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Boost your revenue with occupancy-based pricing

Updated 4 months ago

Occupancy-based pricing allows you to set different prices for the same room, based on the number of people staying in it. A room that fits four guests, for example, could also be booked by groups of three or less. This allows you to reach an even broader group of travellers, and to fill your more spacious and valuable rooms more easily.

Please note: Occupancy-based pricing can only be set via the channel manager. You’ll need to check that yours is able to support this functionality.

What does occupancy-based pricing look like?

It’s up to you to decide how many sub-occupancies you want to set up, and what discount you want to give. Here’s an example:

Your current situation:

  • Four people staying in a quadruple room: €100

With occupancy-based pricing:

  • Four people staying in a quadruple room: €100

  • Three people staying in a quadruple room: €90

  • Two people staying in a quadruple room: €80

  • One person staying in a quadruple room: €60

What benefits can I expect?

Our data shows that over 65% of properties currently using this pricing model have benefited from it. By offering tailored prices for your rooms, you can:

  • Appear in more search results Rooms with occupancy-based pricing are visible to more travellers, as different occupancy options match broader search criteria.  

  • Increase occupancy of your more valuable rooms This pricing model opens your bigger, more expensive rooms up to more travellers, making them easier to fill and leaving your cheaper rooms available for additional guests.  

  • Boost revenue Our data shows that occupancy-based pricing can result in an average revenue increase of 3.5%.

How do I activate occupancy-based pricing?

You only need to opt into occupancy-based pricing once. To get started, please visit your channel manager and switch your property to occupancy-based pricing. This is important to avoid errors when your regular rates are switched to occupancy-based rates.

Once this is done, you can set your occupancy-based prices via your channel manager. Please note that you need to set prices for all room rate combinations for all bookable dates.

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