The Art of Hotel Room Pricing: Strategies for Sustainable Profitability 

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Hotel room pricing is one of the most essential but crucial aspects of Hotel Management. It is vital because you need to find the right balance between providing a luxurious experience and keeping your hotel affordable for your guests. In this blog, we will talk about why a hotel room pricing strategy is important, the steps of implementing it, and how it helps increase hotel revenue.  

Importance of Hotel Room Pricing 

Hotel room pricing is essential for hotels as it directly impacts revenue, profitability, and market position. A well-executed pricing strategy allows hotels to maximize its revenue by attracting guests. Additionally, pricing decisions contribute to a hotel’s market positioning, helping to establish its brand perception and differentiate itself from competitors. By leveraging a proper pricing strategy, hotels can achieve sustainable profitability and deliver value to the guests.  

Essential Steps to Implementing Pricing Strategy

Developing an effective pricing strategy is important for hotels to optimize revenue and attract the right target audience. Before setting a hotel’s room price, some points should keep in mind like 

  • Gain a deep understanding of your target audience 
  • Analyze your competitor hotels’ room pricing 
  • Understand your guests’ expectations 

When you know all the answers, it will be easier to set the best room price for your hotel and make maximum revenue from it.  

Pricing Strategies for Hotels to Increase Revenue

Revenue Growth

Competitor Based Pricing:

Looking at your competitors is a reliable way to measure your performance and market trends. By monitoring and analyzing competitors’ pricing strategies, hotels can gain valuable insights into the market and adjust their rates to remain competitive. However, it’s essential to note that competitor-based pricing should not be the sole determining factor. Hotels must consider their own costs, profitability goals, unique selling points, and target audience preferences to balance competitiveness and profitability. 

Occupancy-Based Pricing:   

Occupancy-based pricing is a dynamic pricing strategy where room rates are adjusted based on the occupancy levels of a hotel. This approach allows hotels to optimize revenue by aligning pricing with demand fluctuations. By leveraging the principles of supply and demand, rates can be increased during high occupancy periods to capture guests’ willingness to pay a premium. Conversely, rates can be adjusted during low occupancy periods to attract bookings and maintain occupancy levels. This approach helps hotels optimize revenue, manage inventory effectively, and stay competitive. By closely monitoring occupancy rates and implementing real-time pricing adjustments, hotels can maximize profitability. 

Seasonal Pricing:

This is an important factor to consider for setting the prices of the rooms available during holidays or any popular events time. Hotels can optimize revenue by capitalizing on high-demand periods while remaining competitive during slower seasons.  

Upselling and Cross-Selling:

Implement strategies to upsell and cross-sell room upgrades or additional services to guests. Offer options such as premium room categories, add-on services like airport transfers or dining experiences, and promotions to enhance the guest experience while increasing revenue per guest.

Rate-parity Strategy:

Rate-parity strategy refers to a pricing approach where a hotel maintains consistent room rates across all distribution channels, including its website, online travel agencies (OTAs), and other third-party platforms. Rate parity aims to ensure that the hotel offers the same rates for the same room type and dates, regardless of the booking channel. By implementing rate parity, hotels can maintain transparency, avoid potential conflicts with distribution partners, and provide a consistent pricing experience for guests across all booking channels. 

Effective pricing strategies are essential for hotels to achieve sustainable profitability and maximize revenue. By combining data-driven insights, competitor analysis, rate parity, etc., hotels can optimize revenue, enhance guest satisfaction, and establish a strong market position in the competitive hotel industry. In this scenario, Rate Shopper plays an important role for hotels. It is a powerful product that empowers hotels to stay ahead of the competition by providing valuable insights into market trends and competitor rates. By utilizing this product effectively, many of our customers optimize their pricing strategies, enhance revenue performance, and drive sustainable profitability.  

If you have any further questions or require assistance with pricing strategies for your hotel business, we encourage you to reach out to our sales experts. They are available to provide guidance and support in setting up the optimal pricing structure for your needs. You can leave your inquiries here; our team will happily address them. 

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RateTiger Again Recognised as a Premier Connectivity Partner by Booking.com

Press Release
Premier Connectivity Partner

Orlando / London, 25 July 2023

Year after year RateTiger is recognized for its excellence

Once again, RateTiger by eRevMax, a top hotel connectivity distribution provider has been recognized as a Premier Connectivity Partner by Booking.com.

Premier partners are recognized for offering the most advanced systems with the widest range of products and services, along with a high connection quality. Achieving this status highlights RateTiger’s commitment towards product, technology, connectivity, support, and new feature addition for the hotel clients. It reflects RateTiger’s commitment to delivering a first-class experience through cutting-edge technology, which positively impacts both the customers and accommodation providers.

