Question
Topic: Customer Behavior
Hotel Price "a La Carte"?. Pros & Cons.
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The kind of tourist I'm targeting are not enough (at the moment) and I'm thinking how to catch some more from competitors who offer a slightly lower price (-15%) but not the same service.
Most of those lost prospects admit that I offer a good "value for money" but want to spend less due to their budget.
Do you think that a "price a la carte" could be a way to keep some of them? Let's see the numbers: my rack price for a double is about 40 USD, which include a good breakfast, daily cleaning and towel change, free Internet.
I could lower to 34 USD (15% less), then widening my market share, if the client doesn't need(want) some of those services.
No daily cleaning? 2 USD off
No towel change? 2 USD off
Basic breakfast? 1 USD off
No Internet? 1 USD off
They can of course decide -at any time- what to get and pay for. If this strategy is going to work I will then have to sell the rooms not at 40 USD but "starting at 34 USD only".
Is this "guerrilla mktg"? Since tourists are one time only visitors of this area, I think that to give a try will not be harmful.
What impact could this "strategy" have? Pros? Cons?
Many thanks in advance.
Fla