How can you effectively negotiate with guests who want a lower price?

Negotiating with guests who want a lower price can be a challenging but rewarding skill for hospitality professionals. It can help you retain loyal customers, increase your revenue, and enhance your reputation. However, it can also be stressful, time-consuming, and risky if you don't handle it well. In this article, you will learn some tips and techniques to negotiate effectively with guests who want a lower price without compromising your quality or value.

1 Know your limits

Before you enter any negotiation, you need to know your limits. This means knowing your minimum acceptable price, your break-even point, and your maximum discount. You also need to know your value proposition, your competitive advantage, and your market conditions. These factors will help you determine how much room you have to negotiate and what benefits you can offer to your guests. You should also have a clear goal for the negotiation, such as increasing occupancy, boosting revenue, or building loyalty.

Add your perspective

Doddy Pribadi, S.Kom., M.Par., CHA.

Seasoned General Manager | Lodging and Hospitality Industry I Certified Hotel Administrator - AHLEI | Certified Hotel Expert - BNSP | Master Degree in Tourism - Trisakti Institute of Tourism
Report contribution
Transparently communicate any limitations in terms of pricing adjustments. This could include peak seasons, high demand periods, or fixed costs that cannot be modified.

Like
Amanda Baker

Passionate about hospitality and everything sales !
Report contribution
Never under sell you're property or service. I've walked away from negotiations sometimes on the basis that the clients budget was never going to meet the rates my property offered and deserved. It's about having the confidence to say 'unfortunately we can't help this time' However we are here should you're budget options increase or you're looking for a more exclusive experience '

Like
Dr. Abe Korn

Meeting Planner/Travel Manager/Conference & Event Organizer/University Lecturer & Professor/Speaker/Brand Ambassador/Patented Inventor
Report contribution
I try to explain to clients the services that we offer. Once they understand this, they are more open to negotiations with regards to pricing and other factors.

Like

2 Listen to your guests

One of the most important skills in negotiation is listening. You need to listen to your guests' needs, wants, and concerns. You need to understand their motivations, expectations, and objections. You need to empathize with their situation and show them that you care. By listening to your guests, you can identify their pain points, their value drivers, and their bargaining power. You can also find out what alternatives they have and how satisfied they are with them. Listening to your guests will help you tailor your offer and your communication to their preferences and interests.

Add your perspective

3 Offer value, not price

The key to successful negotiation is to offer value, not price. This means focusing on the benefits, features, and experiences that your guests will get from staying with you, rather than the amount of money they will pay. You can highlight your unique selling points, your quality standards, and your customer service. You can also create value-added packages, bundles, or incentives that enhance your offer and make it more attractive. For example, you can offer free breakfast, late check-out, or complimentary upgrades. By offering value, not price, you can justify your rates and avoid competing on price alone.

Add your perspective

Doddy Pribadi, S.Kom., M.Par., CHA.

Seasoned General Manager | Lodging and Hospitality Industry I Certified Hotel Administrator - AHLEI | Certified Hotel Expert - BNSP | Master Degree in Tourism - Trisakti Institute of Tourism
Report contribution
Emphasize the value they receive for the price. Point out unique amenities, services, or special offers that justify the current pricing.

Like

4 Be flexible, but firm

Another essential skill in negotiation is to be flexible, but firm. This means being willing to make concessions, but only if they are reasonable and reciprocal. You should never agree to a lower price without getting something in return, such as a longer stay, a larger booking, or a positive review. You should also never compromise your quality, safety, or reputation for a lower price. You should be prepared to walk away from a deal that is not profitable or sustainable for you. By being flexible, but firm, you can show your guests that you respect them and yourself.

Add your perspective

Doddy Pribadi, S.Kom., M.Par., CHA.

Seasoned General Manager | Lodging and Hospitality Industry I Certified Hotel Administrator - AHLEI | Certified Hotel Expert - BNSP | Master Degree in Tourism - Trisakti Institute of Tourism
Report contribution
Listen to their concerns and feedback. Acknowledge their perspective and show that you value their satisfaction. Remember, the goal is to find a solution that benefits both parties. While being firm on certain policies, showing flexibility and a willingness to accommodate reasonable requests can contribute to positive guest experiences and loyalty.

Like

5 Use positive language

The way you communicate with your guests can make a big difference in the outcome of the negotiation. You should use positive language that builds rapport, trust, and confidence. You should avoid words that imply conflict, rejection, or pressure, such as "no", "can't", or "have to". Instead, you should use words that imply cooperation, agreement, or possibility, such as "yes", "can", or "let's". You should also use open-ended questions, active listening, and feedback to engage your guests and understand their perspective. By using positive language, you can create a win-win situation for both parties.

Add your perspective

Amanda Baker

Passionate about hospitality and everything sales !
Report contribution
I would always give examples of what worked for previous clients, helps you come across as listening to you're current client, shows empathy and commitment to helping them make it work for their event.

Like

6 Follow up and deliver

The final step in the negotiation process is to follow up and deliver. You need to confirm the details of the agreement, such as the price, the duration, the amenities, and the payment method. You need to send a written confirmation, such as an email, a contract, or an invoice, to your guests and ask them to acknowledge it. You also need to deliver on your promises and exceed your guests' expectations. You need to provide them with a memorable and enjoyable stay that matches or surpasses the value you offered. By following up and delivering, you can ensure your guests' satisfaction and loyalty.

Add your perspective

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

Add your perspective

Doddy Pribadi, S.Kom., M.Par., CHA.

Seasoned General Manager | Lodging and Hospitality Industry I Certified Hotel Administrator - AHLEI | Certified Hotel Expert - BNSP | Master Degree in Tourism - Trisakti Institute of Tourism
Report contribution
Loyalty Programs Mention any loyalty programs or discounts available, encouraging repeat business and building a positive relationship. Bundle Services: Consider bundling services to create perceived value. Offering a package deal that includes accommodation, meals, or other amenities at a slightly discounted rate might be appealing.

Like

How can you effectively negotiate with guests who want a lower price?

1

2

3

4

5

6

7

1 Know your limits

2 Listen to your guests

3 Offer value, not price

4 Be flexible, but firm

5 Use positive language

6 Follow up and deliver

7 Here’s what else to consider

Hospitality

Rate this article

Thanks for your feedback

More articles on Hospitality

More relevant reading