What is Occupancy Based Pricing?

Updated 1 month ago
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Note: To benefit from Occupancy Based pricing, your Channel Manager needs to support this functionality. Check "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 occupancy rate of your more spacious (but usually harder to book) and most valuable rooms by offering a price tailored to 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 same room for groups of 3, 2, or even to a single guest while showing a different price to each group.

The same logic applies to rooms with double occupancy, triple, or more. That way travelers will see these prices when searching for accommodations, and your properties will be fit multiple search criteria. 

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

For example, take a quadruple room (but you can do this for rooms that fit 2, 3, or more 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 always control your rates. You have the freedom to decide how many sub-occupancies you want to set and the discounts 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 appear in more searches due to the flexibility on occupancy.
  • Boost your more valuable rooms: With Occupancy Based Pricing, you'll have an easier time filling your bigger rooms.

How can you activate Occupancy Based Pricing?

To start sending us prices, reach out to your Channel Manager and ask them to switch your property to Occupancy Based Pricing. This will ensure a smooth transition of all your existing rates and prevent errors. 

Once your channel manager takes action and communicates your new set-up, our travelers will start receiving your updated prices. 

Note: Occupancy Based Pricing—despite being a one-time action to opt in—requires you to set prices for all the room rate combinations for dates when your property is open on Booking.com.

 

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