“We are excited that we have been designated as Booking.com’s Premier Connectivity Partner for 2023. This prestigious recognition reflects our commitment towards excellence in our product features, innovation, and our relentless dedication to providing strategic solutions to our wonderful clients. We are happy to deepen our collaboration with Booking.com and look forward to creating even greater value together in the hospitality industry. This achievement serves as a testament to our talented team’s hard work and expertise, and we remain steadfast in our mission to empower hotels with cutting-edge technology that enhances guest experiences and drives business success. Together with Booking.com, we will continue to shape the future of hospitality, one seamless connection at a time.” said Caroline Faries, Strategic Account Director – RateTiger by eRevMax.

Reece Evans, Area Manager, Connectivity Partnerships at Booking.com commented: “Rate Tiger’s commitment to delivering a first-class experience that enhances the mutual accommodation partner experience year after year is consistently strong and we’re thrilled to acknowledge that once again.”

Established in 2001, eRevMax is a pioneer in hospitality technology, especially rate shopping and channel management solutions. Being one of the first channel management companies to have established 2-way XML connectivity with Booking.com, RateTiger hotel distribution solutions have been continuously delivering seamless hotel distribution.

Serving the industry for 20+ years, RateTiger by eRevMax has a keen eye on the technology and tools used by the hotel industry. They keep enhancing their products as per trends to help hotels catch maximum online booking by assisting them in room rate, inventory and property management across 400+ OTAs, including Booking.com.

For marketing related queries, contact us at marketing@erevmax.com

About Booking.com

Part of Booking Holdings Inc. (NASDAQ: BKNG), Booking.com’s mission is to make it easier for everyone to experience the world. By investing in the technology that helps take the friction out of travel, Booking.com’s marketplace seamlessly connects millions of travelers with memorable experiences every day. For more information, follow @bookingcom on social media or visit globalnews.booking.com.

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Arabian Courtyard Hotel & Spa Achieves Remarkable Growth with RateTiger Channel Manager

Press Release
Arabian Courtyard

Dubai, 13 July 2023

Recommends RateTiger Channel Manager for online distribution & revenue management

An award-winning 4-star hotel, Arabian Courtyard Hotel & Spa, situated in the heart of Dubai, United Arab Emirates, has achieved exceptional success by implementing RateTiger Channel Manager. By leveraging it, the hotel has considerably extended its reach, tapped into new source markets, and achieved remarkable growth in bookings.

Arabian Courtyard Hotel & Spa, one of Dubai’s leading luxury hotels, invites guests to experience its renowned hospitality and luxurious amenities. It provides the tourists easy access to Dubai’s iconic attractions, including the Dubai Museum, Dubai Creek, and the vibrant shopping districts. The hotel’s prime location ensures that guests can immerse themselves in the city’s rich culture and experience the true essence of Dubai.

This luxury hotel with 172 rooms, is using RateTiger Channel Manager to manage rates dynamically, inventory and restrictions across all their connected channels from one central dashboard. By seamlessly connecting the hotel with multiple global & regional OTAs, metasearch, and GDS channels, RateTiger has enabled the hotel to maximize its visibility and increase its reach to potential guests.

This 4-star property is delighted to share the remarkable increase in online bookings and revenue following the implementation of the RateTiger Channel Manager. The hotel has experienced a substantial rise in the percentage of online bookings. By utilizing 2-way XML connectivity, Arabian Courtyard Hotel & Spa has improved its visibility across various online travel agencies (OTAs) and specialized channels.

“We have been relying on RateTiger Channel Manager for several years now, and it continues to surpass our expectations. The user-friendly interface makes it incredibly easy to navigate, and the automated inventory management saves us valuable time, allowing us to focus on strategic analysis and revenue optimization. With RateTiger, we can effortlessly manage multiple channels, all within a single, intuitive platform. Also, we are incredibly grateful for the exceptional 24/7 support the RateTiger team provides. We wholeheartedly endorse RateTiger as a trusted partner for hotel channel management. The responsive and reliable customer support they offer is unmatched in the industry. We highly recommend RateTiger to other properties seeking a dependable solution backed by a team that goes above and beyond to ensure success.” – Remarked Mr Tamer Mahmoud, Front Office Manager of Arabian Courtyard Hotel & Spa.

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Increasing Direct Bookings with Metasearch – Getting Started with Trivago

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Trivago Blog

Travel planning for most people begin online. With a significant shift in traveller’s behaviour and expectations, hotels can no longer afford to take any risks when it comes to online visibility. With direct booking taking a momentum after the pandemic, metasearch has emerged as an important tool for hotels to attract guests to their website.

