2. ROLE AND FEATURES OF FORMATION OF PRICE POLICY OF HOTELS IN MODERN ECONOMIC CONDITIONS

Today, each hotel company has the goal of ensuring a sufficient level of profitability from its core activities, which can be achieved not only by reducing the cost of providing hotel services, but also by setting optimal prices for their services. It is on the level of established prices that the financial security of hotels, their ability to gain market leadership, which in general affects all aspects of the hotel business, largely depends. Pricing policy is one of the most important elements in the overall strategy of enterprises. In modern conditions, the management of hotels pays little attention to the development and implementation of pricing policy, which is manifested in the haphazard or complete absence of it, except for setting prices for their services at the market level. Some interest in the development of pricing policy can be observed only in crisis situations, or during the introduction of new types of hotel services. Thus, there is a situation where prices for hotel services do not correspond to real economic conditions in Russian Federation, which requires the development of an effective concept of pricing, which will be based on a careful consideration of the factors influencing the formation of pricing policy, as well as on modern techniques determining the price.

It should be noted that the development problems and features of the pricing policy in hotel business highlighted in the works of many domestic scientists and specialists in pricing. However, scientific and methodological measures aimed at increasing the efficiency of price policy in the context of market transformations remain insufficiently considered.

The pricing policy of the enterprise covers the concept of pricing for hotel services, and the specifics of their application, taking into account the range of services, categories of consumers, specifics of supply and demand, and is carried out within the framework of the general development strategy of the enterprise. It should be remembered that the price policy is formed taking into account the needs of consumers, the desired sales volumes, and the competitive environment. It is the price that affects the relationship between hotel business and the client. After all, by changing the price of its services, the hotel has the opportunity to attract more customers. Thus, the price should be such that will satisfy the needs of consumers, on the one hand, and, on the other, help to improve the financial security of the enterprise, as well as to solve other problems.

Determining the price of hotel services is a very important and complex procedure for every enterprise. "According to a survey of executives (with a sample of 57 from the US and 129 from Europe), pricing on a five-point scale was estimated at 4.3 points."

To develop an effective pricing policy, the management is faced with the task of ensuring the implementation of its following sequential stages:

Acceptance of pricing goals;

Research on pricing factors;

Choosing a method for calculating the price;

Determination of the means of pricing policy;

Making a decision on setting the final price for services.

The pricing policy of enterprises can be aimed at achieving such goals as:

Increasing the profitability of the company;

Consolidation of their positions in a certain market segment, or penetration into new market segments;

Promotion of new types of services;

Ensuring the survival of the enterprise in crisis conditions.

These goals emphasize the strategic importance of establishing an optimal price level and exclude their calculation without a thorough analysis of pricing factors. After all, the market price for hotel services depends on the influence of a large number of circumstances, which can be external or internal in relation to the enterprise. The main ones are:

Supply and demand.

Demand can be defined as the desire and ability of the consumer to use hotel services at a specific time and place. The demand is almost always unstable, and fluctuates under the influence of many factors, among which are the quality of the services offered, the seasons of the year, the clients' ability to pay, the economic situation and others. Thus, it is the demand that plays a key role in the formation of prices for each type of hotel services.

When determining the market price, a rather important role is assigned to the proposal, which is defined as the volume of services and which hotels can and wish to offer to their customers at a certain time and place.

In the free market, when determining the volume of services offered, there is a tendency to establish a balance between supply and demand. However, the state of equilibrium is not stable due to the influence on supply and demand of a significant number of factors. That is why price competition temporarily balances the contradictions between supply and demand.

Price competition.

Price competition is a type of competition involving changes in prices for goods and services. Enterprises, under the influence of many factors, by raising or lowering prices for their services, subject to changes in the level of demand for hotel services. The main condition for successful price competition is to reduce costs and improve the quality of services offered. The mechanism of action of price competition can be described as follows. A separate hotel, in order to survive in a competitive environment or to gain a leading position in the market, sets prices for its services below market prices.

Some enterprises - competitors, not being able to reduce prices, lose their positions in the market and leave it, other enterprises find opportunities to reduce unproductive costs and gradually come out of the crisis, expecting a rise in prices.

The cost of hotel services.

The prime cost reflects the current expenses of hotel enterprises for the production of a specific type of service and the cost of its implementation in cash. According to the Accounting Standards, the cost price includes: “production cost, unallocated fixed overhead costs and excess production costs”. In turn, the production cost of services should include: "direct material costs, direct labor costs, other direct costs, variable overhead costs and fixed distributed overhead costs." All listed costs must be accurately calculated.

It should be noted that in order to ensure the effective functioning of enterprises, it is necessary to pay special attention to precisely reducing their costs, primarily through the introduction of modern technologies... At the same time, it is necessary to take into account the constant increase in prices for utilities and energy resources, because it is these factors that impede the reduction of the cost of hotel services.

Since the pricing policy of each enterprise depends on many circumstances, the following methods of calculating prices for hotel services can be proposed:

Costly method;

Method of calculating the price based on the rate of return on capital;

Demand-oriented pricing method;

Price calculation method based on the current price level.

The method of calculating the price of a service based on costs has become widespread in business practice and is based on dividing costs into variable and fixed. After calculating the amount of expenses, an increase is added to it depending on the desired level of profit or the characteristics of a particular type of service.

This method is used quite often due to the following main advantages:

The ability to cover costs and make a profit;

When this method is used by all enterprises in the industry, the prices for their services will be almost the same.

The disadvantages of the method include:

The elasticity of demand for the service is not taken into account;

Does not provide for the need to look for opportunities to reduce their costs and improve the quality of services.

The ROC method can be used by hospitality businesses with a wide range of services, most of which are new to the market. This method is based on the fact that the desired rate of return on invested capital is added to the total cost per unit of service.

The demand-driven pricing method is quite complex and not very common, because when determining the final price, the focus is not on the company's own costs, but on the value attitudes of consumers towards the services offered.

This method consists of sequentially determining what is of value to the target customer and pricing the customer's most important values.

The use of this method can be effective if the company has real information about the needs of its potential consumers, a fairly wide range of services, and can also draw the attention of customers to the unique characteristics of their services.

The method of calculating the price, based on the level of current prices, is that entrepreneurs set prices for their services slightly higher or lower than those of competitors, focusing not on their own expenses, but on the market situation, the pricing policy of competing enterprises, as well as their reaction to price changes.

The maximum use of all the proposed methods will allow enterprises to pursue an effective pricing policy.

Since the final prices for hotel services are set under the influence of demand, they must, in turn, adjust it, accelerate or slow down the implementation of their services. Thus, an increase in demand for hotel services encourages hotels to apply higher prices, and thus contributes to an increase in revenues. Money from sales, and when demand falls, enterprises are forced to apply minimum prices or various discounts in order to stimulate demand.

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MINISTRY OF EDUCATION AND SCIENCE OF THE KYRGYZ REPUBLIC

ACADEMY OF TOURISM

SERVICE DEPARTMENT

"APPROVED FOR PROTECTION"

Head Department of Service

E.S. Ostrovskaya

2013 g.
COURSE WORK
on the topic of:
"Pricing policy, features of pricing in the hotel business"

