Unlocking Profit: Smart Hotel Pricing Strategies
In today’s competitive hospitality landscape, pricing is more than just setting room rates. It’s about understanding traveller behaviour, leveraging your amenities, and using tools that help boost bookings without compromising profit. This is especially crucial for hotels and resorts in the Philippines, where tourism continues to rebound and competition is high.
Here’s how you can unlock greater profit through smarter pricing strategies.
Understand Your Market and Competitors
The first step in setting competitive prices is understanding who your guests are and what other properties are charging. Regularly monitor OTAs (Online Travel Agencies) like Agoda or Booking.com and see how your rates stack up against similar properties.
Use tools like rate parity software or even simple spreadsheets to track your competitors weekly. Being priced too high or too low can push potential guests to choose someone else.
Leverage Seasonal and Event-Based Pricing
In the Philippines, demand surges during local festivals, long weekends, and school breaks. Create pricing tiers based on seasons:
Peak Season (e.g., Holy Week, Christmas, Summer): Higher rates
Off-Peak Season: Promotional or discounted offers
Event-Based Pricing: Adjust rates during concerts, conferences, or local fiestas
Bundle Amenities to Increase Perceived Value
Rather than dropping your prices to stay competitive, add value through bundled offers. Include perks like:
Free breakfast
Late check-out
Complimentary toiletries (Vanity Kit, Shaving Kit)
Guests often perceive bundled packages as more luxurious—even if the actual room rate is slightly higher.
Use Flexible Pricing Based on Demand
Adopt a dynamic pricing model that adjusts rates based on real-time demand. This is a strategy used by big hotel chains, but now, even boutique resorts can access similar tools.
If your rooms are filling up quickly, raise your prices. If bookings are slow, use discounts to improve occupancy without sacrificing long-term value.
Highlight Your Property’s Unique Features
Guests are often willing to pay more when they feel they’re getting something special. This includes facilities and supplies that contribute to comfort and convenience.
Make sure your listings and website show off:
High-quality linens (Bed & Bath Linens)
Room essentials like Hotel Waste Bins
Small details make a big impact and justify premium pricing.
Offer Direct Booking Discounts
Encourage guests to book directly from your website by offering:
A lower price than OTAs
Exclusive upgrades (e.g., free room upgrade or welcome drink)
Loyalty points or discounts for return stays
Not only does this strategy boost conversions, but it also helps you avoid OTA commissions.
Final Thoughts: Price with Confidence
Pricing is never “set it and forget it.” Review performance monthly and test different offers. If you combine smart strategy with quality guest experiences, your property will consistently drive higher revenue.
Ready to upgrade your rooms and justify premium rates? Check out our full Hotel Supplies Collection for products that impress guests and support your pricing strategy.