Table of Content:

What is Trivago?

With more than 95 million unique monthly visitors and an average of 70% viewability, Trivago is one of the largest metasearch engines for hotels. It processes 4 million search results per day comparing 900000+ hotels information and pricing. An up-to-date profile on Trivago helps with appearance and makes a hotel stand out in its own ways, capturing maximum travellers attention.

It acts as a price aggregator where hotel room prices from various travel sites are shown, when a user searches for accommodation.

trivago-com-Compare-hotel-prices-worldwide - Image 1

Trivago is one of the largest metasearch engine for hotels

Today, in our collaborative endeavor with HotelMinder, we will discuss increasing direct bookings with Trivago. 

Why do Hotels Need to be on Trivago?

75% of hoteliers using Trivago have claimed it to be a relevant marketing channel for their hotels.

  • Trivago offers a platform to make an impression to your potential guests and attract them to your brand site for direct booking.
  • You can compete with OTAs by advertising your direct rates and save on booking commissions.
  • A property with a booking engine integrated with Trivago can receive direct bookings on its website while owning guest information.

Register Your Property on Trivago for Free!

  • Get started by creating your profile on Trivago Business Studio.
  • Enter your details like name, contact number, email address to create your profile.
  • Once the profile is ready, enter the name of the property in the search box to claim your listing and you are ready to go!

trivago-Business-Studio 2

It’s very likely your property already has a listing on Trivago

The best part of listing on Trivago is that it follows the same process for registering any property: independent hotels / guest house / B&B / hotel groups or any other kind of accommodation. Plus, you can also claim and manage multiple properties from a single Trivago account.

What is Trivago Business Studio?

Trivago offers a marketing platform for independent hotels called “Business Studio”. It currently operates in 12 languages across 22 local platforms around the world.

This platform provides a number of apps to help manage profile’s content, monitor online marketing performance, track online reputation, analytics and promotions – with no charges or commissions.

The key benefits of using Trivago Business Studio are:

  • Make hotel profile management on Trivago easy and simple.
  • Increase your digital visibility by making Trivago your online marketing channel.
  • Monitor your online reputation by tracking ratings and reviews via “Guest rating app”.

According to Trivago’s research, 75% of registered hoteliers who regularly use Trivago Business Studio find Trivago to be a relevant marketing channel for their property.

How does Trivago work?

In simple terms, Trivago works on an e-commerce business model where the company provides services to the travellers via internet.

Most people picture Trivago as a platform that works with various booking sites including OTAs, hotel websites, along with hotel chains and groups comparing millions of accommodation deals to provide visitors the best match for their needs. But, it is a lot more than this.

This extensive company operates under 3 different business models:

Aggregator Business Model

Trivago works as an aggregator by collecting data of different suppliers including hotels, car rental services, flights, etc. Under this model, Trivago works by processing and fine-tuning the data collected to bring value out of it.

Categorizing the data under location, region, rates, and other criteria – Trivago presents it to the end user to assist them plan their travel.

Trivago image

Trivago recommends users the OTA with the best value


Advertiser Business Model

This model is the main source of revenue for Trivago. The company operates on the “Cost per Click” mechanism. Though listing your property on Trivago is 100% free, but simply listing it won’t help you get bookings. To get bookings, your hotel must be ranking on top few positions and this calls for running ads.

Trivago charges the hoteliers every time a user clicks on the advertisement. Displaying the best possible rate, it helps the hotel make its presence on the highest click-through-rate, increases the chance of receiving a booking and brings in revenue to both the hotels and its own channel.

Subscriber Business Model

This model of Trivago is for the Pro business users who agree to pay a subscription fee to avail the advanced features of the Business Studio. The PRO features help the hotels compete better with the likes and rankings of the property on popular Online Travel Agencies like Booking.com, Agoda, MakeMyTrip, etc.

The company claims that the hotels using the PRO package experiences 21% more clicks and 45% increased bookings in comparison to regular users.

Apart from this, Trivago also provides subscribers to showcase their listings through display advertising. The branded messages appear across trivago. Many properties use this feature to increase awareness and highlight special offers.

What is Trivago Rate Connect

With 500,000+ properties listed, Trivago’s business model provides your hotel a competitive edge over competitors with exclusive data, advanced marketing features and Rate Connect.

Trivago developed Rate Connect, an app that enables you to list your website rates directly on Trivago and pull in direct bookings via your hotel’s website.

All your hotel needs to have is a booking engine and a connectivity partner to be eligible to use this perfect blend of direct and indirect booking via Rate Connect.

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