How the independent accommodation sector is missing out on revenue by sticking to flat rates over dynamic and strategic pricing.
In November 2022, we polled 263 independent accommodation owners and managers across the UK, US, France, Germany, Iberia and Italy on their approaches to pricing.
Static rates vs. dynamic pricing
of independent accommodation owners or managers update their rates just once a year.
Yet studies show that updating your rates much more frequently is the way to maximize revenue. Accommodations that adjust prices dynamically based on current demand earn 8.6% higher RevPAR.*
Respondents are much more likely to base their pricing strategy on seasonality and events than any other factor.
5% of participants don’t have any strategy in place for their pricing! 🤔
of independent accommodation owners or managers never run promotions.
However, other respondents are running promos for a wide range of reasons…
To sell off last
To get guests
to stay longer
To stand out from
To get guests
to book early
You can’t drive revenue with static rates!
Is it time you made your pricing a little more…dynamic? Here are our 4 steps to take your rate setting to the next level and capture the most revenue from each room.
Develop a pricing strategy that goes beyond flat rates and guesswork. Identify and track your most important KPIs, and collect competitive market data to inform your strategy. Don’t forget to take advantage of seasonal trends and events too!
Run promotions to influence booking behaviors and stand out from your competition. Drive direct, early and repeat bookings with special offers. Target your audience with unique promo codes. And sway bookers with group or corporate deals.
Save time reaping the benefits of dynamic pricing with automation. A first-class PMS allows you to automatically increase or decrease rates at occupancy thresholds you decide. That way, your pricing instantly adjusts to reflect fluctuating demand.
*Abrate, Graziano, Juan Luis Nicolau, and Giampaolo Viglia. “The impact of dynamic price
variability on revenue maximization.” Tourism Management 74 (2019): 224-233