In our next few articles, we will be talking about hotel pricing strategies within your revenue management plan. We will discuss essential topics for revenue managers such as dynamic pricing, GOPPAR, differential pricing and price positioning strategies. The first question we tackle is how many prices does your hotel need to offer…

The elements that hotel pricing strategies exist of are:


That of course sounds very interesting. But let’s take a step back and look at the people who have to pay these prices. We call them consumers or rather guests. The striking thing about this group of clients is that they are different. They come from different countries, travel for different reasons and have different budgets.

Yield and revenue management in hotels can only succeed when you can target different types of clients at any time with different prices. We have tried to visualize it below;


If you don’t have prices available for the potential clients with a higher budget range you will lose them to other hotels. Or if your prices are too low for what people are willing to pay, you will lose profit margin if they book you. Of course, if your prices are too high for travellers with a lower budget you will lose out on bookings. Quite tricky all in all.

So how can I make the demand and supply of prices and budget match? Simple, you need to differentiate your product offer.


This basically means we are introducing a price segmentation or discrimination strategy for our hotels.

Also Read:

Latest blog post on Hotel pricing strategies.