As Hotel General Manager I reflect on this question because of the obsession of many customers to “haggle” the price of the room, impulsively as if they were in a Souk or Market. (Merkato in Addis Ababa). I can see my reception staff looking sometimes as if they would be working in a Souk or street market.
If guests already know in advance through OTAs, Metasearch engines, own websites with booking engines … and the walk-in with the best available rate after consulting us.
The prices of the rooms are not random, there is a previous work behind that due to market studies, hotel characteristics, location, and dates.
They are not susceptible to being changed, not even with that obsessive-compulsive bargaining.
But there we are as in a Souk, given the rate, the haggling begins, that if some friends were and paid much cheaper, that I am Genius God level, and surely I get it for less than half. That I am a repeat customer and your colleagues make me a better price than you. OK the BAR (Best Available Rate), if you include a free upgrade to Suite, with a terrace, pool, and Jacuzzi …
When these customers go to Zara, McDonalds, Starbucks or Victoria’s Secrets, a good restaurant, or a local drink, they do the same given a Rate…
A lot of technology, a lot of information, a lot of mobiles but in the end, they return to ancestral times, and in the end, they end up haggling, and we hotel receptionists, it seems that we wear a turban in our uniform…
One more task that we deal with is the “receptions-souk” of our hotels.
How do you carry the haggling in your business? Do you have a settle fixed rate strategy? or do you allow the client/customer to set your prices (margins) based on their obsessive-compulsive bargaining attitude? LET US KNOW!
Hope it helps
Greetings and Thank you.
Ivan Luna
General Manager
Best Western Plus Addis Ababa, Ethiopia