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Why do hotels keep changing their rates?

It's called yield management

Hotels keep changing their rates for many reasons, they always need to optimize their revenue by updating hotel rates. 


Why do hotel prices drop?



Basically, it's one part law of supply and demand, and one part common sense.



From a hotel's manger own words:


"I run a hotel, for example, where the rack rate is about $100 a night. So, if it's a busy night, I know I'm going to fill up, and I know I can get the rate, I'm going to try for $125 per night with walk-in guests and new reservations: usually what I'll get is people who are happy to get the room at whatever they're asked to pay. On the other hand, if it's slow and I'm sitting on a bunch of empty rooms, a $75 rate is better than an empty room if I encounter rate resistance from walk-in guests. (These rates will vary by property, and type of room, but they're representative...)


Now, as time approaches the booking date, the same principle applies for any date within the next month or so. If I expect it to be busy and that the hotel will be full - based upon the number of bookings for this coming Friday, or whatever day next week, that I already have - I'll tap the rates up."



Users struggle to find the best hotel and best rates and may spend looking for a hotel prior to booking up to 23 days!


Using rebookey users may save precious time by letting rebookey take care of the price dilemma.


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