TAUZIA Hotel Management has dropped its dynamic pricing policy in favour of a fixed rate system for its budget chain Pop! Hotels.
Rates at Pop! Hotels are classified according to time of the week – weekday or weekend – and time of the year. However, rates will be fixed throughout the week in some areas including Jakarta.
Marc Steinmeyer, president director of Tauzia Hotel Management, said the change from dynamic pricing, which can fluctuate at any time according to occupancy and season, to fixed rates, was in the interests of ensuring consistency in product and services.
“Customers who want to book a room today do not need to worry that price may change next month or the following month,” he explained.
Speaking on the sidelines of the opening of Pop! Hotel Tebet, Jakarta recently, he said the dynamic rate system applied by airlines and hotels today do not guarantee that travellers would get the best rate by booking long before date of travel or stay.
“Customers will be disappointed if they buy an air ticket long before their travelling dates and later find cheaper, last-minute offers,” said Steinmeyer. “On the other hand, if they wait till the last minute to book, there may not be such an offer, the price becomes higher or there are no more seats available. Travellers face uncertainty. We want to change this.”
Steinmeyer shared that the fixed rate system would be applied to Pop! Hotels and the impact evaluated before Tauzia decides whether to implement it at the company’s other brands.
Tauzia now operates seven hotels under the Pop! brand, with 26 more under construction and due to open progressively through to 2015.
Irene Janti, brand director for Pop! Hotels, said the rates at Pop! Hotels this year fell below 400,000 rupiah (US$35.40), and prices for 2014 had not been confirmed.
