Booking.com offers a complex structure of rates and promotions that can be confusing, especially when combined with discounts. Here’s a simplified guide to help you manage your rates on this platform.
Types of Rates on Booking.com:
Standard Rate:
This is the base rate you offer to guests without any discounts or promotions applied.
Non-Refundable Rate:
A more economical option for guests in exchange for no cancellation option.
Partial Refundable Rate:
Combines the flexibility of the standard rate with some stricter cancellation conditions.
Length of Stay (LOS) Rates:
Discounts based on the number of nights booked, ideal for longer stays.
Common Promotions on Booking.com:
Mobile Offer:
Special discount for bookings made from mobile devices.
Genius:
A loyalty program offering 10-15% discounts to frequent customers.
Last Minute and Early Bird Offers:
Discounts for bookings made either very early or close to the arrival date.
Seasonal Promotions:
Automatic offers from Booking.com during peak seasons.
Issue of Cumulative Discounts:
When multiple promotions are active, Booking.com may combine them, which can significantly reduce the final price. For example, if you have a Non-Refundable Rate with a 10% discount and a Genius promotion with 15%, the total discount could be much higher than expected.
How to Avoid Unintended Cumulative Discounts:
Check the conditions of each promotion:
Not all promotions can be combined, so adjust settings to avoid cumulative discounts.
Limit active promotions:
Keep only the promotions that provide the greatest benefit according to your business strategy.
Block combinations:
Certain rates like Genius can be set not to apply to specific rates or in combination with other promotions.
Tips for Setting Up Rates and Promotions:
Define your pricing strategy clearly:
Evaluate which rates and promotions align with your occupancy and profitability goals.
Use the Promotions Panel:
Booking.com offers an overview of all active promotions, allowing you to adjust based on the performance of each.
Price Simulation Tool:
Use the price simulation tool in the extranet to see how combined discounts would apply and adjust the rules accordingly.
Summary:
It’s crucial to understand how rates and promotions interact on Booking.com to avoid excessive discounts that may affect profitability. Be sure to regularly review and adjust configurations, aligning rates and promotions with your business strategy.