Common pricing mistakes that impact your revenue
Effective revenue management is built on dynamic pricing that adapts to market conditions. However, even experienced property owners and hotel managers often make pricing mistakes that hold back revenue growth. In this article, we’ve collected the most common pricing errors—and we’ll show you how RateMate can help you avoid them.
1. Infrequent Price Updates
Many properties still update their rates weekly or even monthly, while demand can change daily—especially during peak seasons, events, or last-minute booking periods. Without timely adjustments, you risk underpricing your property or losing guests due to overpriced rooms.
2. Over-Focus on Competitors
Monitoring the competition is important, but blindly following their pricing—without considering your own demand, capacity, or brand positioning—can easily lead to price wars and reduced profitability.
3. Inflexible Price Limits
Some hoteliers set a minimum and maximum price then stick to them rigidly. Yet during high-demand events like festivals or sports games, the market may support rates far above your “ceiling.” Likewise, during low seasons, your set minimum rate might prevent bookings altogether.
4. Lack of Market Analysis and Forecasting
Past performance matters, but it’s not enough. Without analyzing future demand indicators—such as booking curves, event calendars, or competitor occupancy—you may miss your chance to optimize pricing in advance.
5. Uniform Pricing Across All Channels
Flat-rate pricing may be convenient, but it’s rarely effective. Different channels (direct bookings, OTAs, partners) involve varying commission structures, so your pricing strategy should reflect those differences.
RateMate: Your Strategic Pricing Partner
Successful revenue management isn’t just about setting prices—it’s about staying agile, data-driven, and strategically ahead of market shifts. RateMate helps you do just that by offering:
- real-time data insights so you can make the best decisions—every single day
- smart recommendations on when and how to adjust your prices
- reliable tools for market analysis and forecasting.
Avoid common pricing pitfalls, increase your revenue, and save valuable time—intelligently and automatically.
Try RateMate for free 72 hours – and see the difference yourself!