So how are a new property's rates set?
1. Market and competitor analysis
The first step is to assess comparable properties in the same area. Location, amenities, quality, capacity and the overall guest experience set the frame within which the new property will be positioned commercially.
2. Rates by period
Demand does not stay the same all year round. Rates need to adapt to seasonality, high-demand periods, local events and booking trends, with the aim of making the best possible use of the available capacity.
3. Operating costs and financial goals
Pricing has to rest on a clear picture of the operating expenses and the financial goals of the business. Occupancy alone is not enough; what also matters is the rate at which bookings are made, and the revenue that is left in the end.
4. A strategy for the first season
A new property has no booking history or guest reviews yet. Its initial pricing therefore needs to take into account its position in the market, the time left until arrival and how guests respond. The aim is not simply to offer low rates, but to build its commercial presence step by step.
5. Managing the sales channels
Being on the right platforms and managing rates, availability and booking terms properly are key parts of the commercial strategy. At the same time, the commissions and the net revenue each channel brings in need to be assessed.
6. Continuous monitoring and adjustment
The pricing strategy is not finished once bookings open. The pace of bookings, occupancy, the average daily rate and market demand all provide information for the necessary adjustments. Reviewing them in good time leads to better-founded decisions.
Pricing is an ongoing process
An effective pricing strategy is not built on one fixed rate, but on sound preparation, close attention to the market and continual assessment of the results.
Aestas Hospitality approaches revenue management based on the characteristics of each property, market conditions and the owner's goals, with the aim of improving its commercial performance.
Get in touch to discuss how the right strategy for your property can take shape.