Completed by: Team of the 3-year special seminar

Leader Zh.G. Lebedinskaya

Bishkek - 2013

INTRODUCTION

Historically, prices have been set by buyers and sellers through negotiations with each other. Sellers typically asked for a price higher than what they expected to receive, and buyers below what they expected to pay. After bargaining, they finally agreed on a mutually acceptable price.
Setting a single price for all buyers is a relatively new idea. It received distribution only with the emergence at the end of the 19th century. large retailers.
Historically, price has always been a major determinant of a buyer's choice. This is still true in poor countries among poor groups of the population in relation to products such as consumer goods. However, in recent decades, non-price factors, such as sales promotion, organizing the distribution of goods and services to customers, have become relatively stronger in consumer choice.
One of the most important elements of hotel marketing is pricing policy.
Pricing policy in the hotel industry is everywhere based on the classification of rooms into different types of rooms according to the interior arrangement and design, depending on which a specific differentiated pricing structure is created. In relation to the first indicator, the types of rooms are determined according to the current demand, and to the second - by obtaining the best price in a certain period of time. Variants of prices depending on demand in a specific period of time should be calculated in advance, however, they, of course, need to take into account the average market prices for certain types of rooms and the purchasing power of customers in the places where they come from. The following criteria can become the main indicators for creating a price list for individual numbers and a "price list" with the level of their possible deviation from their average planned value:
- income from rooms in general;
- the ability to achieve full occupancy of all rooms;
- the quality of rooms and services that complement the arrangement of hotel places.
Then the income from the rooms should be calculated, in my opinion, according to the following formula:
At the same time, the differentiation of prices for individual rooms can be such that the price of the best rooms can cover the costs of these rooms, part of the costs of the worst rooms and bring significant profit, and the rates of the worst rooms can be determined in the amount of the cost price or even lower, but cover some general form the costs of this hotel and attract additional social clients, i.e. not every hotel room needs to be made profitable, and in order to fully load the hotel and solve at least some of its problems, it is possible to widely combine the goal of achieving a certain level of profit with the horizontal differentiation of prices for certain types of rooms in a given particular hotel. Naturally, during the period of maximum demand (for example, in summer), prices should increase, and during minimum demand, they should decrease. To do this, you need to plan the system in advance. bonus discounts based on the analysis of the life cycle of a product, which must be monitored for at least 2-3 years.
Consequently, prices for hotel services should not only differentiate, but also reflect the parametric relationship between occupancy and the discount rate, which determines the quality of accommodation and guest services, which together form the income of a hotel enterprise.
At the same time, it should be noted that any prices in the hotel business do not allow to quickly recoup those costs that are invested in the construction of new hotels. A paradox arises: on the one hand, hotel furnishings are a rapidly aging commodity, and on the other, hotel enterprises are a long-term payback business, which repels many investors from it and affects the specifics of the hotel life cycle.
The need for hotel services as a market product has a life cycle of an “ideal” product, going from antiquity to the present and the future. And the need for a certain arrangement of rooms and the hotel itself in the form of a certain design, architecture, filling with furniture, equipment, household achievements of scientific and technological progress is subject to fashion, the development of progress in society and other rapidly changing factors with a short life cycle.
The first regularity dictates the price as the existence of a way of income to recoup costs and generate income.
The second is high prices for acquiring reserves of funds and resources for refurbishing hotels in the near future. High prices reduce the interest of mass consumers in a particular hotel and reduce its market share, while low prices prevent the creation of a risk fund. In addition, properly constructed pricing requires an optimal balance between demand and the purchasing power of the population, which is most important for those territories where this ability is low. Thus, it is almost always very difficult to find the optimal ratio between rational prices for a hotel product and the interests of investors, which affects the state of the hotel industry in any country and requires attention and assistance from the government in solving investment problems of the hotel industry in any state.
The amendment is introduced to some extent by inflation, which, if it develops at a high rate, makes hotel buildings attractive for saving funds of legal entities and individuals. It is this pattern that affects the development of the rental market for a short time, the purchase of housing with the aim of further renting it out, etc. However, this goal should also have less impact on the pricing processes than the purchasing power of customers. At the same time, the hotels of the Kyrgyz Republic do not have to rely on a large number of wealthy clients from abroad, and private housing with low prices has become a serious competitive force opposing the development of the hotel industry in the Kyrgyz Republic, which will be impossible to cope with with any new restrictive law and other prohibitive measures from the Government. , since the experience of similar prohibitive measures in other countries shows that this problem cannot be solved by such government measures. The only way to solve it is only that differentiated and well-thought-out pricing, which was mentioned above.
In my work, I would like to consider the pricing policy and the specifics of pricing in the tourism business, various strategies for setting prices for a hotel product, since tourism is one of the largest and most dynamic sectors of the economy. The high rates of its development, large volumes of foreign exchange earnings actively influence various sectors of the economy, which contributes to the formation of its own tourism industry. These days, one cannot fail to notice the enormous impact that the tourism industry has on world economy... This determines the relevance of the research topic.
The purpose of the course work is to generalize the theoretical provisions of pricing and study the methods of pricing in the tourism, hotel business.
To achieve this goal, the following tasks were set:
· Explore the theoretical foundations of pricing and pricing;
· Study the methods of pricing;
· Research the methods of pricing in the tourism business;
· Analyze how prices for services in the hotel business are formed;
· Consider these methods on a specific example.
The subject of this research is theoretical and practical issues of pricing in the hotel business and pricing in general.
The object of the research is the hotel complex of the President's Residence.
The theoretical and methodological basis of the study is the scientific works of domestic and foreign scientists on pricing and tourism business.

CHAPTER 1. PRICE AS A MARKETING TOOL FOR ANY COMPANY

Price is an important marketing tool that is closely related to other elements and provides the seller with real income. The pricing process solves two main tasks: maximizing profit from the planned sales volume and long-term customer satisfaction. The best combination of an internal company development strategy and a long-term marketing strategy, taking into account the market situation, helps to achieve these seemingly contradictory goals.

1.1. How companies set prices for their products

The pricing policy of any company is to establish the initial price of the product and decide from what point and how it should change. Pricing occurs when a company introduces a new product or brand to the market. It changes either on its own initiative, or in response to the pricing policy of competitors.
To establish the optimal starting price, you need to do the following: First, define your goal, i.e. what the manufacturer wants to achieve by supplying to the market New Product: increasing market share, maximizing profits, etc. All other pricing decisions will be made depending on the purpose. Second, the company must identify the target customer for the new product. This will affect the choice of the price segment that this product will occupy: cheap, medium or expensive. Then it is important to analyze the factors that influence pricing: the costs of the company, the level of competition, the type of market (perfect competition, monopolistic competition, oligopoly, monopoly) in which the firm operates, price elasticity, etc. Taking all the factors into account, a general strategy and pricing method for a new product or brand is selected.
Young companies most often use a high or low price strategy.
With a skimming strategy, many firms that create novelties based on large inventions or R&D results, when the costs of mastering and introducing a new product on the market (advertising and other means of promoting goods to the buyer) are too high for competitors, when the raw materials needed to launch a new product are materials and components are available in limited quantities or when it is rather difficult to sell new goods (in the event that reseller warehouses are overcrowded, market conditions are sluggish and wholesale and retail companies are reluctant to enter into new deals for the purchase of goods), they first set maximum prices in order to skim the cream off different market segments. At the same time, firms strive to maximize profits as long as new market will not become an object of competition. The skimming method takes precedence under the following conditions:
1) there is a high level of demand from a large number of buyers;
2) production costs are not so high as to negate the firm's profits.
By using a market entry strategy, the firm, on the other hand, sets a relatively low price for a new product in order to attract more buyers and gain a larger market share. An example of such a strategy is the purchase of a large enterprise, the establishment of the lowest possible price for the product, the conquest of a larger market share, the reduction of production costs and, as they decrease, the continuation of a gradual price reduction. From a purely financial point of view, the position of a firm using this approach can be characterized by both an increase in the mass of profit and income on invested capital, and a significant decrease in profitability. However, when applying low prices, the firm's management must determine the possible economic consequences of this as accurately as possible. But in any case, the risk is very high, since competitors can quickly respond to low prices and also significantly reduce the prices of their products. When analyzing the market and drawing up a sales forecast for a company entering the market with a new product at a price below the average, it is also necessary to take into account that the amount of price reduction for its product should be quite significant (30-50%), even with a significantly higher quality goods, and when there are many consumers on the market who are willing to pay an increased price for goods of higher quality or higher technical level. In this case, it does not matter whether we are talking about the entry of a company into a new sales market for it or the introduction of a new product into a fairly well-known market. In any case, the policy of the company should be approximately the same - at the expense of significantly lower prices to penetrate the market, accustom the buyer to the brand of his company or show him the advantages of his product and provide the company with a sufficient market share. Only after the product has received recognition in the market and its advertising among buyers has begun, the company can begin to revise its production program and the price of the product in the direction of their growth.

Pricing methods

In economic practice, there are several general methods of pricing for any type of business. Pricing methods can be divided into 3 types: cost plus premium, value and competitive pricing.
In the "cost plus markup" method, the costs of production and sale of a product are calculated and the amount or percentage of profit that you wanted to receive by selling the product is added to them.
The cost-plus-margin approach has advantages and disadvantages. Let's first dwell on the cons. A calculation method that does not take into account the level of demand for a product, competitors' prices and the value of the product for the consumer will not allow the company to establish an optimal and competitive price. Formation of prices in this way is effective only if the established price provides the expected sales volume. But the disadvantages are minimal when other pricing methods are used concurrently, which will be discussed later.
Now about the advantages of the cost-plus-premium method. First, calculating costs is much easier than estimating demand. Second, if businesses in the same industry use this method, their prices are likely to be similar. Thus, price competition is minimized, which is beneficial for companies.
In value-based pricing, the price is set based on the consumer's perception of the value of the product. This method assumes that the manufacturer cannot first create the product and then calculate the price. It, like other elements of the marketing mix, is determined before the new product program is formed. The starting point for value pricing is the analysis of customer needs.
The third way is competitive pricing. Using this method, the company must consider how many competitors there are in the market that produce similar products and at what prices they are selling them. The price of your product or brand can be set at the level of competitors, higher or lower. As in the case of using the value method, the most important condition here is to conduct preliminary marketing research using a number of techniques, for example, measuring the price sensitivity of consumers. This technique allows you to determine the range of acceptable prices for a new product. The potential consumer is asked to name the price at which this purchase will be too expensive, successful and suspiciously cheap for him. Then, with the help of specially developed computer programs, charts are built and points corresponding to the optimal prices are found. There is also a methodology that allows you to compare a new product with the existing counterparts of competitors. The respondent is offered several brands of a product at a specific price and asked to make a choice. Then the price of the selected product rises and the person is again asked to make the choice. The result is a certain ratio between brands or the optimal price for a new product.
In practice, a single method is rarely used in setting prices. Many firms prefer an integrated approach, i.e. consistent price calculation, first focusing on costs, then on consumers, and finally on competitors. As a result, the optimal price is set from the point of view of both the company (maximizing profit) and buyers (they are willing to pay a specified price for this product, based on its values).

