Pricing hotel rooms is more than setting a number on a website, it’s a strategic decision that directly impacts revenue, occupancy, and guest satisfaction. Yet, many hoteliers continue to make mistakes that leave money on the table: relying on outdated methods, inconsistent rate management, or failing to anticipate demand.
NB: This is an article from Staah
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With a well-structured hotel pricing strategy and the right tools, such as a channel manager for hotel pricing, these errors can be minimized, allowing hotels to optimize revenue and reduce operational headaches. In this article, we explore common mistakes, how channel managers help, and how to start planning seasonal pricing strategies to capture peak demand.
Mistakes Hoteliers Make That Reduce Revenue
Many pricing errors come not from lack of effort but from missing critical demand signals and failing to use available tools effectively. Here are examples that hoteliers see in the real world:
1. Ignoring Local Demand Drivers
A boutique hotel near a stadium might use last year’s average rates without considering this year’s big calendar events. For instance, when a major music festival or championship game draws thousands of visitors, demand surges rapidly and rates that worked last month suddenly underperform.
Take a city hosting a major concert or sports halftime show (like a regional Super League or stadium concert event). Hotels that didn’t adjust pricing ahead of time often end up with fully booked rooms at lower rates than what the market would support, simply because they didn’t use tools to forecast or plan for that event.
This is where understanding your hotel room pricing strategy matters. Relying on intuition alone, “Last year was okay, so we’ll do the same thing” is no longer enough.
2. Inconsistent Channel Pricing
Suppose your property raised rates on your direct booking engine, but an online travel agent (OTA) still shows last week’s lower price. Guests may book where it looks cheaper, or worse by cancelling the direct bookings. Without consistent pricing across platforms, you lose not just revenue but control of your brand value.
