Confident Pricing: Blending Experience with Smart Tools
For many accommodation operators, setting nightly rates has long relied on experience, local knowledge and a practical understanding of guest demand. But as guest behaviour shifts and competition increases—especially online—the traditional approach can leave money on the table or risk undervaluing your offering. To help ease the burden, dynamic pricing software is now more accessible, offering moteliers a practical way to stay competitive without losing control. It’s not about chasing the highest rate or following a trend—it’s about using the right tools to make confident, informed decisions that reflect the true value of your property, your service, and the guest experience you offer.
An important aspect to remember is that external systems and tools are only part of the equation. The accommodation operator’s sound knowledge and understanding of the property and clientele are essential in making any of the available tools truly effective. This is where the operator can remain in control while utilizing the advances in technology to boost occupancy and profitability of their property.
Dynamic pricing and software have long been used by larger hotels. Smaller regional motels have held back, thinking that they don’t “need it” due to the difference in the market and the trust they have developed in their customer base. Standard pricing remains available in regional motels, often due to the fact that it is a familiar practise that has worked well over time. Introducing different pricing strategies to a property can be daunting, especially with the understandable concern that higher rates may discourage potential guests
In speaking with operators and from personal experience, once dynamic pricing tools or more advanced software are introduced, operators are often surprised by the rates their property can genuinely attract. It often reveals a disparity between how the operator views their property's value and how guests perceive it. Operators are underestimating the quality and value their service provides, especially in the current market. Interestingly, guests are often more willing to pay a higher rate than the operator expects—especially when the experience, presentation, and service justify it. In many cases, it's not the guest who needs convincing of the value, but the operator. When pricing reflects confidence and quality, it can actually increase the guest's perception of the property and reinforce the belief that they’ve made a good choice.
Introducing new tools and systems into a property doesn’t mean the operator is giving up control or taking shortcuts. In fact, thoughtful use of technology can support sound decision-making and free up time for more meaningful parts of the business such as improving the guest experience. As the accommodation industry continues to evolve, keeping pace with available tools isn’t about chasing trends—it’s about staying competitive, maintaining occupancy, and ensuring the property continues to perform at its full potential.
Understanding the property’s costs and expenses is an important piece to the puzzle when setting rates. Regularly reviewing the cost of turning over a guest room is essential for not only seeing the profitability available, but for also understanding the level the business is willing to go to in order to maintain occupancy in the quieter months.
Dynamic pricing software will continue to evolve. For smaller properties the cost and complexity of these tools may be out of reach for now. Traditional strategies such as length of stay discounts, advance purchase and thoughtful peak period rate setting remain powerful tools for boosting revenue and occupancy without all the bells and whistles. At the same time Property Management systems are constantly improving, making these features easy to implement for operations of all sizes and levels.
With the right blend of modern tools, operator experience and established practices, accommodation operators can confidently grow their business with control and clarity.
