For many new independent property owners, pricing is both exciting and nerve-wracking. Setting your rates feels like the moment your dream turns into a real business. But it also raises a big question: How do you know when it’s time to raise your prices and when you should hold steady?
NB: This is an article from TakeUp
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It’s a delicate balance. Price too high, and you could slow bookings. Price too low, and you’re working harder for less. The key is understanding what your rates are telling guests and how they reflect the health of your business.
Here’s how to think it through.
When It Is Time to Raise Your Rates
1. You’re Selling Out Too Fast
If you notice weekends or popular dates are booking up immediately after you release them, that’s a strong signal you’re priced below market demand.
Consistently selling out months in advance means you’re leaving money on the table – and guests likely would have paid more.
Raising rates slightly for high-demand dates won’t scare away your audience; it simply matches your pricing to the value guests already see.
2. Your Guest Experience Has Improved
Added new amenities? Upgraded your tents or cottages? Introduced local experiences or complimentary extras?
Enhancements like these justify higher rates – not just to cover costs, but because they increase perceived value.
When you invest in the guest experience, your pricing should evolve with it.
3. You’re Outperforming Competitors
It’s always helpful to stay aware of what other properties in your area are charging, but competitor pricing should never be your north star. What matters most is how your property performs in relation to demand, occupancy, and guest satisfaction.
If you’re consistently filling nights faster than others nearby – or maintaining high occupancy at your current rates – that’s a signal your market sees more value in what you offer. In that case, modest rate increases can help you capture that value without chasing anyone else’s pricing strategy.
The takeaway: competitor rates are worth noting, but your own pace, demand trends, and guest experience should lead your decisions.
4. Your Costs Have Increased
Inflation, staffing, maintenance, and utilities can all creep up over time. Even small changes can erode profitability if your rates stay flat.
Guests understand that costs change – especially when the value and experience justify it. Don’t be afraid to adjust to stay healthy as a business.
