Setting up Occupancy Based Pricing

Updated 2 months ago | 3.5 min read
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Occupancy Based Pricing can help you increase bookings, as well as your ranking and visibility in search results.

It allows you to maximize occupancy in your more spacious––but usually harder to fill––and most valuable rooms, by offering a price tailored to the number of people staying in each room.

Note: Occupancy Based Pricing is available only if your channel manager supports this function.


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    Understanding Occupancy Based Pricing

     

    Occupancy Based Pricing allows you to set different prices for the same room or unit based on the number of guests staying in it. 

    For example, if you only set one price for a quadruple room––based on four guests staying in it––you might miss out on bookings from groups of less than four. 

    By showing a different price to each group, Occupancy Based Pricing lets you offer this same room to groups of two, three, or even solo guests. You’ll always be in control of the discounted rates and the number of sub-occupancies you want to offer.

    Here’s an example of Occupancy Based Pricing:

    Quadruple room with standard pricing

    • Price for four people: £100

    Quadruple room with Occupancy Based Pricing

    • Price for four people: £100
    • Price for three people: £90
    • Price for two people: £75
    • Price for one person: £60

    A solo occupancy rate is a form of Occupancy Based Pricing specific to double rooms. By offering this tailored rate, you’ll make your double rooms more appealing to solo travelers.

    Here’s an example of how it works:

    Double room with standard pricing

    • Price for two people: £100

    Double room with a solo occupancy rate

    • Price for two people: £100
    • Price for one person: £80

    The discount you offer on your solo occupancy rate is always up to you.


    Benefitting from Occupancy Based Pricing

     

    By offering tailored prices for a room, you’ll:

    • Increase revenue by 3.5% on average
    • Appear in more searches due to your flexibility on occupancy, and therefore reach more potential guests
    • Boost your more valuable rooms and fill them more easily

    Activating Occupancy Based Pricing

     

    To start offering tailored rates, your channel manager will first need to activate Occupancy Based Pricing for you.

     

    Contact your channel manager and ask them to switch your property to Occupancy Based Pricing. Then, go to your rooms’ price settings, and set your new occupancy-based rates.

     

    You’ll need to set rates for all room-rate combinations – such as breakfast included, non-refundable, or free cancellation – and all bookable dates.

     

    If you have any trouble setting up Occupancy Based Pricing, contact us via your Extranet inbox.

     

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