Flexible hotel rates, the perfect balance between freedom for the guest and strategy for the hotel.

The flexible hotel rates is one of the most relevant strategies in price management and cancellation policies within the hotel industry. This booking method is designed to offer guests a higher level of security and flexibility, allowing them to modify or cancel their reservation with little or no penalty, always within the deadlines stipulated by the hotel.

From a strategic point of view, flexible rates are not just another option for travellers; they are a crucial tool for attracting specific market segments, such as business travellers, families with loose itineraries or premium customers who prioritise peace of mind over price. However, these rates represent a challenge for hotels, as they involve managing the risk of last-minute cancellations while maximising occupancy and profitability.

flexible hotel rate
LEAN Hotel System allows you to create direct bookings taking advantage of all the rate options obtained through the mapping with the Channel Manager.

Main features of a flexible tariff

  1. Cancellation free of charge or with minimum penaltyThis is the attribute most valued by customers, as it eliminates the stress associated with unexpected changes in travel plans.
  2. Defined deadlines for modificationsEach hotel sets its own time limits for changes and cancellations, allowing guests to plan with greater confidence.
  3. Higher price than other tariffsThis tariff is positioned as a premium product, which compensates for the risk assumed by the hotel.
  4. Adaptation to customer behaviourIdeal for indecisive travellers or those who value flexibility as part of their experience.
  5. Strategic use in low seasonsA way to attract customers during off-peak periods by ensuring that rooms are available to customers who can pay more for flexibility.

Differences between flexible fare and non-refundable fare

Cancellation policy:

  • Flexible tariff: Allows cancellation or modification without major penalties.
  • Non-refundable rateNo cancellations or refunds, reducing the financial risk for the hotel.

Price:

  • The flexible rate has a higher price due to the risk assumed by the hotel.
  • The non-refundable fare is generally cheaper, designed for customers looking to make savings.

Flexibility:

  • The flexible fare adapts to changes in itineraries.
  • The non-refundable fare is rigid and suitable for definite travel plans.

Target customer segment:

  • Flexible fares appeal to premium, corporate and family travellers.
  • Non-refundable rates are preferred by young travellers, backpackers and price-sensitive customers.

Operational impact:

  • Flexible tariffs require active occupancy management.
  • Non-refundable fares are more predictable and easier to administer.

Advantages of choosing a flexible tariff

Flexibility in changes and cancellations

For guests, the ability to adjust their bookings without penalty represents a significant added value. This is particularly important on business trips, where schedules often change unexpectedly, or in family tourism, where unforeseen events can arise.

Security and peace of mind for the traveller

In a post-pandemic market, travellers prioritise security and the ability to adjust their bookings according to external circumstances, such as changes in government policies or personal situations.

Adaptability to unforeseen travel plans

The flexible fare offers a solution to travellers facing uncertainty, ensuring that they will not lose their investment even if they need to modify their stay.

Considerations when booking a flexible fare

Possible additional costs compared to other tariffs

While the price of these rates may be higher, many guests find that the value of the flexibility outweighs the difference in cost. Hotels should clearly communicate this added value.

Hotel-specific policies

Each establishment defines its own rules for flexible tariffs. This includes deadlines, penalties and exceptions. Transparency in policies is essential to avoid misunderstandings and build trust with the customer.

Deadlines for making changes without penalty

Hotels usually allow changes or cancellations up to 24 or 48 hours prior to arrival. These restrictions help to minimise last-minute cancellations and optimise occupancy.

How to identify and book a flexible fare

Indicators on booking platforms

Hotels and OTAs (online travel agencies) highlight flexible rates with clear labels such as "free change" or "free cancellation". This makes it easier for travellers to find the option that best suits their needs.

Key questions to ask the hotel before booking

By contacting the hotel directly, guests can inquire about time limits, possible change fees and whether there are specific restrictions in the flexible rate policy.

Importance of reading the terms and conditions in detail

This section is often overlooked by customers. However, a thorough understanding of the terms and conditions avoids misunderstandings and enhances customer satisfaction.

Flexible tariff strategies with LEAN Hotel System

Automation and advanced tariff management

At LEAN Hotel SystemWe understand that flexible tariffs require dynamic management. The connection to a Channel Manager ensures that rates are synchronised across all platforms, avoiding discrepancies and ensuring a seamless customer experience. In addition, the PMS includes the ability to set up payment-related automations, facilitating the full implementation of the pricing strategy.

Integration with payment gateways

Automations must be complemented by an efficient payment system. For this reason, LEAN integrates with various payment gateways, allowing deposits, cancellations and modifications to be managed in an agile manner. This integration minimises errors and improves the experience for both customers and the hotel.

LEAN Hotel System includes a specific module to set up payment automations through an integrated payment gateway.

Conclusion: The value of the flexible tariff in a competitive market

Implementing flexible rates is more than a trend; it is a strategic necessity in the modern hotel industry. Guests are looking for confidence, security and adaptable options, and hotels must respond with solutions that balance these needs with business profitability.

LEAN Hotel System focuses on automation, analytics and synchronisation ensuring that flexible tariffs are a competitive advantage rather than an operational challenge.

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