Check 04 Pricing

Nothing in your calendar is wrong.

It just has two prices for fifty different weeks.

Revenue management was invented for hotels that have a revenue manager. Most independent properties have neither the person nor the tool, so they do the sensible thing: two seasons, two prices, and a discount when it gets quiet. The data to do better is already in the building. Nobody is reading it.

01The two-price calendar

The nights that could have carried more sold at the low number.

Open your calendar for the next ninety days. In most boutique properties it holds two rates, high season and low, set once a year, usually in the same week the accountant asks about last year. Between those two numbers there are weeks that behave nothing like each other: a long weekend, a regional event, a school holiday in the country your guests come from, a week where the weather forecast quietly fills the mountain. They all sell at the same price.

That is not a discount you chose. It is a discount you never saw.

02The panic change

The last rate you changed, you changed because of a feeling.

Find the last rate you actually moved and ask why. In our experience the answer is one of three: a competitor you happened to check, a quiet week that scared you, or a feeling about the season. What is almost never on the list is a number from your own hotel: how fast this March is filling compared to last March, which channel brought the last twenty bookings, what an empty Tuesday costs against a discounted one.

Your PMS and your channel manager have that number. They have had it for years. It simply never reaches the moment when the rate gets set.

03Selling against yourself

Same room, same night: your website against Booking.com.

This check takes a minute. Pick one room and one date. Look it up on Booking.com, then on your own website. If the OTA is cheaper, or the same price with free cancellation while your site asks for a deposit, every guest who compares will choose the channel that charges you commission.

Rate parity does not mean your site has to be more expensive. It means it should never be the worse deal.

04What changes

Not an algorithm. A weekly look at three things.

Pricing with data is not software that moves your rates while you sleep. It is a weekly look at your own pace against last year, at what your competitive set is asking, and at what the calendar holds. Out of that comes one recommendation per room type and date range, in plain language, with the reason attached. You keep the final say.

The difference is that the decision gets made every week with your own numbers, instead of once a year with a feeling. That is the whole method, and it is the next section.

05Run the check

Five questions. Answer for how you price today, not how you intend to.

Nothing leaves this page: no email box, no result sent anywhere, and closing the tab erases it. The result describes how your rates get set, not a score to be proud of.

Question 01

How many different rates does your next ninety days hold, per room type?

Count them in the channel manager or the PMS, not from memory.

Question 02

Why did you change the last rate you changed?

The real reason, not the one you would give a guest.

Question 03

Same room, same night: your website against Booking.com.

Look it up now. Price and conditions, not just price.

Question 04

How long would it take you to say how this month is filling compared to the same month last year?

Bookings on the books today versus the same day last year. Time it.

Question 05

When a week looks empty, what is your first move?

Think of the last time it happened, not the ideal answer.

0 of 5 answered
Keep reading

Pricing

Everything we publish on rates, pace and the direct-versus-OTA question, written for people who set the price themselves. What to look at each week, what to leave alone, and when a package beats a discount.

Read the Pricing articles  →