5 Factors That Determine The Hotel Room Rates

It seems very easy to book a hotel room but when you start browsing it will become difficult to decide which hotel is offering the best deal. Travelers may get confused with the several options available. But decision making will be easy if you know how the hotel prices fluctuate and which are the important factors that have a great impact on the prices. Here are some major factors that determine the hotel room rates.

1. Time Of Year

The hotel prices greatly depend on the time of year or season when you’re traveling to a specific location. If you’re planning to travel Canada then try to plan your trip in autumn or winters because summer is the peak tourist season. So, traveling during peak season can be costly as there is greater demand for accommodation so cheap hotels in Saskatoon will charge more. This is why it is suggested to visit in off season so you could enjoy the off-season low tourist rates.

2. Location Of Hotel

Another important factor is the location of the hotel that determines the price of a hotel. If a hotel is located far away from the central city area offering less convenience to the guest have low rates. Whereas the hotels near the central city offering easy access to the shopping malls, restaurants, and tourist attraction they have high hotel room rates.

3. Room Type And Size

Typically, almost every hotel has three different categories of rooms which include standard room, family room, and suite. But this trend has changed over the last few years and now hotel rooms come in an array of size, type and style. Now the most common room types include single, double, triple, king, queen, king, double-double, and studio. Similarly, suites have two categories i.e. master suite and junior suite. The style, decor and amenities applying to that room determine the price of room. The more deluxe amenities, the higher will be the price.

4. Competitor Prices

Another important metric in the hotel price index is the competitor’s price. The more the competition, the competitors will find new ways to attract more clients or guests. In this way, they offer some discounts or hotel deals to attract more clients or guests while staying competitively priced. For example, the tough competition between the Sherwood Park hotels means every hotel will try to offer better deals than its competitors.

5. Day Of The Week

Most of the people plan a weekend trip when it comes to planning a tour because everyone loves to relax and enjoy after a full day driving or hectic working days. So the demand for the hotels increases on weekend as many people make travel plans on weekends. So, when the demand increases the hotel room prices also increases. The demand is not so much high during weekdays so the prices are also low.

Take the time and consider these factors carefully before making a reservation. Try to carefully watch and understand the relationship between demand, occupancy, time and price index. The price changings in real time will help you to determine the hotel room rate fluctuations.