Different Tariff Plans used in Hotels

TARIFF PLANS USED IN HOTEL

 Published by :- Vikram

what is tariff plan or card?

 TARIFF

—Tariff means rate and when applied to rooms of a hotel it means room rate.

—Hotel room rate fixation is a difficult task. They are both qualifiable and quantifiable.

—The quantifiable aspect is that they can be measured and strutted to meet certain criteria.

—The qualifiable aspect is that large amount of discretion are allowed in which rates are implemented.

—The  combination of all the rates offered at a hotel is called “Rate Structure.

BASIS OF CHARGING

—Competition

—Customer’s profile

—Standards of service

—Locality

—Various amenities

—Room location

—Publicity

—Price cuts for special business

COMPETITION—Rates must be competitive with other hotels of the same standard and providing almost similar services and facilities as provided by other hotels situated in the same vicinity of the city.

 CUSTOMER’S PROFILE

—The category of customers coming to the hotel  must also be considered.

—Their social status and financial status.

—Example. Paying capacity , should be kept in mind.

STANDARDS OF SERVICES

—Standards of services  provided by the hotel are also important while fixing room tariff.

—The U.S.P. of hotel should be kept in mind while deciding the room tariff.

—More the amenities , higher the standard , so also higher the room rate.

LOCALITY 

—The locality in which the hotel is situated gains prominence while fixing room rates.

—If the hotel is situated in a posh locality where all the shopping malls and other facilities, approaches to airports are worthy. room rate would be comparably higher .

—The guest would not mind paying more if he get amenities and facilities to his taste and likings.

VARIOUS AMENITIES

—Various amenities the hotel is going to provide to the guests such as air –conditioning in all the rooms , carpeting, swimming pool & tennis court equipment , conference halls , lobbies.

—Special aspects of continental and Indian cuisine , cutlery and crockery , modern equipments and machinery.

—These things do count when factors of room – rates are considered.

ROOM LOCATION

—The location of the room also matters a lot.

Front rooms and rooms opening to better views would cost more  than dark rooms , corner rooms or opening to indifferent chambers

PUBLICITY

—The amount of publicity done by a hotel and special budgets prescribed for hotel publicity also matters in deciding the room rates.

This type of expense has to be adjusted somehow  as it has no source of return  but is a must in popularizing the various services of a hotel

ROOM TARIFF CARD

§Room tariff is a document  published by the hotel for use by the travel trade , organization and individual prospective guest.

§The list includes prices of rooms classified into different categories , such as single room , double room , twin room , suites , etc. and meal plans such as American , European and Continental etc.

§Meals such as American , European and Continental also.

 SEASONAL RATE, CRIB

RATE AND EXTRA BED RATE

§Seasonal Rate: Season and Resort hotel which usually have fluctuating demand change their rate usually as per the seasonally and offer different rates for In season and off season.

§Crib Rate : A special rate applicable to children below 12 years of age and accompanying their parents.

§Extra bed Rate: Generally one fourth of the published room rate.

FAMILY RATE

—Special rates for families – for example , one couple and a child below 5 years , then the rate may be for one double room.

One couple with two children below 12 years , the rate may be one double room plus one extra bed rate etc.

GROUP RATE

—A Room tariff published in a document to group operators which is commissionable only to retail travel agents , tour operators and wholesalers.

—Generally commission-able at 10% of the published rack rate.

RACK RATE

—Rack rate is a term which refers to the normal room rate of the hotel.

—This is the room rate which is published on the room tariff card.

This is also the rate which is written on the Shannon slip which is slipped in room rate of those hotels which operate on Whitney system

CORPORATE RATE

—This programmes covers corporate offices and usually 15-25%discount can be given to the officers coming from corporate.

—The corporate rate  is widely accepted as the transient target rate for most hotels.

This is simply an average rate goal a hotel fixes achieve for a certain day or market segment