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Three tips before the high season to increase revenue through room pricing

Updated: Mar 16

For accommodation providers, the winter period brings many changes and challenges. One of the most obvious problems is the decrease in tourist numbers, especially in regions where winter tourism is not common. The cold weather and possible snowfall may make people less willing to travel to these destinations, leading to a drastic reduction in occupancy rates in hotels and other types of accommodation. At the same time, the decrease in hotel occupancy during the winter period also presents an opportunity for accommodation providers. Although there are fewer tourists during these months, the quieter periods can be ideal to focus on activities that tend to be neglected during the busier seasonal periods.

The potential of the quiet season

To prepare properly for the next season, we need to take advantage of the quieter periods when we have the opportunity, time and energy to do things that are not so easy to do in the busier months. Below we highlight three tasks that can make a big contribution to a successful 2024 season (of course, the list is not exhaustive, but these are the closest to RoomRaiser's area of expertise 😊):

1. Analysis of our Sales and Marketing/Revenue Management and Pricing processes.

Laptops and manual work
With RoomRaiser you can forget manual room pricing

Identify improvements, opportunities, to do’s, strengths and weaknesses.  Be sure to cover the following topics/areas in your home research:

  • Analysis of occupancy and prices’ statistics.

  • Examining our buyers/guests and identifying opportunities to exploit.

  • Sales channels - how is our own website performing? Is it worth opening new channels?

  • Identify and analyse competitors. (There’s no such thing as a hotel not having competitors 😊. And existing ones are constantly changing, so it's worth revisiting this from time to time.)

  • Examine pricing processes - define a new pricing strategy?

  • Investigate the hotel's online reputation. Checking reviews, making statistics from them.

  • What is the unique selling point of your hotel that guests like most about it? What makes it special and what can be built on?

  • Create occupancy and revenue plans.

For more information on a comprehensive audit covering the above areas, please contact us.

2. Introduction of a well-designed dynamic pricing strategy.

Image of Rob, the mascot of RoomRaiser.
Let our pricing robot do the work for you.

It is now well known in the tourism industry that good, dynamic pricing can maximise a hotel's revenue. But why is this so important? In our experience, many accommodation providers are still missing out on opportunities by:

  • Working with fixed or seasonal prices.

  • Selling their rooms too cheaply.

  • Not pricing the days of the week differently.

  • Being slow or unresponsive to market changes (supply or demand).

  • Not reacting, or reacting late, to important events and holidays (which are not always domestic, they can be holidays in neighbouring countries...).

  • Having the difference between their lowest and highest prices at a too small level.

  • Not using or excessively using the length of stay restrictions.

We hear a lot lately about hotels implementing hidden price increases (e.g. mandatory heating contributions from guests during the winter season). A well-designed dynamic pricing strategy that takes into account the pricing of competitors is a much better solution. Moreover, guests are already used to dynamic pricing, as they experience it in other areas of life. This way you can maximise your profit without annoying your guests with hidden price increases.

A well-designed dynamic pricing

  • Is based on the right strategy.

  • Is always adapted to the opportunities offered by demand.

  • Is based on knowledge. You know your clientele, their changing patterns over time and their booking habits. Price changes have to happen accordingly.

  • Is based on data and not subjective factors.

  • Constantly takes into account competitor offers.

And the result? A possible 10 - 30% increase in revenue. There are several ways to do it. We of course suggest automation, where you no longer need to worry about human resources and the associated costs.

If you want to implement a well-functioning dynamic pricing system, thereby increasing your revenue and achieving this with less work, contact us and use RoomRaiser's digital pricing service!

3. Introduction of new software solutions, replacement of old ones.

In countries or regions where winter tourism is not significant, the first two months of the year are the best time for most hotels to carry out this task, as the implementation of a new software is a very demanding task. For example, the following types of software may be involved:

  • PMS (Property Management System)

  • RMS (Revenue Management System - systems for pricing and sales, such as RoomRaiser 😊)

  • Channel Manager

  • Booking engine

  • F&B systems

Considering the following questions can help you choose the right system:

  • What are our needs? What is the problem we want the software to solve?

  • What is the expected outcome of the new system (time savings? improved service? more revenue?)

  • What features do we need?

  • What solutions are on the market?

  • What are their features?

  • What are their pros and cons?

  • What are the experiences with these systems (reviews)?

  • What integrations do they have?

  • What are the prices? Do you have to sign a loyalty period?

  • Can I try them for free?

  • What training and product support do we get with them?

If we can choose the right software, and then take the time to set it up and learn how to use it, life will be easier next season - we'll make more money with less work (because the machines will do the work for us 😊).

Interested in dynamic pricing?

If you would like to learn more about dynamic pricing, please look around on our website where you can find more expert content. We offer information and advice on how to take full advantage of dynamic pricing and how to apply it in your own hotel.

If you need personalised advice and consultation on implementing or optimising dynamic pricing, don't hesitate to contact our team. We are ready to provide you with a free consultation to understand your business' specific needs and objectives.



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