The price of small hotels cannot be active as big hotels because they don’t have much data about room booking and a huge room inventory. To elevate competitive advantages, small hotels can apply these strategies:
Similarity strategy: the price is similar to the competitors and surroundings. This typical strategy is easy to apply, especially for the new hotel.
Odd price strategy: the price like $29.9/night always brings a low price feeling than $30. However, hotels can set up a more comfortable digit like $29 or $29.3. Customers can have the same feeling of a cheap price but it not too-sale as $29.9.
Surrounding strategy: setting up the lowest price for the basic room, and a slightly higher price than competitor’s basic room to other types of your hotel’s rooms. This helps attract 2 types of guests when they compare your price to the competitors.
Penetration strategy: setting up the lowest price as you can to attract the crowd. Customers always like a cheap price. Therefore, if you run this strategy, you better spread it to as many people as you can to win the crowd effect. However, this strategy can only apply in a short time to raise your awareness.