Price adaptation and change

The company does not set a single price for its product, but creates a whole pricing system, which involves the adaptation of prices by geographic principle, a system of discounts and credits, as well as within the marketing complex. The geographic approach is that prices for different regions are assigned taking into account the difference in transportation costs. A system of discounts and credits is used to reward or incentivize consumers to pay bills quickly, order high volumes, and out-of-season purchases. There are cash discounts, volume discounts, seasonal discounts, etc.
It is very important for price adaptation that pricing has never been separate from other marketing tools. Prices for goods and services affect the market perception of their properties, the effectiveness of advertising and the interest of wholesalers and retailers in them. On the other hand, the product itself, and its advertising, and its distribution affect the success of the pricing policy. Its success depends on how coordinated the product, its price, promotion and distribution are. For example, the main requirement for coordinating pricing and promotion is that the ad matches the price of the product. Advertising of an expensive product should reinforce the image of quality, and an advertisement for a cheap one should inspire the idea of ​​the merits of the product, taking into account its price. Changes in prices can be carried out both at the initiative of the company's management and in response to a change in the business environment. The main reason for the rise in prices is the systematic increase in production costs. It leads to lower profit margins and forces the company to regularly raise prices. Often, manufacturers, anticipating further inflation, raise prices to a level that covers the growth of costs. The second reason is excess demand. The firm initiates a reduction in prices for its products, for example, in cases of underutilization of production capacities or a reduction in market share - in order to increase
Price policy is also carried out by establishing various price lists and various reference books. Here are some examples of prices.
Retail prices.
Wholesale prices.
Contract prices.
When setting contract prices, the following transaction circumstances are usually taken into account:

the total volume of the transaction (the number of tourists and the total amount of proceeds);
the quantitative composition of the planned groups. With an increase in the number of group members, the cost of servicing one person may decrease;
sequence of arrival of tourist groups in a chain to the hotel;
set of services in the package. With an increase in this set, prices for services that make up the tour package may decrease;
the order of payment for the service. Subject to payment of a deposit, a deposit or an early advance payment to a travel agency - the buyer can apply for discounts.

Various discounts can be used along with differentiated prices, for example:

discounts on prices for services for children under 12 years old;
discounts on prices for additional excursions;
discounts for certain categories of consumers.

Markups to current prices can also be widely used.

1.2. Prices for services in the hotel business

The hospitality business uses all the common pricing methods as any business. These are factors such as:

the cost of the service;
the price level of competitors;
the ratio of supply and demand.

When developing a hotel's pricing policy, it is necessary to be guided by the following principles.
Principle 1. The price should correspond to the category of the hotel.
1. It is necessary to understand that whatever the costs of building and equipping a hotel, a two-star hotel cannot be sold for the price of a four-star one.
2. At the same time, if you got the hotel even for free, the low prices, corresponding to the hotels of more economical class, will scare away the guests.
Principle 2. Prices depend on the season.
When setting tariffs, it is necessary to take into account seasonal factor- the presence of "low" and "high" seasons. There can be as many seasons as you like. In Sochi, for example, in some hotels, there are up to 15 seasons.
Principle 3. Prices should be different for different categories of customers.
Hotel rates should be subdivided into "open" and "closed". Open rates are rates offered to any customer upon contacting the hotel and indicated at the reception. Closed tariffs are tariffs used when working with travel agencies, organizations, regular customers. Open rates should be set in such a way that the hotel has the opportunity (without significant damage to profitability) to set closed rates lower than open rates.
When determining tariffs, it is necessary to take into account the degree of favorableness of this tariff. The favorableness of the tariff policy of a particular service is determined by the ratio of the current tariff with the most or least advantageous tariffs for a similar service on the market.
t r - t min
Tr =,
t max - t min

Where t r is the current tariff;
t max, t min - the most and least favorable rates for consumers at competing hotels.

In other words, the closer t r is to zero, the more favorable the hotel rate. But this coefficient gives an approximate estimate, which does not take into account the similarity of the services offered and the comfort provided in competing hotels. Therefore, it is important to identify as accurately as possible the hotels that are most similar to your hotel. The price should take into account the cost of production of the service, its quality and competition and should not go beyond the purchasing power of the consumer.
On the other hand, changes in tariffs should be within the economic feasibility, the boundaries of consumer confidence and maximum attractiveness.
The increase in price is limited by the level of consumer demand, the lower price limit, of course, is determined by the cost of the service and the required profitability. But there is one more indicator that, in fact, props up the lower price level even more rigidly than the cost price - this is the level of consumer confidence. Clients are often wary of low prices, rightly believing that if in all 3-star hotels the price for a room is higher than that of the offered 3-star hotel, then the offered hotel either has a worse quality of service, or it is not a 3-star hotel.
No less important factors influencing the choice of pricing policy will be the following:

hotel and room categories;
equipment of rooms;
hotel location;
additional infrastructure;
competitors' prices.

It should be borne in mind that hotels of the same category may have different room prices due to the additional services included in the price.

1.3 Hotel pricing

Law and price
The main activity of hotels is the provision of hotel services.
The price of a hotel space depends on the category of the hotel, room category, quality of service, discounts or surcharges for certain services.
When providing hotel services, prices should be determined the same for all consumers, including legal entities.
Changes in prices are possible only if the conditions for the provision of services differ from the conditions stipulated by the public contract. However, all this does not deprive the hotel of the opportunity to apply discounts set by itself. But these discounts, subject to the conditions of their provision, should be provided to all consumers.
The hotel is obliged to promptly provide the consumer with the necessary and reliable information about the services, ensuring the possibility of their correct choice, which, in particular, should indicate:
- prices of rooms (places in the room);
- a list of services included in the price of the room (space in the room);
- the list and prices of additional services provided for a fee;
- information about the form and procedure for payment for services;
- the maximum period of stay in the hotel, if it is established by the contractor;
- a list of categories of persons entitled to benefits, as well as a list of benefits provided in the provision of services in accordance with laws and other regulatory legal acts.
However, providing this information to consumers, the hotel may face a problem when the client does not want to purchase a wider range of services.
A feature of hotel services is that, as a rule, they do not need intermediaries in the implementation and in the creation or assistance of special sales structures.
In addition, a feature of the provision of hotel services is the absence of work-in-progress.
These features of the production and sale of hotel services have a certain impact on the formation of the price of hotel services. As practice shows, the following factors influence the price level:
- the cost of the service;
- the level of prices for similar services from competitors;
-the ratio of supply and demand;
- the level of staff salaries, etc.
When forming a pricing policy, it is necessary to determine what costs the hotel should have in order to make a profit at existing market prices.
When forming the price of a hotel service, one should also take into account that there may be different types of buyers:
- economical buyers who pay special attention to the price, quality and list of services provided,
- personalized buyers, for whom the image of the hotel, the quality of service and the attitude of the staff are of great importance, and the price of the services provided is less important,
-apathetic buyers who focus on comfortable living and quality service, regardless of the price of the service.
One of the components of the price is, for example, the cost of a hotel room.
The price of the room (space in the room), as well as the form of payment, is set by the contractor, that is, the hotel management.
The hotel may include a different set of services in the cost of living. This set is determined by the requirements established by the standards for the corresponding category of hotels. The same services for hotels of one category are additional, and for another - mandatory, which are included in the cost of living.
The hotel independently determines the list of services that are included in the room price.
It should be noted that there is a list of services that the contractor is obliged to provide to the consumer free of charge, regardless of the hotel category:
- calling an ambulance;
-use of a medical first aid kit;
-delivery to the number of correspondence upon receipt;
-wake-up at a certain time;
-providing boiling water, needles, threads, one set of dishes and cutlery.
The rules stipulate that the performer has the right to establish either hourly or daily payment for accommodation.
Payment for hotel accommodation is charged in accordance with a single checkout time - from 12 noon of the current day, local time.
The price of hotel services also depends on the comfort of the living conditions provided to the consumer.
As a rule, for certain conditions of accommodation (single, double, triple) in a certain category of rooms, the hotel administration sets the base prices calculated per day of stay (without discounts).
Hotels may have special rates that include discounts over base rates. Special prices are fixed in separate price lists. These prices generally apply to the following categories:
-groups of foreign citizens of more than ten people;
-tourist firms;
- regular guests;
- part-time accommodation, etc.
A significant factor influencing the hotel's pricing policy is the applied system of discounts.
The discount can be provided to the customer either in the form of a reduction in the regular sales price, or in the form of transferring a certain number of them “free of charge”.
For tax purposes, the price of goods, works or services specified by the parties to the transaction is assumed. Until proven otherwise, the price is assumed to be in line with market prices. The duty to adjust the transaction price for tax purposes, as well as to prove the legality and correctness of such an adjustment is imposed by the Tax Code on the tax authorities.
If the price deviates by more than 20 percent upward or downward from the level of prices applied by the taxpayer for identical (similar) goods (works, services) within a short period of time, the tax authorities have the right to check the correctness of the application of prices for transactions.
When exercising tax control, tax authorities should take into account the discounts provided to audited taxpayers, taking into account the size of the discounts, the basis for their granting, etc. Discounts applied by competitors should also be taken into account when assessing the comparability of the terms of the relevant transactions, if they are regular discounts.
Therefore, when discounts are granted in excess of 20% of the sales price, in order to avoid tax risks, a justification for granting the discount must be prepared.
From the analysis of the provisions of the Tax Code, it follows that a discount is recognized as a decrease in the sales price, and not the provision of a certain number of goods (services) "free of charge" if the client observes the conditions for granting a discount. Thus, if the invoice indicates that a certain amount of goods (services) is transferred at zero price, there is a risk that such an operation will be recognized as a gratuitous transfer and not a discount. Therefore, to avoid tax risks, the discount should be formalized as a reduction in the sales price.
For tax purposes, the purpose of the discounts provided is important. Discounts reduce the sales price only if they are due to:
seasonal and other fluctuations in consumer demand for goods (works, services);
loss of quality or other consumer properties by goods;
expiration (approaching the expiration date) of the shelf life or sale of goods;
marketing policy, including when promoting new products to the markets that have no analogues, as well as when promoting goods (works, services) to new markets;
the implementation of prototypes and samples of goods in order to familiarize consumers with them.
It should be borne in mind that the specified list of reasons for providing discounts is approximate.
Establishing a pricing policy is an important process, and you need to approach it responsibly. The importance of this process lies not only in the fact that your income will directly depend on the amount of payment.
Price is not just the amount of money to be paid per unit of good or service. In tourism, the cost of hotel services often determines its quality. And this must be remembered!
When developing a hotel's pricing policy, the following factors should be taken into account.
1. The price must correspond to the category of the hotel.
2. Seasonal price fluctuations. The peculiarity of the tourism business is seasonality. That is why tariffs should reflect fluctuations in demand for services at different times. During the high season, prices should be as high as possible, and during the low, minimum. This will help to ensure the occupancy of the room stock and use the hotel resources in the most efficient way.
3.Different prices for different groups of clients. Hotel rates are "open", that is, those that are placed at the reception and are available to any client who contacts the hotel. And "closed". These are tariffs designed specifically for working with travel agencies, organizations and regular customers.
4. It is important to track the price changes of competitors in the same niche as you. A consumer, choosing between hotels offering the same range of services, will naturally choose a hotel with more attractive prices. Therefore, it is important to track market price changes and respond to these changes in time.
When developing a pricing strategy, tourism and hospitality businesses use a number of pricing methods.
The simplest and most common method is considered to be cost-based pricing. This method is based on the calculation of production costs, service costs, overhead costs, desired profit. The price is set by adding certain margins to the cost of the tourist product that characterize costs, taxes and profit margins.
Pricing policy is strongly influenced by competitors and their possible reaction to price declines in the market. Consequently, the following pricing method can be distinguished - pricing with a focus on the level of competition. Pricing is based on the use of information about current and potential competitors of the hotel company.
The next pricing method is demand-driven pricing. This method is based on studying the desires of consumers and setting prices that are acceptable for the target market.
Several pricing strategies are used to successfully promote a new product.
Pricing strategy is the choice of the possible dynamics of changes in the initial price of a product in market conditions that best suits the purpose of the enterprise.
There are several options for pricing strategies that I would like to talk about in more detail.
The strategy of skimming (high prices) involves the initial sale of a new tourist product at high prices. Subsequently, the company goes to reduce prices.
The market penetration strategy is based on deliberately low prices in order to influence as many consumers as possible. With the growth of sales and the development of the market, the price rises slightly.
Prestige pricing strategies are deliberately high prices designed to attract consumers who are more concerned with product quality, uniqueness or status than price.
The “follow the leader” strategy assumes the ratio of the prices of the firm for its own products with the prices of the leader in the given market.
The “sliding falling price” strategy is a logical continuation of the “skimming” strategy. Price slides consistently along the demand curve.
The “price preference” strategy is a continuation of the market penetration price strategy. The essence is to achieve an advantage in relation to competitors in terms of costs (then the price is set lower than the prices of competitors) or in quality (then the price is set higher than the prices of competitors).
Market segment prices strategy. Each decision on pricing should take into account the expectations and needs of consumers, as well as the desires and ability to pay a certain amount for travel services.
The strategy of "price manipulation" is one of the means of increasing the value of the service in the eyes of the client. At the same time, a slightly increased price for a product is perceived by consumers as an indicator of the value of the service itself.

