RoomCloud NEWS

Optimise your performance on Booking.com with Occupancy Based Pricing

With Occupancy Based Pricing you can set prices for your rooms or apartments according to the number of guests actually sleeping in them. You can now update your rooms in Booking.com with this pricing model directly in RoomCloud dashboard!
 
Does your hotel have rooms that can be adapted for single travellers or families? Are you a property manager who manages large apartments or villas that can accommodate many people? Often you may need to propose a personalized price for each type of guest. In particular, by showing travellers prices based on actual occupancy, you are more likely to meet their preferences.
For a single guest who wishes to stay in a double room, it is good to see that the price is adapted to single-use.
 
For this reason, this pricing model helps your property appeal to more travellers. In other words, by tailoring your prices to your guests’ preferences, you can meet more travellers’ search criteria. As a consequence, this allows a bigger chance of getting bookings.
 
Booking.com made experiments and research to prove the benefits of implementing OBP. With occupancy prices, you can set a tailored rate for each of your potential sub-occupancies in a room.  As a consequence, your property will generate higher occupancy rates and average daily rate. For example, filling a quadruple room is more difficult than a double. Now, you will be able to easily sell it to less than 4 people.
 
We all know we are still living the Coronaviris nightmare, but once market demand will pick up again, with OBP rates it will be easier to capture it.  
Read more on OBP on Booking.com Partner Hub.
 

How does Occupancy Based Pricing works?

Firstly, without OBP the situation would be:
  • Four guests staying in a quadruple room costs €200
Then, with Occupancy Based Pricing it would become:
  • Four guests staying in a quadruple room costs €200
  • Three guests staying in the same room costs €170
  • Two guests staying in a quadruple room costs €150
  • One guest staying in a quadruple room costs €120

What are the benefits of Occupancy Based Pricing?

Booking.com states that the properties currently using this OBP model enjoy the following benefits:
  1. Appear in more search results. Rooms with OB pricing are visible to more travellers. That’s because your room rate will match more travellers’ searches.
  2. Increase occupancy of the more valuable rooms. Thanks to this pricing model, the biggest and most expensive rooms can be sold to more travellers. Whatsmore, it makes it easier to leave your more affordable rooms available for extra guests.
  3. Boosted revenue. Booking.com says that occupancy-based pricing can lead to an average revenue increase of 3.5%.

For any information on how to activate this pricing model for Booking.com, contact us at sales.roomcloud@tecnes.com