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Revenue management: pricing per occupancy

March 5, 2012 2 min read


Revenue management: pricing per occupancy

Reading Time: 2 minutes

A useful revenue management practice is called in hotel lingo “pricing per occupancy”.

Pricing per occupancy is a revenue management technique used by hotels to maximize room revenue in leisure destinations that are visited by families or packaged deals. These hotels feature rooms, suites and/or apartments that can often accommodate a number of people with pull-out couches, roll-away beds and cots for babies.

Pricing per occupancy is mostly used by resort hotels, hotels and apartment hotels often in beach destinations. This revenue management tool is also used heavily by hotels that rely on package deals (air+hotel) typically operated by Thomas Cook, Thomson/LTU, TUI and other tour operators, as these typically offer prices based on per adult/per child basis.

For families pricing per occupancy is useful, as they can benefit from the comfort of staying together and the economy of not having to pay for additional rooms. For hotel managers, this revenue management technique maximizes revenue per room by allowing extra occupancy of the rooms against payment of an extra charge for additional adults and/or children.

Pricing per occupancy revenue management at GuestCentric


To create pricing per occupancy, hotels define a base rate that is yielded on a daily basis (typically the double occupancy rate) and extra charges for additional adults and children.

At GuestCentric we have made pricing per occupancy a no-brainer by allowing our hotel customers to define per room type the maximum capacity and the extra charges with one simple click. As your consumers browse through the offers on your booking engine, the pricing changes automatically to the selection. This way, your pricing always reflects on the offers.

If you want to learn more about what GuestCentric can do to improve your hotel’s digital marketing chat to one of our specialists online or sign up for our Coffee with GuestCentric webinar.
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