The strategies outlined reflect the overall approach of the tourism and hospitality industry to the pricing of tourism and hospitality products and services. But businesses in the tourism and hospitality industries are more likely to use flexible pricing strategies. In most cases, firms do not use one price, but a set of prices for different market situations. Pricing is considered flexible when the same item is sold to different customers at different prices.
Also, when developing and implementing a pricing strategy, it is necessary to take into account the psychological characteristics of customers and use psychological methods of pricing.
The most common hotel pricing methods for mini-hotels are the following:
a method focused on competition, when the price is set after analyzing the competitive situation among similar accommodation facilities with the same set of services;
a method focused on psychology, when an overpriced price is set in excess of the market average, if the hotel provides an exclusive service;
intuitive method - the price in this case is determined intuitively, and depends on the experience of the head making the decision on pricing.

1.4 International experience in attracting clients in the hospitality industry

The essence of the client-oriented marketing management concept is reflected in the very concept of "hospitality industry", which today is more common in the specialized literature compared to the concept of "tourism industry".
As part of the ongoing marketing revolution, most of the successful "hospitality industry" firms in the development of policy (strategy) to attract customers, mainly use two approaches.
The first approach is based on the so-called price discrimination, the second approach is based on the client's in-kind reward system. Combined strategies are also used.
Price discrimination is both market segmentation and price differentiation based not on differences in production and sales costs, but on the price elasticity of individual demand.
Special pricing strategies (discounts-markups) are used in order to attract additional customers who are more price sensitive. At the same time, prices for potential customers do not change. Strategies like these should not be confused with antitrust violations; they are a legal and fairly beneficial pricing system for consumers.
For example, hotels in the central parts of the city, as a rule, cater to businessmen and are not very busy on weekends. Therefore, on weekends and holidays, they set low prices for tourists, as a result of which additional demand is created, and customers are attracted who otherwise would hardly have chosen a hotel in the center.
Price manipulation is also widely used in other sectors of the hospitality industry. Firms are developing discriminatory pricing techniques to smooth out demand, predict occupancy rates, and maximize revenue. However, for the successful implementation of a discriminatory pricing strategy, certain conditions must be met. First, the base price must be high enough, otherwise the use of a price discrimination system can lead to lower income.
The most widespread system of discounts from the base price, which is also used by us, the largest hotels in Kazakhstan, Russia, which includes discounted prices for corporate or commercial clients, for travel agencies, for government agencies, for family stays, for group stays , for a range of services, free service for advertising purposes, etc. As a result of price manipulation, the average actual price of a room becomes much lower than the base one. There is a decrease in the average profit per hotel room, respectively, a decrease in profit in general. Raising the base price is much more difficult. On the one hand, the base rate is set in accordance with the category assigned to the hotel. On the other hand, an increase in the base price can lead to a decrease in demand.
Second, the use of a wide range of discounts requires flexible management, analysis and monitoring for each alternative.
The cost of implementing price discrimination strategies should not exceed the income received, in this regard, the segment should be large enough for the discount system to make sense. At the same time, the system of discriminatory pricing should not contradict the interests of positioning one's own goods and services. There should be no confusion in the minds of customers due to at various levels hotel classes.
Third, it is necessary not only to distinguish and divide customers according to their sensitivity to price, but also so that customers of one segment, paying a lower price, could resell the service to others at a higher price (this applies to intermediary firms).
Due to the limited ability to manipulate prices since the early 1980s in developed countries, an approach based on the idea of ​​rewarding a loyal customer has been adopted. The purpose of such programs is to stimulate the consumer to make purchases of goods and services in a particular firm. Loyalty programs are based on an optional free follow-up service accumulation system. For example, many airlines that are part of the travel industry offer passengers who have traveled 35,000 miles a free round-trip ticket to any destination in North America. A customer who has flown 50 thousand miles can count on a free trip to Hawaii or Europe.
Compared to discriminatory pricing, the loyalty in-kind reward system has a number of advantages. So, the client not only spends money on a certain set of services, but at the same time “earns” points, which are transferred to a special account of the participant of the corresponding reward program. For example, in US hotels, a customer can earn extra points for every dollar spent on additional services or bill payments: room rates, restaurant, telephone, pay TV, laundry, car rental, etc.
A purely psychologically intangible service acquires an element of tangibility. For every dollar spent, the client receives a service in the future, for example, a free breakfast or a free breakfast snack, use of a local telephone, a hotel wellness center, additional equipment for working in a hotel room (such as a printer, fax, copy machine, etc.), express -registration, etc.
The guest is usually given a plastic card or certificate. The accumulated points make it possible for the client to feel like the owner of something material, which will bring certain benefits in the future.
The loyalty reward program, or as it is also called the "frequent guest" program, helps to compile a database and thereby analyze what the guest needs and what he expects from the product or service. Through the database, the company has the opportunity to constantly and directly deal with the consumer, in order to maximize the degree of satisfaction of his needs. As a result, the guest receives an improved product or service that meets his specific needs. This moment is all the more necessary due to the fact that in recent years consumers have become more and more demanding and fastidious. They look for goods and services, paying attention to their features, seek completeness of information, strive to expand the consumption of environmentally friendly products.
Experts even began to talk about the professionalism of consumers.
The enterprise can inform regular customers any new beginnings, as well as price changes. The analysis of dialogue relationships with customers enables the company to anticipate (get ahead) of the moments desired by customers.
Accordingly, the quality of service rises.
At the same time, the "frequent guest" program assumes a constant expansion of the range of services provided, which prompts managers to search for partners for cooperation. Relationships are established with firms, both in their own segment, and with firms operating in other market segments, as well as in other countries and on other continents. For example: hotels of various brands participate in the “Marriott” hotel chain customer incentive program: Marriott Resorts & Suites (5 - star hotels for business travelers, individual and group tourists); FairfieldInn (budget hotels, motels); Vacation Club International Conference Centers (congress, educational and cultural centers); Residence Inn (hotels for long-term stays), etc. Airlines (British Airlines, etc.) and a company that leases Hertz cars also participate in this program.
Wide cooperation with companies in the hospitality industry enables Marriott to diversify its services. A regular client has a wide choice: spend a weekend in any hotel participating in the program, rent a car, use the services of an airline, take a cruise or use many other services. In 1997 alone, the participants in this program brought the company 33% of the total profit. Marriott employees are not permitted to participate in incentive programs.
Often times, hospitality companies run several loyalty programs (combined strategies) at once. As part of the already mentioned program, the "Marriott" corporation also participates in a joint program with 14 airlines from different countries (American Airlines, Air Canada, British Airways, etc.). This program focuses on the interest of the airlines' clientele. The guest earns miles for staying at any of the hotels brand Marriott Hotels, Resorts & Suites.
To reward the most fastidious customers, the "Marriott" corporation implements a special "Club Marquis" program, becoming a member of the club, the guest will have to participate in one of the programs. For example, depending on the number of nights spent in hotels of the “Marriott Hotels, Resorts & Suites” brand, incl. 12 months, the guest receives a specific card: up to 50 nights - a "gold" card, from 50 to 74 nights - a "black" card, over 75 nights - a "platinum" card. The "Club Marquis" card gives a 10% discount on souvenirs in the hotel stores, and also provides a loan: for a "gold" card - $ 200, for a "black" and "platinum" card - $ 500. The "Marriott" corporation also carries out various programs - rewarding group (corporate) clients. These are organizers and participants of conferences, banquets, meetings. There are also Additional services, which can be used including one year. Among them: guaranteed room availability 48 hours before arrival, free refreshments upon arrival, best room rate for standard room rate (subject to hotel occupancy), special gift, daily international press delivery, keychain with the logo “Marriott”, admission to the “Concierge” -bar ", etc.
The “tourism industry” or “hospitality industry” remains an extremely promising industry, and its importance is increasing every day. Significant changes are taking place in our domestic “hospitality industry”. Many domestic hospitality businesses need funds to survive and expand: income and profits. And the main source of income is the client. A modern hotel should be able to attract customers, achieve their loyalty and in every possible way stimulate the costs of purchasing hotel services. It is already clear that the entire hotel business in the future will increasingly focus on attracting repeat customers and stimulate additional costs on their part. As part of their marketing policy, our domestic enterprises must learn to inform the client about the level and quality of services, and must not ignore emerging markets, information and other new technologies, new approaches to management and marketing, marketing research. In addition, internal marketing needs to be revised, because human resource management is a very important element in the tourism and hospitality business. It is often difficult to separate the material part of the product from its spiritual component. The hotel staff, organizing the reception of guests and providing them with services through mediation, becomes an essential component of these services themselves. Work internal marketing is built in such a way that employees at all levels of the hotel's organizational structure are aware that their practical activities and the atmosphere of service they create shape the consciousness of the client. The main goal of internal marketing is to help employees provide the right customer satisfaction service. To gain a competitive edge in the marketplace, “hospitality” businesses must continually improve the way they deliver their services, seek out reserves for productivity gains, and improve the quality and culture of service.
The study and application of marketing concepts can help analyze the changes taking place in the domestic and global hospitality markets, acquire the skills and knowledge necessary to assess the current market situation, analyze the clientele base, thorough and comprehensive knowledge of the components of the hotel product and develop strategies aimed at ensuring effective marketing result.
Competition is now taking place on a global scale. Therefore, you should use the world experience in implementing a variety of programs aimed not only at attracting customers, but also at shaping their preferences. The application of the above marketing strategies for attracting customers, of course, will not simplify the task, but it can provide effective assistance in solving many problems that are currently facing our enterprises.
What a tourist appreciates in a hotel

