Front Office, 2nd Edition

Chapter 11

Tariffs

Introduction

So far, we have said little about the way in which a hotel decides how much to charge for its accommodation. This is clearly something which affects its marketing policy and is likely to play an important role in the negotiating process we outlined at the end of the last chapter.

Tariff construction is not likely to concern the majority of front office staff very closely. However, it IS a matter for the front office manager, and you ought to have some understanding of the principles.

There are two fundamental methods of approaching the problem:

1 Cost-based pricing. In these systems, the tariff is designed to cover the basic costs of operation at a given level of service, plus a given rate of return.

2 Market-based ...