Four months before mid-August and you've already sold 80% of your rooms. Good news… or a sign the price was too low? And when bookings slow down, should you wait or drop prices straight away?
Deciding when to raise room rates (and when to hold them) is one of the most profitable choices a hotel can make. You don't need a crystal ball: you need a few signals, read regularly.
The basic principle
The right price is the one that lets you sell all the rooms you can sell, at the highest possible price, at the right time. If you sell everything too early, you could have charged more. If you reach the date with empty rooms, you were too high (or not visible enough).
Signals to raise
1. You're well ahead of last year
Compare bookings on the books for a period with what you had on the same date last year. If you're clearly ahead, demand is stronger: you can raise. See bookings down on last year: which data to compare.
2. Booking pace is accelerating
Many bookings in a few days for the same dates (high pickup) signal strong interest.
3. Competitors are filling up
If comparable hotels have no availability left or have raised prices, your room is worth more.
4. There are events or long weekends
Trade fairs, concerts, races, holidays: concentrated demand. Open high and adjust. See how to manage rates during long weekends, holidays and events.
5. Only a few rooms are left
The last rooms available in an in-demand period can be sold at a higher price.
Signals to wait (or hold)
- you're in line with last year and pace is normal;
- the period historically books close to the date (last minute);
- there's uncertainty about an event or the weather;
- competitors still have plenty of availability at similar prices.
When to consider going down
Only after a diagnosis: if you're behind last year, pace is weak, comparable competitors are lower and visibility is good. Even then, prefer targeted levers (promotions with conditions, packages, non-refundable rates) over a general cut. See does lowering prices really increase bookings?.
Practical rules for a small hotel
- Check weekly the periods for the next 3–6 months.
- Set thresholds: for example, when occupancy for a date exceeds 70% more than 30 days ahead, raise the rate one step.
- Use steps: increases of €5–10 (or a small percentage) at a time, not huge jumps.
- Protect the last rooms: keep higher prices for the last available rooms.
- Record decisions and results: next year you'll know what worked.
And the website? Update everywhere
Every price change must reach every channel through the channel manager. And check that your website remains the cheapest option, or the one with the most perks.
Frequently asked questions
Will raising prices drive away regular guests?
If increases are gradual and come with value and attention, rarely. You can also offer a reserved price to regulars who book early.
How often can prices be changed?
Technically, daily. For a small hotel, a weekly review (more often in high demand) is a good balance.
Do I need software to decide?
It can help gather data and suggest prices, but the method and thresholds remain your decisions. See fixed rate sheet or dynamic pricing: what's best for a small hotel?.
Want a pricing strategy that follows demand?
With our free marketing audit we analyse your booking pace and competitor prices and propose simple rules to raise (or hold) prices at the right time.
