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When you operate in a dynamic industry… are your static rates holding you back? 🤷♂️
Markets shift. Demand fluctuates. Competitors adjust.
Yet, if your pricing stays the same, you’re leaving money on the table—or worse, losing bookings altogether.
Too many independent hotels still hesitate to embrace data-driven, automated pricing strategies that maximize revenue in real time. The result? Either underpricing and missing out on profit or overpricing and losing bookings.
So, the real question isn’t if hotels should use dynamic pricing—it’s who’s bold enough to adapt the fastest.
Dynamic pricing and revenue management strategies
Here are a few strategies that worked for me—and can work for you too:
1. Higher average daily rate (ADR) over occupancy
A full house at rock-bottom rates isn’t a win—it’s a missed opportunity.
Without a smart pricing strategy, 100% occupancy can still generate less profit than 80% occupancy with the right rates.
Here’s why:
✅ Higher ADR > Higher Occupancy
Selling every room at a discount might feel like a success, but it leaves money on the table. A strong revenue strategy focuses on maximizing revenue per available room (RevPAR), not just filling beds.
✅ Dynamic pricing wins
A well-optimized pricing strategy adjusts rates based on demand. When demand is high, charge more. When it’s low, stay competitive. The right price at the right time maximizes both ADR and occupancy.
2. Maximize revenue—beyond rooms
With ADR climbing every year, many hotels think they’ve hit the ceiling in room revenue. But with rising operational costs, relying on room rates alone isn’t just limiting—it’s risky.
The real game-changer? Tapping into TrevPAR, RevPAG, and RevPAM.
✅ TrevPAR
Total revenue per available room, including F&B, spa, and extras.
✅ RevPAG
Revenue per available guest, maximizing guest spending beyond the room.
✅ RevPAM
Revenue per available square meter, ensuring every space drives value.
The opportunity goes beyond selling rooms—it’s about upselling, cross-selling, and unlocking new revenue streams across your entire property. Are you tapping into your guests' full potential?
IMG: Nadja transformed unused space at the Bliss into a Gin & Tonic bar, attracting walk-ins and passing foot traffic.
3. Stop acquiring, start retaining
Guest loyalty as a revenue management strategy doesn’t get nearly enough airtime.
If you can eliminate the cost of acquiring a new guest, you win. And sometimes, it’s as easy as:
✅ Sending post-stay updates that keep you top of mind
✅ Showing up in their inbox for upcoming special holidays
✅ Flirting with a 5% direct booking discount
A returning guest is a high-margin guest. No OTA commissions. No expensive ads. Just pure, repeat revenue.
Hotels that win don’t just fill rooms once—they create cycles of return visits with the right mix of automation and personalization.
4. Set minimum stay requirements
Festivals, conferences, long weekends—high-demand periods are prime opportunities to maximize revenue per booking.
Why it works:
✅ Longer stays mean lower turnover costs (less cleaning, fewer check-ins/outs).
✅ Fewer reservations = more efficiency, less operational strain.
✅ Attracts higher-value guests willing to commit—and pay more.
Example: During a music festival, a 2-night minimum ensures you’re catering to serious travelers who value the experience (and won’t blink at premium rates).