Trip Advisor has conducted an interesting opinion poll aimed at finding out which hotel characteristics are the most significant for tourists. It turns out that most of all tourists (30% of respondents) pay attention to the location of the hotel, its prestige and address.
With a small margin, there is such an intimate component as a comfortable bed and a bed. After all, many people suffer from insomnia and cannot fall asleep in someone else's space, so the comfort created in the bedroom of the room cannot replace even the most stylish interior.
24% of respondents pay attention to the characteristics of the hotel staff. The hotel guest wants to always feel himself in the center of attention, without feeling the intrusive service. And of course: "The client is always right!"
If we talk about the choice of the "star rating" of the hotel, then almost half of the respondents prefer to stay in hotels the highest category, about 30% of travelers find the most economical and convenient option. A fairly high percentage of respondents (20%) stay in boutique hotels. And as experts note, the number of the latter will grow every year.
Tourists from America do prefer hotels of one favorite hotel chain. The average cost, which tourists do not mind paying for a night spent in a comfortable hotel, ranges from $ 100 to $ 200.

CHAPTER 2. ANALYSIS OF PRICE FORMATION IN THE HOTEL COMPLEX OF THE PRESIDENT OF THE KR

2.1. General characteristics of the enterprise State residence No. 1

State residence No. 1, Department of Presidential Affairs of the Kyrgyz Republic.
State residence No. 1 is located in the gorge of the Ala-Archa river in the village of Chon-Aryk. Today, State Residence No. 1 is a leader in the provision of services for various events: official and business meetings, negotiations, round tables, seminars, symposia, buffets and banquets.
State Residence No. 1 has comfortable hotel complexes and conference rooms with modern technical equipment.
Beautiful nature and mountain air, combined with high professional service, will create all conditions for fruitful work and comfortable rest. The hotel complex Residences provide our guests with an absolute guarantee of safety and peace.
State residence No. 1 is a world of comfort and coziness.

CONGRESS HALL
It is a modern reception house with large and small conference rooms, a press center, a meeting room and a banquet hall. It was here that the meetings of the heads of state of the SCO, CIS and EurAsEC countries took place. The congress hall has modern technical equipment and offers an individual approach to each client.

Congress hall
Large conference hall
The hall with a capacity of 150 people is convenient for holding round tables, forums, negotiations and conferences. Equipped with air conditioning system, comfortable furniture, audio equipment, LCD-screen, projector. Simultaneous translation and audio recording services are provided.
Congress hall
Small conference room
This hall is perfect for negotiations in a narrow circle, which allows you to hold events of any format with maximum convenience for up to 40 people.

Congress hall
Press Center
The press center, with a capacity of up to 250 people, is intended for briefings and press conferences. The main function of the center is to provide information support for any events.

Congress hall
Banqueting hall
The hall with a capacity of up to 150 people is perfect for celebrations, buffets and banquets.
Highly professional service and exquisite cuisine complement the hospitality atmosphere.

Congress hall
Hall of Aksakals
The interior of the Hall of Aksakals is designed in the national style, contributing to the creation of a trusting atmosphere. It is a great place for meetings and receptions.

Hotel
The complex includes six guest houses and four hotels. Cozy, luxurious presidential-class apartments, deluxe and junior suites are equipped with elegant furniture, satellite TV and Wi-Fi.
A comfortable environment contributes to fruitful work and pleasant rest.

Guest houses
These are comfortable presidential-class houses equipped with satellite TV and Wi-Fi. You will be pleased to rest and relax in an atmosphere of luxury and comfort.

Guest complexes "Ala-Archa"
The guest complex "Ala-Archa" includes the hotels "Burana", "Arstanbap", "Ak - Buura" and "Issyk-Kul" with suites and junior suites. You can also use the services of conference rooms and meeting rooms. Surrounded by blue spruce trees, guest complexes "Ala-Archa" will give you a pleasant rest and the opportunity to walk along the shady alleys.

Hotel "Burana"
Offers:

2 suites and 7 junior suites;
Conference hall "Marble", with a capacity of up to 50 people;
Meeting room "Elite" for up to 15 people.

Hotel "Arstanbap"
Offers:

2 deluxe rooms and 4 junior suites;
Meeting room for up to 50 people - "Red Hall";
Meeting room for up to 8 people - "White Hall".

Hotel "Ak-Buura"
Offers:

1 deluxe suite and 3 junior suites;
Banquet hall "Antiques" for up to 50 people;
Hall for negotiations "Tulip", with a capacity of up to 8 people.

Hotel "Issyk-Kul"
Offers:

2 suites and 10 junior suites;
Large banquet hall for up to 300 people - "Golden Hall";
Conference room for up to 40 people - "Small Hall".

Yurt
A symbol of Kyrgyz hospitality, the yurt is ideal for meeting foreign guests and delegations. The time spent in it gives an unforgettable feeling of national color and comfort.
Billiard room
Guests who want to relax and unwind after a busy day and at the same time enjoy the gambling and spectacular game, can visit the billiard room.

Tennis court
For lovers of tennis, there is the opportunity to visit the well-equipped tennis court.

