Tariff is the rate or charges offered to the guest by the hotel for the use of different facilities & services, during their stay. Commonly, tariff is a charge of room rates and other facilities. The term Tariff means the rate applied to the room of a Hotel. Tariff or room charges may include meal or breakfast depending upon the plan as per the guest choices. Prices of hotel services are incorporated in a card known as the ‘tariff card’.
Tariff card is the card containing the rates or price charged by a hotel for accommodation. Tariff card may include meals depending upon the types of plan the hotel offers to the guests. Prices of meals and other hotel services are also printed in the hotel tariff card. It is a published room rate. Hotel room rate fixation is a difficult task. The room rates are both qualifable & quantifable. Quantifiable aspect is that they can be measured to meet certain criteria and qualifiable aspect is that large amount of discretion is allowed to implement the rates and time factor. The combination of all the rates offered at a Hotel is called as “Rate Structure”.
Basis Of Charging Room Rates:
The sale of rooms contributes more than 50% of total revenue generated in the hotel. rooms are charged on the following basis:
Category of customer coming to your hotel. The social status and financial status that is paying capacity should be kept in mind.
Standards Of Services:
Standard of services that Hotel provide determines the room tariff.
The 24 hours basis:
In twenty-four hours basis the room is charged for the stay of 24 hours. If a guest arrives at 9 am today, the room charges will cover until 9 an tomorrow. No concession will be given if the guest leaves few hours earlier. His/her hotel day begins at 9 am every subsequent day. There is not any fixed time for check-in and check-out. 2nd day will be start to count after 9.00am next day.
The amount of publicity done by the hotel to promote and highlights special Services.
The 12:00 Noon:
A particular time of a day is fixed, mostly 12:00 noon as a check-in and check-out time for all the guests, hotel day begins at this time. This method is advantageous that a room can be sold twice in a same day. For example, Mr. A arrives at 12:00 noon and checks out early. After few hours, Mr. Y arrives and is provided the same room, he is also charged for whole day.
Locality where the hotel is situated weather posh area with all other facilities like airport railway station bus stand shopping malls the Hotel area.
The Nightly Basis:
Here, the charge is fixed, according to the nights spent in the hotel. If a guest stays from 10 am until 6 am the next day, the guest in charged for one night or a day.
The amenities provided by the hotel to the guest. Fight sample for example Conference Hall, Banquet, Swimming Pool etc.
On the basis of competitor’s rate:
Some hotels fix the room tariff on the basis of what their competitors in the neighborhood are charging. In this method they don’t consider the features and facilities of its own organisation.
The rooms opening to better view would cost more than normal room. The location of room is also considered while fixation of room rate.
Check In & Check Out Basis:
It is the most common way of fixation of tariff. The hotel fixes a specific time usually 12 noon as checkout time and which means the guest charging cycle begin at 12 noon and finishes at 12 noon at the next day. Staying in the hotel after 12 noon, next days charge may be levied.