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Pricing Techniques to Increase Hotel Revenue

It's incredible how much money business people and those in the hotel industry make. This is the product of their dedication and hard work. The proper hotel software can help you accomplish this. To reach such heights in terms of profit or revenue generation, one needs to have an in-depth understanding of the hotel industry and its market. Because of this, hotel owners make significant investments in their guests' needs, but only a small percentage experience outstanding income growth. This mainly happens because some hotels use flimsy pricing tactics without taking consumer behavior and the use of the most recent Hotel Software into account.


The basic goal of any pricing technique is to increase revenue. Setting prices for your rooms and services is not a part of the pricing technique. It is the way you mold and manipulate your rates in response to the market and your customers' needs.

One of the most critical aspects of Hotel Management is hotel pricing. You must strike the perfect balance between giving your customers a luxurious experience and keeping your hotel prices reasonable.

As a result, you cannot just raise the pricing and leave things alone. It is a procedure that requires ongoing revision. To do this, you must have a thorough understanding of the present state of the market and current trends in price modulation.


Hotel revenue management is a challenging endeavor, and there is no one magic recipe to make it more effective. To reap the greatest benefits, you need to combine several different tactics. Included below are different pricing techniques that a hotelier will need, along with examples to make each one easier to comprehend and apply.

1. Value-based Pricing

Value-based pricing is the most feasible approach when it comes to pricing techniques. Thus, it is simply the price that must be paid in exchange for your service.

For instance, a smoking room will cost more than a non-smoking one since it offers a higher-value extra service. In the same manner, rooms with a view of the beach will be more valuable and more expensive. Hence, this type of pricing is determined by what you offer to your guests, how much that particular service costs you, or its value range in the market. Using a Hotel Software will enable you to accomplish all of this.

2. Captive Product Pricing

Captive Product Pricing simply means setting a single price for a group of related services. This entails determining a single price for two or more codependent services.

Consider this: A regular room costs $100, and using the pool adds an additional $30, bringing the total to $130. But, there are no extra fees for using the pool if you select a $110 poolside room.

Customers who really enjoy spending time in the pool will choose the poolside room package thanks to this great price rather than booking a room and paying an additional fee to use the pool. The proper hotel software can be used to do this, which typically puts the hotel ahead financially.

3. Cross-selling-based Pricing

This pricing strategy essentially involves selling an additional hotel product to an existing customer, as the name already suggests. In the hotel industry, cross-selling has recently gained popularity as a component of pricing schemes. Customers are excited to buy extra items in addition to the ones

they previously reserved in advance. The best time to use it is also when you are giving your guests an email confirmation of their reservation.

Example: Via routine promotional emails, you can advertise additional services like massage, a gym, well-liked tours, and pick-up and drop-off services. Customers tend to get more interested in you as a result, which leads to more reservations.

The key to winning the Hotel Management game is using the proper strategies at the appropriate moments. Thus, using the appropriate hotel software as well as adopting the right pricing technique. If you can accomplish all of these, it won't be difficult to become a successful hotelier, turn around your business, and also boost revenue.

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