What is Occupancy Based Pricing?

Updated 9 months ago
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Note: To benefit from Occupancy Based Pricing, your channel manager needs to support this function. Check “Set rates based on occupancy” on the “Channel manager features” page, under the “Rates and availability” section.

What does Occupancy Based Pricing mean?

Occupancy Based Pricing allows you to maximize the occupancy rate of your most spacious and valuable (but usually hardest to book) 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? Through Occupancy Based Pricing, you can offer the room for groups of 3, 2, or even to a single guest by showing a different price to each group.

The same logic applies to rooms with double occupancy, triple, or more. This way, travelers will see these prices when searching for accommodations, and your properties will match 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 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 control your rates, because you’re free to decide how many sub-occupancies to set and the discount to offer. 

What are the Benefits of Occupancy Based Pricing? 

By offering tailored prices 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 appear in more search results, due to the flexibility of occupancy.
  • Boost your more valuable rooms – With Occupancy Based Pricing, it will be easier to fill your bigger rooms.

How do you activate Occupancy Based Pricing?

To start sending us prices, ask your channel manager directly to switch your property to Occupancy Based Pricing. This step to ensures a smooth transition of all your existing rates and prevents errors. 

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

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


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