What is Occupancy Based Pricing

Updated 2 months ago

Note: For you to benefit from Occupancy Based pricing, your Channel Manager needs to support this functionality. Check the Set Rates Based on Occupancy on the Channel Manager Features Page, in the Rates and Availability section.

What does Occupancy Based Pricing mean?

Occupancy Based Pricing allows you to maximize the occupation rate of your more spacious (but, usually harder to book) and most valuable rooms by offering a tailored price depending on the number of people staying in each room.

How does Occupancy Based Pricing work?

If your room can fit up to 4 people, why limit yourself to groups of 4 guests? Through Occupancy Based Pricing you can offer the room for groups of 3, 2 or even to a single guest, showing a different price to each group.

The same logic applies to rooms with double occupancy, triple or more. In this way, travellers will see these prices when searching for accommodation, and your properties will be suitable for multiple search criteria. 

With Occupancy Based Pricing, you can set prices depending on the number of people staying in one room 

Here is an example, for a quadruple room (but you can do this for rooms that fit 2, 3, or more than 4 guests just as easily): 

Standard Price, your current situation:

  • Price for 4 people, 100$

Example with Occupancy Based Pricing, for a Quadruple Room: 

  • Price for 4 people: 100$
  • Price for 3 people: 90$
  • Price for 2 people: 80$
  • Price for 1 person: 60$

Note: You can always keep control of your rates, as you have the freedom to decide how many sub-occupancies you want to set, and the discount you want to give. 

What are the Benefits of Occupancy Based Pricing? 

By offering a tailored price for your rooms, you will: 

  • Increase Revenue - Occupancy Based Pricing increases revenue by 3.5% on average.
  • Reach more people in the Search Result page - Your room will now show in more types of searches, due to the flexibility on occupancy.
  • Boost your more valuable rooms - With Occupancy Based Pricing, you will have an easier time filling your bigger rooms.

How can you activate Occupancy Based Pricing?

To start sending us prices, please reach out to your Channel Manager, and ask them to switch your property to Occupancy Based Pricing. We need this step to ensure a smooth transition of all your existing rates and avoid errors. 

Once your channel manager takes action and communicates your new setup, our travellers will start receiving your updated prices. 

Please note that Occupancy Based Pricing, while being a one time action for opt-in, requires you to set prices for all the room rate combinations for dates in which your property is open on Booking.com.

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