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Pricing your hotel or resort rooms isn’t just about setting numbers—it’s about understanding your market, leveraging guest demand, and staying competitive in an ever-changing industry. Whether you're running a boutique hotel in Palawan or a luxury resort in Boracay, pricing strategies can make or break your revenue.
In this guide, we’ll explore proven pricing tactics for Philippine hotels to help you attract more guests, increase revenue, and maximize occupancy—without sacrificing quality.
Understanding Your Market & Competition
Before setting your prices, you need to analyze the competition and understand your target market.
1. Know Your Competitors
Check what nearby hotels and resorts are charging for similar accommodations. If your property is in a prime location like Makati or Cebu, pricing should align with competitors offering similar amenities.
Pro tip: Regularly monitor local booking sites like Agoda, Traveloka, and Klook to compare pricing trends in your area.
2. Identify Your Ideal Guests
Who are your most frequent guests? Business travellers, families, staycationers, or backpackers? Each guest type values different things, which impacts how much they’re willing to pay.
For example, one of our hotel clients in Tagaytay offered personalized amenities like embroidered towels and premium toiletries (Check our hotel toiletry sets here) and successfully increased their room rates by 15%, catering to high-end guests.
3. Consider Seasonal Demand in the Philippines
Unlike Western countries with traditional peak and off-peak seasons, the Philippines has unique travel trends based on:
Local holidays (Holy Week, Christmas, long weekends)
Festival seasons (Sinulog, Panagbenga, MassKara)
Weather conditions (rainy season discounts vs. summer price hikes)
Adjusting pricing based on these fluctuations ensures you maximize revenue during high demand and maintain bookings during slow periods.
Essential Pricing Strategies for Hotels & Resorts
1. Dynamic Pricing: Adjusting Rates in Real-Time
Dynamic pricing means adjusting room rates based on market demand, occupancy levels, and external factors like major events.
How it works: If your hotel is near MOA Arena and there’s a big concert, increase rates due to higher demand. On slower weekdays, offer discounts to attract bookings.
Tools to use: Invest in revenue management software or use platforms like Cloudbeds or RateGain for automated pricing adjustments.
2. Value-Based Pricing: Charge for Experience, Not Just Rooms
Guests in the Philippines don’t just pay for a bed—they pay for comfort, convenience, and experience.
Enhance perceived value by bundling premium hotel supplies into your pricing strategy. Offering customized toiletries, plush bathrobes, and high-quality hangers (Explore our hotel hanger options here) creates an elevated experience that justifies higher rates.
A luxury resort we worked with in Bohol increased its average room rate by 20% after upgrading its towels and linens to premium hotel-quality fabric.
3. Length of Stay & Early Booking Discounts
Encouraging longer stays or rewarding early bookings helps improve cash flow and maintain occupancy rates.
Longer stays: Offer discounts for guests staying 3+ nights.
Early-bird discounts: Provide lower rates for guests booking at least 30 days in advance.
Direct booking perks: Promote exclusive discounts for bookings made via your website (not OTAs like Booking.com).
4. Localized Pricing Strategies for the Philippine Market
Foreign tourists and domestic travellers have different spending habits. Catering to both requires localized pricing tactics:
For international guests: Highlight premium experiences like spa packages, island tours, or chauffeur services.
For local travellers: Offer "Barkada Deals" for group bookings, family packages, or midweek discounts.
For OFWs on vacation: Create “Balikbayan Bundles” with added perks like airport transfers or welcome gifts.
One of our Cebu-based hotel clients launched a Filipino-themed ‘Boodle Fight’ dining experience as part of their room package, successfully increasing their bookings from local guests.
Using Data & Technology for Smarter Pricing Decisions
1. Track Booking Trends & Revenue Reports
Analyze past booking patterns and revenue reports to make informed pricing decisions. Key data points to monitor:
High and low occupancy months
Average daily rate (ADR) trends
Revenue per available room (RevPAR)
Guest feedback on price-value perception
2. Implement Revenue Management Software (RMS)
Using RMS automates pricing based on real-time market trends, saving you time and maximizing profits. Popular options include:
IDeaS Revenue Solutions
Cloudbeds Pricing Intelligence Engine
RoomPriceGenie
These tools analyze market conditions and recommend the best pricing strategies for your hotel.
3. Leverage Online Travel Agencies (OTAs) Without Losing Profitability
While OTAs like Agoda and Expedia help increase visibility, they take commission fees. To maintain profitability:
Offer lower rates or perks for direct bookings.
Use OTA exposure but drive traffic to your website with exclusive promotions.
Optimize OTA listings with compelling descriptions, high-quality images, and competitive pricing.
Promoting Your Pricing Strategies Effectively
1. Highlight Pricing Advantages on Your Website & Social Media
Make it clear why your rates offer great value. Use engaging social media posts, website banners, and email marketing to showcase:
Limited-time offers (e.g., "Book this week and get 10% off!")
Value-added services (e.g., “Free breakfast & spa access for direct bookings!”)
2. Engage Repeat Customers with Loyalty Pricing
Encourage repeat bookings by implementing a loyalty program for returning guests. Offer:
Exclusive discounts
Room upgrades
Complimentary services (spa, airport transfers, late check-out)
3. Create Urgency with Flash Sales & Limited-Time Discounts
Nothing drives bookings faster than a sense of urgency. Use tactics like:
“24-hour flash sale” promotions
“Book now, pay later” incentives
Countdown timers on your website
These strategies work especially well during slow seasons or last-minute cancellations.
Conclusion: Smart Pricing is the Key to Higher Profits
A well-planned pricing strategy can significantly impact your hotel’s revenue and competitiveness. By leveraging dynamic pricing, value-based packaging, and data-driven decision-making, you can maximize bookings and profitability.
💡 Looking to enhance your hotel’s guest experience while justifying premium pricing? Explore high-quality hotel supplies from Allora Linen today!
For more expert insights, check out these related articles:➡️ Enhancing Your Hotel’s Brand with Customized Supplies➡️ Stand Out with These Hotel Amenities for Business Owners in the Philippines
External Resources for Further Reading:
Booking.com: Pricing Strategies for Hoteliers
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