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Amount per additional person: an essential lever in revenue management

Here is the transcript of the video:

Hello everyone, welcome to the J'affich Complet Youtube channel. I am Guillaume , management manager within the team. Today, I wanted to discuss with you the subject of the amounts per additional person on your rates. So, should we use it, should we not use it?

So, first of all, we will directly answer the first question: yes, we must put amounts per additional person . This will constitute a lever in its own right for revenue management . You must first analyze what price you are going to charge per additional person. It depends on the type of property you have. You have to examine whether in general you have a T2, a T3, whether you have more reservations of one person, two people, or even more. If you have a sofa bed, for example, in the living room, this is something that needs to be analyzed.

If you tend to have maximum occupancy all the time, this is an aspect you can play on. So, we will have to analyze this like everything in management , everything comes from analysis as a priority upstream. Then, this will allow you to make your choices and have this amount. This amount is generally per additional person per night. It's not just an amount per person for the entire stay, it's really an amount that will be added to the price of the night. So, this will necessarily multiply by the number of nights, and this is an important lever.

This is something that must be analyzed, but also a lever for the platforms. Being able to manage this can be in base period, for example. We can try to set the base occupation lower, which will allow you to have a lower call price, potentially improving your visibility on the platforms. Then, if you really have a request for six or more people, the calculation will be based on the price.

An example: for a T4, logically, the basic occupancy could be two people per room, therefore six people for a T4. But you can lower it, which will allow you to have a lower call price, potentially improving your visibility on the platforms. And then, if you really have a request for six or more people, the calculation will be based on the price.

But if someone is looking for accommodation for only three people because they want a room each, at least you will come out cheaper, you will be more attractive, and you will open yourself up to this new clientele. This is something that should not be overlooked.

I hope that you will like this little information regarding the additional amount per additional person during the amount of your nights. I invite you to say what you think, if you already apply additional amounts to your property, what are the amounts. And something that I had forgotten before concluding is obviously the amounts, they must be adapted according to the night. The more you are in a sector which will have high basic amounts on the price of the night, well obviously, it will generate a percentage that you will calculate generally people calculate it in relation to their charges, also by linking it to linen , to the cost of laundry or things like that. But there you go, it will be adapted.

Don't hesitate to say in the comments what you are already doing and also to specify what destination you are on so that it is coherent and that other listeners can understand. And otherwise, I invite you to follow what we are doing on J'affich Complet and until then, I wish you a good day.

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