The current organizational structure of the hotel complex RESIDENCE No. 1 is shown in Fig.2.1.

Figure 2.1. Organizational structure of the hotel complex

Table 1.1

The structure of the hotel complex of personnel in the context of positions

2.2. Comparative characteristics of Bishkek hotels by prices

Pricing issues for Bishkek hotels: main aspects and patterns.
A rather interesting situation has developed in Bishkek: the number of hotels is constantly increasing, but the demand for their services strongly depends on the seasonality.
Currently, a clearly formed trend is observed in Bishkek: the number of hotel facilities is constantly increasing, and in various segments from guest houses to elite luxury hotels. But at the same time, seasonality affects demand so sharply that the level of prices for accommodation in guest rooms fluctuates, sometimes making the difference between the lowest and highest prices for the same offer up to several times.
In this regard, for many clients the ability to understand what such fluctuations still depend on and what the final cost can be expected is a fundamental point when choosing a hotel. Bishkek hotels form prices based on the occupancy of their room stock. Those hotels that are located near famous landmarks or in the southern part of the city in an ecologically clean area especially take advantage of the opportunity to raise prices. After all, tourists who come to get acquainted with the history and culture of Bishkek strive to stay in a hotel that is as convenient as possible in relation to famous museums and theaters.
Also, a popular hotel brand plays an important role in prices in Bishkek hotels. This is not surprising, since such a phenomenon is always widespread both among consumer goods and among housing services. Therefore, if the hotel is managed by a world famous hotel chain, plus 20-30% of its objective value are guaranteed.
Given the rise in wages, taxes and utility bills, hotel owners tend to methodically and gradually increase the cost of living in rooms within inflation. However, in especially low occupancy months (December-January) hotel prices drop significantly. Still, the flow of tourists during this period is markedly reduced. Therefore, the influence of the seasonality of tourist activity for Bishkek is especially acute. Without considering a pricing policy based on seasonal fluctuations in demand, any hotel runs the risk of losing potential customers and failing to maintain a minimum level of occupancy to support its activities. That is why it is so important to plan the seasonal price schedule in advance and inform about it in the public domain, so that everyone who is going to Bishkek could evaluate the price-quality ratio and choose the most optimal option for accommodation among the hotels.
In the process of studying the pricing in hotels in the city of Bishkek, an analysis of prices for services in several hotels in Bishkek was carried out and a comparative characteristic was made with the prices for services in the hotel complex of the Residence of the President of the Kyrgyz Republic.

Price list Residence Ala-Archa №1 "Burana" № Residence Price / day
1 Lux 2 15,000 sec.
2 Junior suite 4 8000 s.
3 Junior suite 3 5,000 s.

Price list Residence Ala-Archa №2 "Arstanbap" № Residence Cost / day
1 Lux 2 15,000 sec.
2 Junior suite 4 5,000 s.

Price list Residence Ala-Archa №3 "Ak-Buura" № Residence Price / day
1 Lux 1 10,000 s.
2 Junior suite 3 5000 s.

Price list Residence Ala-Archa No. 4 "Issyk-Kul" No. Residence Cost / day
1 Lux 2 15,000 sec.
2 Junior suite 10 5,000 s.

Price list Guest houses
Guest houses № Residence Price / day
1 Guest house No. 5 "Sary-Chelek" (2 suites, 2 semi-suites) 30,000 s.
2 Guest house No. 6 "Son-Kol" (2 suites, 2 semi-suites) 30,000 s.
3 Guest house No. 7 "Aigul-Too" (2 suites, 2 semi-suites) 30,000 s.
4 Guest house No. 8 "Sulaiman-Too" (2 suites, 2 semi-suites) 30,000 s.
5 Guest house No. 9 "Tien Shan" (2 suites, 2 semi-suites) 30,000 s.
6 Guest house No. 10 "Bakai-Ata" (2 suites, 2 semi-suites) 30,000 s.

Jannat Hotel, Bishkek
We will do our best to make our guests satisfied with the hotel's service! This is the motto that the staff of the Jannat hotel is guided by in their work. In accordance with international standards ideal conditions for a good rest have been created here. The rooms have comfortable furniture, individual climate control systems, satellite TV, international communications, wireless Internet, personal safe and minibar. The bathrooms are equipped with well-known brand toiletries and a hairdryer. The interior of the hotel is very interesting; it is an original synthesis of modern trends and traditional national elements. It uses magnificent felt and silk products made by Kyrgyz craftsmen. The hotel has a well-developed infrastructure. The entertainment complex of the hotel deserves special attention, where everyone can find a suitable way of spending time. You can plunge into the atmosphere of the dynamic nightlife of Bishkek and spend an evening in the casino or the luxurious restaurant of the hotel. And for supporters healthy way life is provided with a large swimming pool and sauna.
Breakfast included

etc.................

