Understanding pricing per guest models

Pricing per guest is a pricing strategy that allows you to set different rates for the same room or unit based on the number of guests staying. Different pricing per guest models can increase your bookings using a tailored approach to pricing that appeals to a wider range of potential guests. You can set up pricing per guest via your connectivity partner, as explained here.

Choosing a pricing per guest model

To enable pricing per guest for your property, you need to be using one of the three pricing models below:

Derived pricing model

In this model, your existing standard price becomes the maximum occupancy rate for a room, and rates for each occupancy are calculated as one or more offsets. These offsets can be in the form of a percentage or an absolute value.

Here’s an example of triple occupancy room with the derived pricing model:

• Base rate for maximum occupancy of three guests: $100
• Offset for one unit change in occupancy: 5%

• Rate for double occupancy with 5% discount: $95
• Rate for single occupancy with 10% discount (5% + 5%): $90

Occupancy-based pricing model

This model lets you set different rates for a room or unit based on the number of guests occupying it. 

You can specify a rate for every combination of room type, date, and number of guests. Unlike the derived pricing model, you don’t have to specify offsets based on a standard rate, but you can decide on a set rate for each occupancy level.

Here’s an example of triple occupancy room with occupancy-based model:

• Rate for maximum occupancy of three guests: $150
• Rate for double occupancy: $140
• Rate for single occupancy: $130

You can specify which dates your occupancy-based prices are available and when they aren’t. 

Length of stay pricing model

The length of stay pricing model allows you to set up prices for reduced occupancies and lower the nightly rate for longer stays. You can set up prices for the next 729 days. To use this model, you need to specify the check-in date, the number of guests, and the rates that correspond to a particular number of nights.

For example, you can reduce the daily rate by $5 for every unit of reduced occupancy, or for every additional five days a guest stays.

Here’s an example of a triple occupancy room with three guests: 

• $100 for a stay of up to 5 days
• $100 - $5 = $95 for stays of 6–10 days 
• $100 - $10 = $90 for stays lasting more than 10 days

These are the rates for the same room with a $5 discount for reduced occupancy (two guests):

• $100 - $5 = $95 for a stay of up to 5 days
• $100 - $5 - $5 = $90 for stays of 6–10 days  
• $100 - $5 - $10 = $85 for stays lasting more than 10 days

These are the rates for the same room with a $10 discount for reduced occupancy (one guest):

• $100 - $10 = $90 for a stay of up to 5 days
• $100 - $10 - $5 = $85 for stays of 6–10 days  
• $100 - $10 - $10 = $80 for stays lasting more than 10 days

If you’re interested in setting up pricing per guest via the Extranet, refer to this article.