Today’s guests don’t all book the same way, and yet too many hotels are still pricing like it’s 2015. You know, back when you could rely on steady booking windows, consistent guest behavior, and a clear OTA vs. direct channel split.

NB: This is an article from Topline Revenue, one of our Expert Partners

Subscribe to our weekly newsletter and stay up to date

Those days? Gone.

Booking windows are tighter. OTAs have splintered into loyalty tiers, mobile-only rates, and AI-powered suggestions. Guest behavior? It’s all over the place. Which means that one-size-fits-all pricing strategies are quietly eroding your conversion rates.

The answer isn’t just “more discounting.” It’s better segmentation.

Let’s talk about what’s really changed – and how you can price smarter, not harder.

The Problem: Guest Behavior Has Outpaced Your Old Pricing Playbook

The Booking Window Has Officially Collapsed

Guests are booking later than ever. In many U.S. markets, 50–60% of bookings are made within 7 days of arrival. In some urban properties? It’s closer to 72 hours. The new guest mantra is: “Let’s see how we feel Friday afternoon.”

And if that wasn’t chaotic enough, cancellation policies are so flexible now that even confirmed reservations feel like a soft maybe.

The result? Your pacing reports are giving you false confidence one minute and panic the next.

Channels Have Fragmented, and So Have Their Shoppers

You’re not just managing Expedia and Booking anymore. You’re managing:

  • OTA loyalty tiers (Genius, VIP, etc.)
  • Mobile vs desktop shoppers
  • Google Hotel Ads metasearch rates
  • Your own brand site + retargeting flows
  • Promo codes and private offers

Each channel attracts different behaviors, expectations, and timing. If your pricing looks the same across all of them? You’re either over-discounting to your best customers or under-converting where it matters.

Your Guests Are Not Who You Think They Are Anymore

There’s no such thing as a “typical leisure traveler” or a “standard business guest” anymore.

  • Business travelers are tacking on weekend leisure stays (hello, “bleisure”)
  • Remote workers are booking 5-night getaways midweek with 12 hours’ notice
  • Families are using Google Flights and OTAs like pros—shopping multiple hotels at once
  • Even price-insensitive guests are still value-sensitive. They’ll pay $50 more—but only if you make it feel worth it

That old pace-based revenue plan that said “we’re pacing 10% behind, let’s drop BAR across the board”? That just doesn’t work anymore.

The Solution: Segment-Specific Pricing That Actually Converts

What Is Segment-Specific Pricing?

It’s not about 300 rate plans and endless complexity. It’s about defining clear booking behaviors and motivations, and aligning your pricing and offers to match. Think of it like this:

  • Not all procrastinators are deal hunters
  • Not all OTA bookers are disloyal
  • Not all direct bookers are rate-sensitive

Your job is to connect the price (or value) to the behavior – not just the label.

Read the full article at Topline Revenue