Room amenities
The formation of the selling price for hotel rooms depends on many factors: · From time criteria (season, high, medium, low seasons, weekend rate, duration of stay rate); · On the situation in competing markets (the hotel's market share); From the expected volume of turnover (group tourists, corporate clients, seminars, exhibitions); · From tourist demand (medical tours, wedding tours, family clients); From the region and location of the hotel (climate, location, transport accessibility and etc.); · On the terms of payment (prepayment, discounts); · On the quality of service expected by the client (superior room, additional services, etc.). All factors affecting the price of a hotel product are divided into both internal and external ones. In some cases, they restrict the freedom of the enterprise in setting prices, in others, they do not have a significant impact, and in the third, they significantly expand freedom. To a greater extent, these are factors external to the firm and not controlled by it: · political situation; · International environment; · The state of the economy; · Type of market; · State regulation of prices; · Consumers, their ability to pay; · Competitors; Costs, etc. First of all, the pricing policy of an enterprise depends on the type of market in which it operates, that is, on the market strategy that determines its behavior. In a purely competitive marketplace, there are many sellers and consumers. None of the producers in such a situation can have a decisive influence on the level of current market prices, they are controlled by the market. The market of monopolistic competition also has many consumers and sellers who do not deal at a single price, but in a wide range of prices, which is explained by the ability of sellers to offer a wide range of hotel services. It is very important here what position the company occupies: whether it is a leader or an outsider, that is, it controls the price or not. An oligopolistic market has a relatively small number of sellers who are sensitive to each other's pricing policies. It is difficult for a new manufacturer to penetrate here, it is difficult to overcome the competition of well-established manufacturers. In such an environment, price is controlled by a group of producers, which may include a given enterprise, but it may also take the place of an outsider. The pure monopoly market is represented by one manufacturer. The price is set depending on the objectives of the public or private monopoly. This market is based on a monopoly price controlled by the state. The hotel services market today does not have clearly defined features of one type or another. Therefore, the pricing policy should take into account the characteristic features of each of the listed markets. The freedom of the enterprise in setting prices is not limited by consumer demand, the market environment, but also by the state. The influence of the state on the freedom of pricing can be carried out in three ways. 1st way: setting the price level by: - the introduction of list prices (this applies to services, the prices of which are decisive for the formation of prices for other services - electricity, tariffs for housing and communal services); - "freezing" of free market prices (it is, as a rule, of a short-term nature and is carried out to restore price proportions and limit inflation); - fixing monopoly prices, if a monopolist or an enterprise occupying a dominant position in the market abuses this provision, that is, restricts freedom of competition. 2nd way: regulation of the market price by: - setting a limit level for individual services (the retail price should not exceed the level of the marginal price or should be equal to it); - regulation of the main parameters that determine the level of prices (amount of profit, discount, amount of indirect taxes); - setting the maximum level of a one-time increase in prices for a specific service in order to prevent an abrupt rise in prices; - strict control over the level of monopoly prices; - setting prices for services state enterprises that act on the service market also as subjects of entrepreneurial activity. 3rd way: establishing the rules of the game for the system of free (negotiable) prices. In this case, the state introduces a number of prohibitions that protect participants from unfair competition: - a ban on horizontal price fixing, that is, a ban on an agreement to maintain a certain price level; - a ban on price discrimination, that is, on the restriction of freedom of choice, the imposition of so-called tied contracts; - a ban on dumping, that is, the provision of a service at a price lower than the cost in order to eliminate a competitor; - a ban on unfair price advertising. Consumers have a significant impact on firms' decisions. The relationship between prices and the volume of services rendered at these prices is formed under the influence of the laws of supply and demand and price elasticity, as well as depending on the reaction of consumers of different market segments to the price. It is customary to distinguish between the following categories of consumers by their perception of prices and orientation in service: 1) consumers, when choosing a location, show great interest in prices and quality. They are greatly influenced by advertising that reveals additional characteristics regarding the available rooms and the list of services included in the room price. 2) consumers who are sensitive to the "image" of the service. The quality of service and the attitude of the staff towards them are very important for them; 3) consumers who constantly choose the same location, despite the large number of competitors; 4) consumers who give preference primarily to convenience and comfort, regardless of price. Competition is an important element affecting the price level. Depending on who controls prices, there are three competitive environment. An environment in which prices are controlled by the market is highly competitive as well as service similar. This is where it is important for an enterprise to set prices correctly. Overpriced prices will alienate consumers and work into the hands of competing firms, while underpriced prices will not provide conditions for business development. It is impossible to hide the pricing strategy from competitors; successful experience is quickly picked up by competitors. In this regard, marketing is faced with a difficult task: to see the prospects for the chosen price strategy and to prevent competition from escalating into price wars. The environment in which prices are controlled by the enterprise is characterized by limited competition, differences in services (for example, the degree of equipment). In these conditions, it is relatively easier for enterprises to function, earning high profits: their services are beyond competition. At both high and low prices for their services, firms find consumers, the choice of price depends only on the strategy and the target market. An environment where prices are controlled by the state is represented by transport, communications, utilities. Government organizations authorized to control prices set their level after a comprehensive study of information from all interested in this type of service. Internal factors: · Organizational and legal form of the enterprise, image; · The goals of the hotel business; · Management; · Market segments and areas of activity; · Features and characteristics of hotel products and services; · Professionalism of the staff; Financial and economic condition of the enterprise: · Quality of hotel services. The efficiency of the functioning of any hotel is closely related to the quality of the provision of hotel services. What is quality of service? Quality refers to the conformity of the services provided to the expected or established standards. Thus, standards, their real form and content are the criterion for the quality of service. The criterion for assessing the quality of the service received for the consumer is the degree of his satisfaction, that is, the correspondence between what was received and what was expected. The criterion for the degree of customer satisfaction is the desire to return again and advise your friends and acquaintances to do this. One of the main documents defining the relationship between the administration, hotel employees and the client are "Rules hotel service in the Republic of Belarus ", approved by the Resolution of the Council of Ministers of the Republic of Belarus dated 07.04.2006 No. 471. Paragraphs 22 and 23 of this decree reads: "22. The quality of the services provided must comply with the requirements of technical regulatory legal acts for these services. 23. The material and technical support of the hotel, the list and quality of services provided, the level of service must correspond to the category assigned to the hotel. " With regard to the quality of services, they include: l competence (the firm has the required skills and knowledge to provide a service); b reliability (stability of the firm's work); ь responsiveness (the system does not fail with unusual requests); l availability (ease of contact with employees of the company); l understanding (understanding the specific needs of clients); l communication (timely and intelligible informing of clients); ь trust (reputation of the company); b safety (protection from risk (physical and moral); l courtesy (politeness, attentiveness, friendliness); l tangibility (material attractiveness of premises and staff form). Providing high quality hotel services is an integral part of the constant attention of the hotel administration, regardless of the form of ownership. Achieving quality in the service sector is an important task, the solution of which ensures entrepreneurial success. Hospitality activities involve a high degree of contact and coordination between employees and guests. The most common actions in this sense are aimed at improving and monitoring the quality of hotel services (hot water temperature, number of towels, cooking conditions, etc.). However, the quality of hotel services is not only about solving the technical side of the matter. The efforts of the enterprises of the hotel industry have traditionally been aimed at attracting customers, at the maximum fulfillment of guests' wishes, and gaining trust. This can only guarantee their complete satisfaction. Therefore, the development strategy of the hotel company should also bear in mind and, moreover, place particular emphasis on improving relations and communication between customers and the hotel company. In our time, many directors of hotel enterprises have formed the opinion that high quality means high cost. This point of view is incorrect, since it ignores the potential of the client meeting with service as a self-reinforcing mechanism. Understanding customer value, quality, and value versus cost can increase profits by giving the hospitality business the opportunity to increase its price and sell more. Continuous quality improvement is not a cost, but a long-term investment based on ensuring customer loyalty by meeting their needs. This claim is based on research showing that the cost of acquiring a new customer is five times the cost of retaining an old customer by offering quality service. This research is based on the following factors: - the ability to retain customers allows you to reduce marketing costs and, accordingly, increases profitability; - a satisfied customer advertises free of charge by spreading verbal information favorable to the hotel. The quality of hotel services to a large extent depends on the qualifications and interest of human capital, on their creativity, ability to master new technologies, as well as on the use of new organizational processes and the forms of the material base used for customer service. The quality of services in the hospitality industry is a measure of how the level of service provided meets the expectations of the client. The following factors affect the quality service in a hotel enterprise. First of all, the state of the material and technical base, namely: convenient layout and high-quality finishing of the hotel premises, equipping its public premises and living rooms with comfortable furniture and equipment, full sets of high-quality linen, modern high-performance kitchen equipment, convenient elevator facilities, etc. The next factor is progressive service technology. It implies the order and methods of cleaning public premises and residential rooms; registration and settlement with clients; recipes for cooking food and drinks in restaurants and bars; forms of service in trading halls etc. High professionalism and competence of the service personnel, their ability and readiness to serve the guest clearly, quickly and culturally. The most important factor in modern hotel enterprises is the management of the quality of service, which provides for the development and implementation of quality standards, personnel training, control, adjustment, improvement of service in all areas of the hotel. Thus, the pricing policy of the hotel business is influenced by many factors, both internal factors (type of market, state, competitors, cost) and external factors (image of the company, its goals and directions, financial condition, professionalism of service personnel, etc.). The most important factor is the quality of hotel services. Quality is, first of all, a sense of customer satisfaction from service, and high-quality hotel service is a service that meets the needs of the guest. The level of quality, in turn, depends on the degree of coincidence of the client's ideas about the actual and desired service in the hotel. Price- monetary expression of the value of goods - products (products, works, services), i.e. the amount (amount) of money that the buyer pays for the product. For the buyer of the price he is ready to pay - this is a measure of the intensity of his need, i.e. the size of the satisfaction he is waiting for. For the sale of the price at which he is ready to sell - this is a measure of support plus the profit that he needs to receive. Formally (simplified) the price can be provided as a ratio indicating how much money you need to pay in order to get the correct ratio But the consumer is also interested in the cost of consumption, that is, the entire amount of costs associated with the purchase and consumption of goods or services. Since the service life of the same product may be different, the purchaser tends to purchase the product with the minimum unit cost. Specific cost of consumption = Cost of consumption / Lifetime of the product. In the life cycle of a product, there are five main phases. · The phase of introduction begins with the release of goods to the market. With the introduction of a product of high market value, the brand takes a monopolescent position on the market. Basically, the goods are purchased by buyers - "newcomers". To provide a new product "breakthrough", the ad is actively used. In parallel, through the creation of a sales network and the development of production capacities, prerequisites are created for the provision of new products of high-performance power. In the area of ​​prices for the goods of high consumer demand, there is a "policy of low prices" So, as in the phase of introducing the goods, the slowly growing yields counteract high costs in the sphere of production and development of the market, · In the phase of growth, which leads to the attainment of the maximum yield by means of a provision, for successful goods one observes a so-called "sales fast volume", xapy In this phase, new competitors are released on the market. The "newcomers" are added to the "newer" buyers. During this period, the highest profit is ensured. The original monopoly of the tovap is converted into an oligopoly. If, at the introduction phase, the company has carried out a policy of high prices, then the policy of cooking will now begin to be applied. Continue to actively use the ad. · In the phase of maturity, the extraction from the sale will continue to grow until it reaches the maximum. At the same time, its tempers decrease and by the end of the maturity phase they reach a zero mark. The company has to compete with numerous competitors that have already taken over the market. Chtoby obecpechit cppoc co ctopony vozpocshego kolichectva potpebiteley to kotopym ppicoediniloc "zapozdaloe bolshinctvo" and obecpechit ppodykty otlichie