"Children stay free up to age 12." "Third bed −50%." "Double for single use −30%." Many hotels have applied rules like these for years — often inherited, rarely recalculated. And sometimes they turn full rooms into rooms that earn very little.
Child reductions, extra beds and single rooms are useful tools to attract families and solo travellers. But they need to be built from real costs. Here's how.
The problem: costs don't halve
When you add a guest to a room, costs rise: breakfast (or meals on half board), linen, supplies, water and energy, cleaning time. If the discount is too big, that extra bed can cost you almost as much as it earns.
Example on half board, with a meal cost of €18 per person per day:
| Guest | Price charged | Variable cost | Margin |
|---|---|---|---|
| Child 3–11 free | €0 | €15 (reduced meals) | −€15 |
| Child 3–11 −50% of €70 | €35 | €15 | +€20 |
| Teen 12+ third bed −50% | €35 | €20 | +€15 |
Indicative values. "Kids stay free" on half board can be expensive, especially if families with children are your majority.
How to set child reductions
- split by age band simply (e.g. 0–2, 3–7, 8–12, 13+);
- 0–2 years: often free in a cot, with a possible charge for meals or the cot;
- percentage discounts rather than full gratuity above a certain age;
- targeted free stays as a promotional lever in weak periods, not all year;
- different rules by period: smaller discounts in high season, bigger in low season.
Third and fourth beds
- calculate the real variable cost of the extra guest;
- consider space: a room with an extra bed is less comfortable, and reviews suffer;
- consider dedicated family rooms priced per room rather than per person;
- explain clearly what the extra bed is (sofa bed, rollaway, single bed).
Single rooms (or double for single use)
A double sold to one person has almost the same costs (cleaning, energy, linen) as a double for two, except the second breakfast. So:
- the single-use discount should reflect only the real saving (often small);
- in high season, when doubles are in demand, the discount can be minimal or zero;
- in low season, or for midweek business guests, you can be more generous.
Per person or per room?
| Model | Pros | Cons |
|---|---|---|
| Per person (typical with meal plans) | Follows meal costs | Complex calculations, discounts hard to understand |
| Per room (typical B&B) | Simple, comparable with OTAs | Risk of underpricing full occupancy |
| Mixed: room + supplement per extra person | Clear and sustainable | Needs explaining well |
Many hotels find a good balance with a per-room price for 2 people plus clear supplements for additional guests.
Communication: clarity first
Rules on children and extra beds are among the most frequent questions and most common causes of disputes. Publish a simple table on your website, in the booking engine and in quotes. See unclear prices, extras and conditions: how many enquiries are you losing?.
And check the same rules are set up correctly on the OTAs: configuration errors are common.
Frequently asked questions
Does "kids stay free" attract more families?
It can — but also very price-sensitive families. If you use it, limit it to specific periods or age bands and check the margin.
How do I compare my family price with the OTAs'?
Simulate the same booking (2 adults + 2 children with specific ages) on your booking engine and on the OTAs and compare the final total.
How often should I recalculate reductions?
At least once a year, before publishing the new season's prices, and whenever meal costs change significantly.
Want family rates that make money?
With our free marketing audit we analyse your hotel's reductions, supplements and costs and help you set clear, profitable rates for families and solo guests.
