Boost your revenue with occupancy-based pricing

Updated 1 year ago

Occupancy-based pricing allows you to set different prices for the same room, based on the number of people staying in it. For example, a room that fits 4 guests could also be booked by groups of 3 or less. This lets you reach an even broader group of travelers while filling your more spacious and valuable rooms with ease.

Note: Occupancy-based pricing can only be set on using a channel manager. You’ll need to check that yours can support this functionality.

What does occupancy-based pricing look like?

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

Your current situation:

  • 4 people staying in a quadruple room: €100

With occupancy-based pricing:

  • 4 people staying in a quadruple room: €100

  • 3 people staying in a quadruple room: €90

  • 2 people staying in a quadruple room: €80

  • 1 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 travelers, since 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 travelers, makes them easier to fill, and leaves 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 in to occupancy-based pricing once. To get started, visit your channel manager and switch your property to occupancy-based pricing. This is important to prevent errors when your regular rates are switched to occupancy-based rates.

Once that’s done, you can set your occupancy-based prices through your channel manager. You need to set prices for all room rate combinations for all bookable dates.

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