From tovapov-konkypentov, kompaniya ppibegaet to politike diffepentsiatsii ppodyktsii. The advertising policy is aimed at maintaining the existing preferences and creating new ones. · In the phase of saturation, the rejection decreases, and the rate of its growth is negative. The profit also continues to decrease and by the end of the period approaches zero. Many pioneers are transferring their activity to new markets. In the quality of the buyers, the goods will appear "overwhelming majority" and "remaining". The preference is gradually moving from the policy of cooking and differentiation to the competition of quality. · In the phase of the drop, the yield drops steadily, it is practically impossible to ensure the profitability of the product. The market is returning to the oligopoly form. Among the buyers there are "outgoing" ones. Advertising costs are gradually decreasing. At the same time, prices often increase due to the low cost-efficiency of demand, as well as to reduce losses. Before all commercial and many non-commercial organizations, there is a task of assigning a price for your goods or services. The process of setting (determining) prices that ensure the survival of the enterprise in market conditions, which includes the choice of a pricing method, the development of an enterprise pricing system, the choice of price market strategies and other aspects is called Pricing policy of the enterprise . The pricing policy of hotels should be structured in such a way that in seasons of increased demand for their services, they receive significant amounts of profit, and in seasons of low demand, they maintain or increase market segments. Seasonality in pricing, a mobile market environment that requires constant monitoring market offer and sales of this product (service). There are three main goals of pricing policy: · Ensuring survival is the main goal of a company operating in a highly competitive environment, when there are many manufacturers with similar products on the market. The important components of this pricing policy are the volume of sales (sales) and market share. Reduced prices are used to capture a larger market share and increase sales; · Profit maximization. Not only companies with a stable position in the market strive to maximize profits, but also companies that are not too confident in their future, trying to maximize the profitable market conditions for themselves. Under these conditions, the firm makes an assessment of demand and costs in relation to different price levels and stops at those prices that provide the maximum profit; · Retention of the market - consists in maintaining a firm's existing position in the market or favorable conditions for its activities. The pricing policy is influenced by: 1) Market factors - supply and demand, production costs, competitors' prices, etc. 2) Government regulation prices. There are direct and indirect ways of government influence on prices. Direct (administrative) methods are the establishment of a certain pricing procedure; indirect (economic) - aimed at changing market conditions, creating a certain position in the field of finance, currency and tax transactions, wages. 3) a change in the purchasing power of the hryvnia (excessive release of money into circulation reduces their purchasing power - they are depreciated); 4) foreign exchange rates. The following pricing policies are distinguished: The "skimming" policy, when a new product is introduced to the market at high prices, but due to its usefulness it is in high demand; Low price policy in relation to competitors' prices, which allows to penetrate the market, increase market share, and create barriers to entry for new competitors. When implementing a policy of low prices, it must be remembered that low prices are associated by many with low quality of goods. Therefore, some buyers can go to a competitor who sells a similar product at higher prices. In price competition, the financially stronger competitor wins, having the ability to keep low prices for a long time (for example, at the expense of other markets or goods). All other things being equal, the winner will be the one with the lower cost of goods. The task of the pricing policy of enterprises in the hospitality industry is associated with the development of strategies and tactics for pricing their goods and services, in particular, determining the initial market prices for new products and services. The optimization of the mechanism for the formation of market prices is carried out through the following stages of the development of a pricing policy: Determination of pricing goals; Analysis of factors affecting the pricing policy of the enterprise; Choosing a pricing strategy for certain types of tourist services; Determination of models for the formation of output market prices; Determination of methods of tactical regulation of market prices At the first stage, pricing goals are formed, which are determined by the overall strategy of the enterprise in the hospitality industry. The goals can be classified according to the following criteria: Ensuring the economic survival of the enterprise in a competitive market environment; Increasing market share by setting low prices; Conquering market leadership in terms of service quality; Maximum increase in current profit; In order to implement the selected pricing strategy, the company chooses one of the pricing methods: Average costs and average income; Providing targeted profit; Setting a price based on the perceived value of a hotel service; Setting prices at the level of current competitors' prices; Price setting based on "closed trades" After determining the initial market price, it is necessary to find out exactly how the market price should change, how the variant of the desired change affects the implementation of the company's goals Thus, the pricing policy of a hotel company is a reasonable prediction of a probable change in the output market price of the proposed product, it optimally corresponds to main goal enterprises on the market. Developing an independent pricing strategy and tactics for managing the price of a hotel product is a constantly reproducible process. It is not possible to select a specific policy once and implement it over a trivial period. The pricing policy must be constantly checked and adjusted to the situation that has developed in the market. First of all, the company must present its services to the market, choose the optimal price and quality. At the present stage, hotel enterprises use various strategic options. The definition of a pricing strategy depends on what service the price is being set for: a new one already offered on the market. If a product or service is at the stage of market introduction, the pricing strategy will be fundamentally different from the strategy for products or services that are at the stage of maturity or aging. The choice of one or another pricing strategy of an enterprise in the hospitality industry depends on a number of factors, the main of which are: the stage of the service life cycle, the characteristic features of the service and their difference from the quality parameters of other services, the state of development of competition in the market, characteristics of consumer demand and its price elasticity , own operating costs, the rate of return of the company and the average rate of return of competitors, the company's image in the market. The research stage of price factors is the most laborious. The soundness of strategic and tactical decisions on prices depends on how thoroughly the analysis is carried out. An effective pricing policy includes not only the establishment of the initial market price, but also payment methods, types of discounts, and price differentiation based on various criteria. For example, due to the fact that the hotel industry is characterized by significant fluctuations in demand, prices for services can change not only taking into account the season, but also the day of the week. Thus, an effective pricing policy should be associated with the company's long-term goals and the general direction of its development, in particular, with the formation of regular customers, ousting competitors, penetrating a new market, maximizing profits, etc. Experience shows that most often hotels combine several pricing strategies. The choice of optimal strategies is based on the forecast of marketing managers on the price elasticity of demand, price dynamics of competitors, the stage of the service life cycle, and the average volume of marginal income for similar services. Among the well-known pricing strategies, the following are used: the “skimming” strategy (high price strategy), the market penetration or market conquest strategy (low price strategy), the prestigious (high) price strategy, the strategy of targeting the “price leader” (mid-range prices), the strategy of differentiated (flexible) prices, the strategy of preferential (low) prices for certain categories of customers of the category of customers. ... Skimming strategy (high prices) provides for the start-up sale of a new service at a high price. This becomes possible only if there are no competitors, when the service is fundamentally new in this market. Using the "skimming the cream" strategy, hospitality businesses can enjoy their monopoly for a certain amount of time, but not for long. In the future, similar services appear on the market and enterprises are forced to reduce prices. In the homelands of drunken experience, the typical strategies of "skimming" and "penetrating the market" penetrating the market. Pricing skimming strategy on the international market hospitality services are atypical because it is difficult to invent services for which consumers are willing to pay high prices. In addition, competitors quickly become aware of such services, and the enterprise is forced to develop a new strategy that is more suitable for the new situation. Therefore, in the international experience, the “skimming” strategy is used more among the industries of the production sphere with the high costs of research and development of new commodity products. ... Market penetration strategy is based on the establishment of a low price level in order to attract a significant number of consumers. Low price in this case, it is a kind of payment for the introduction of a product (service) on the market. This strategy is being applied by new businesses and businesses looking to capture a larger market share. With the growth of sales volumes and the strengthening of the company's position in the market, the price gradually rises to the average level in the region, while maintaining the previous demand. The "market penetration" strategy is particularly appropriate in modern development services, the cost of providing which is gradually decreasing according to the "economies of scale" This effect reflects the empirical pattern of rnity: with the accumulation of experience and an increase in sales, the cost per unit of services decreases. The "market penetration" strategy can be used for wide distribution of hotel products in the domestic tourist market of Ukraine, but under such conditions. Ukraine, ale for such minds: The company's own costs should be low enough so that even at low tariffs, the company can receive the necessary profit; It is imperative that the situation on the market is such that competitors do not have time to respond to a price cut. If competitors join this “short game”, the risk of bankruptcy is especially high. ... Prestige price strategy provides for the establishment of an excessively high price focused on a separate category of consumers, the price for them is insignificant, for consumers, first of all, the quality of services, image, and the unique status of an enterprise on the market are important. For example, such a strategy is used in the best in the. Europe luxury rooms Together, the prestigious pricing strategy is effective only when there is little or no competition in the market, when measures such as patent protection, special prestige of the brand and brand are used. ... Price Leader Targeting Strategy provides for the development of the company's pricing policy based on the research of the market leader's pricing policy. However, this does not imply the establishment of prices for services in strict accordance with the level of prices of a good enterprise in the market, but only borrowing certain elements of its pricing policy. Price for new service or the product may deviate from the price of the leading enterprise, within the limits determined by the quality overweight of certain services. The less new services or goods differ from those offered on the market, the closer their price level will be to the established standards determined by the leader. Such an approach is outwardly very attractive for enterprises that do not want or do not have the opportunity to independently develop a pricing strategy. However, it is also dangerous, restraining the price initiative of the enterprise, this can cause serious miscalculations (for example, if the leader pursued a wrong policy for some time or used a distraction, etc.). In the international experience, pricing strategies are not used outright, in a complex, according to the specific situation on the market and the general development strategy of the enterprise. ... Differentiated (flexible) pricing strategy consists in setting prices in combination with all possible discounts and markups to the average price level for different markets and their segments. Prices are set according to demand and can be varied through the introduction of discounts and compensations. ... Preferential pricing strategy is focused on clients in which the company is interested, offering them services at preferential prices In general, the more specific, unique, high-quality and valuable hospitality services are, the more freedom businesses gain in setting prices. Clients are provided with a number of basic and additional services. But, both the pricing process itself and the pricing strategy of services cannot be considered in isolation, this is due to the fact that there is no demand for basic services without additional and related, and nav pakki. According to the main component of the price of a hotel product - the cost of service, in the development of the strategy and tactics of pricing of domestic hotel enterprises and in the international experience, certain features are highlighted. General economic instability and uncertainty of factors influencing the decision-making process make it necessary for the heads of domestic hotels to pay great attention in the setting of prices for services. As a rule, plans include temporary price lists, and a system of price discounts is approved, which mainly determines the difference in prices between the season and the off-season. A significant disadvantage is that the determination of prices in most domestic hotels is carried out not by the marketing departments, but by the accounting department and the planning and economic department. According to international experience in the hospitality business, it is the marketing managers who must control the tariff policy, they must interact with other internal departments responsible for setting prices. The planning and economic department, accounting department and the marketing department must constantly coordinate their actions to set prices, agree on a pricing strategy. The profitability of an enterprise, its competitiveness, the volume of services provided and other indicators of economic activity depend on objectivity in justifying prices. The process of establishing baseline market prices for hotel services involves several stages. After determining the initial price of services, it is necessary to develop a pricing tactics, the process of price changes must be foreseen. The solution to these issues is achieved by the development of methods and techniques for tactical regulation of ethin. Pricing tactics are the selection by the hotel company of a possible strategy for changing the output market price of a service that best suits the purpose of the enterprise. The setting of standard prices for hotel services provides that the price does not depend on market changes and remains constant in order to create an association of a specific service with a specific price in the consumer, which makes the service unique. 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