Hotel Pricing Strategy
SECTRETUM PRINCIPE
Standard room rack rate:
€450
15 Hotel Rooms
decrease Mid > Low
sensitivity analysis
increase Mid > High
Average Room Rate
20%
0%
20%
365
80 days in the LOW SEASON
153 days in the MID SEASON
132 days in the HIGH SEASON
nº rooms
Bungalows
Secretum Príncipe
Secretum Príncipe
Secretum Príncipe
4
Jungle Bungalows
€360
€450
€540
5
Iconic Bungalows
€440
€550
€660
1
Family Bungalow
€480
€600
€720
4
Beach Bungalows
€480
€600
€720
1
Secretum Bungalow
€960
€1,200
€1,440
Average Rack rate season
€307
€383
€460
Yearly Rack rate
€394
T.O 20
T.O 15
Online 10
T.O 20
T.O 15
Online 10
T.O 20
T.O 15
Online 10
LOW
Discount
LOW
Discount
LOW
Discount
MID
Discount
MID
Discount
MID
Discount
HIGH
Discount
HIGH
Discount
HIGH
Discount
Jungle Bungalow
€288
20%
€306
15%
€324
10%
€360
20%
€383
15%
€405
10%
€432
20%
€459
15%
€486
10%
Iconic Bungalow
€352
20%
€374
15%
€396
10%
€440
20%
€468
15%
€495
10%
€528
20%
€561
15%
€594
10%
Family Bungalow
€384
20%
€408
15%
€432
10%
€480
20%
€510
15%
€540
10%
€576
20%
€612
15%
€648
10%
Beach Bungalow
€384
20%
€408
15%
€432
10%
€480
20%
€510
15%
€540
10%
€576
20%
€612
15%
€648
10%
Secretum Bungalow
€768
20%
€816
15%
€864
10%
€960
20%
€1,020
15%
€1,080
10%
€1,152
20%
€1,224
15%
€1,296
10%
ARR
€373
€397
€420
€467
€496
€525
€560
€595
€630
Pricing of 5* African Lodges ranges from 350€ to 800€ per room per night but with some upscale product which exceed significantly this pricing range.
The pricing strategy of Secretum Príncipe has been carefully planned so that “high end” customer will be familiar to this price / product relationship whilst being significantly lower, compared to mature products in this premium & luxury market segment.
However, and especially compared to direct local competition, such as Praia Sundy, we believe that there is margin to increase this pricing strategy, which will considerably improve the financial performance of the operation.
Secretum will have an ARR (Average Room Rate) of 503€ and it takes into consideration the seasonality on Príncipe Island as well as different distribution channels, such as TO, TA and Online.
The pricing strategy of Secretum Príncipe has been carefully planned so that “high end” customer will be familiar to this price / product relationship whilst being significantly lower, compared to mature products in this premium & luxury market segment.
However, and especially compared to direct local competition, such as Praia Sundy, we believe that there is margin to increase this pricing strategy, which will considerably improve the financial performance of the operation.
Secretum will have an ARR (Average Room Rate) of 503€ and it takes into consideration the seasonality on Príncipe Island as well as different distribution channels, such as TO, TA and Online.
Average Room Rate
LOW
MID
HIGH
YEAR
Jungle Bungalow
€311
€389
€482
€406
Iconic Bungalow
€381
€476
€589
€496
family Bungalow
€439
€549
€787
€611
Beach Bungalow
€391
€489
€499
€471
Secretum Bungalow
€782
€978
€997
€942
Av. Room Rate Per Season
€396
€495
€577
€503
Distribution Channels
LOW
MID
HIGH
Rack rate
5%
5%
20%
T.O 20%
20%
20%
15%
T.A 15%
40%
40%
25%
Online
35%
35%
40%
Total
100%
100%
100%