Pricing competitively requires a data-driven, dynamic approach that adjusts to seasonality, demand patterns, and competitor behavior. Here’s are some key tips on how you should structure your pricing strategy:
Establish a Dynamic Pricing Strategy
Using a fixed price or manual adjustments won’t keep you competitive.
🔹 Base Rate Benchmarking:
- Analyze historical occupancy & ADR (Average Daily Rate) to determine a competitive base rate.
- Compare your rates with similar properties in your area (size, location, amenities).
- Check your RevPAR (Revenue per Available Room) against competitors to measure performance.
🔹 Seasonal Adjustments:
- High Season (October – March): Demand is strong; increase rates but stay within market trends.
- Shoulder Season (April – May, September): Reduce rates gradually as demand softens.
- Low Season (June – August): Expect lower occupancy; apply discounts, long-stay promotions, and flexible policies.
Track Competitor Pricing & Market Trends
Regularly monitor similar listings on Airbnb, Booking.com, Expedia, Agoda, Ostrovok, and HomeAway.
Implement Discount & Promotion Strategies
To maximize occupancy, use strategic pricing tactics:
- Length-of-Stay Discounts (Boosts long-term stays)
- Last-Minute Discounts (Fill gaps in occupancy)
- Early Bird Pricing (Encourages advance bookings)
- Non-Refundable Rates
Optimize Pricing Per Channel
Different platforms have different buyer behaviors—adjust pricing accordingly:
🔹 Airbnb: Guests expect transparent pricing & discounts → Offer long-stay promotions.
🔹 Booking.com: Business travelers book here → Offer free cancellations & corporate rates.
🔹 Expedia & Agoda: Competitive for international travelers → Optimize with geo-targeted rates.
Reassess Weekly Based on Performance
Monitor Occupancy & ADR Trends:
- If bookings slow down → Adjust pricing downward.
- If occupancy is high too soon → Increase rates slightly.
Track your Booking Window:
- If bookings happen too last-minute → Reduce minimum stays & lower rates earlier.
- If bookings are mostly in advance → Increase early bird discounts.
We hope that this has been helpful for you. If you need continuous support to execute this actions and more, contact our Customer Success team to subscribe to our Revenue Management Services, where we will be closely monitoring your portfolio’s performance alongisde you.