when compared with other peers by approximate 10-20%. When we take swimming pool and gym services for example.Usually the average price for 1 hour swimming pool charges is 100 AUD in this hotel and gym is of 50 AUD. 3) Food services – Food Prices are same with those of restaurants which are self-operated in this hotel. However, if we use the room service, then extra charges will be applicable as per the timing of the call. For travel agents, Hotels give discounts to them which is dependent on the volume of customers in the long term contract or for one off destination. Normally, In Queensland, for a travel group which is lower than 15 people a 15% rebate is offered by hotel. If it is more than 15, then 25% discount is offered along with other bouquet of free services. Some hotels offer entertainment rebates, some do not (Deng and Dart, 2009, pp.725-42).
Analysis of Promotion Parameter Promotional strategy for service industry is focused on achievement of two objectives- to get new customer to visit and use services, and to retain customers which are old by giving them loyalty programs. In terms of hospitality industry, they use a mix of promotional strategies which include advertising, word of mouth, referral programs as well as loyalty programs for their