When to Revisit Room Type Pricing—and How Seasonality Comes Into Play
Not all rooms are created equal—and their pricing shouldn’t be either. Whether you’re working with multiple room types across a boutique inn or a handful of upgraded suites in a small hotel, understanding how (and when) to adjust the price spread between room types is essential to maximizing revenue.
Let’s break down when to revisit your room type differentials, and how seasonality should shape your strategy.
1. Watch for Compression Periods
When demand is high—think peak summer, holiday weekends, or major events—guests are more willing to upgrade. That’s the time to widen the gap between your base room and your premium categories. If your king suite is only $20 more than a standard queen during a sold-out weekend, you’re leaving money on the table.
2. Slow Periods Call for Narrower Gaps
During low-demand periods, consider reducing the price difference between room types to encourage upselling. Offering better rooms at a smaller premium can improve guest satisfaction, increase perceived value, and maintain ADR without having to drop your base rate too low.
3. Use Historical Booking Patterns
Look at past seasons: when do your higher-category rooms tend to book? Do they fill up early or sit empty until the last minute? This data can help you anticipate demand and price each room type accordingly. You may find your suites fly off the shelves in the fall but lag behind in spring—adjust your spread to reflect that.
4. Check What Guests Are Actually Choosing
If your deluxe king is barely selling, but your standard doubles are flying, it may be time to revisit the price difference—or rethink the perceived value. Are you charging too much? Is the listing copy strong enough? Is there a photo gap?
5. Seasonality Isn’t Just About Dates
It’s also about behavior. In summer, leisure travelers may want larger rooms for families or longer stays. In winter, solo guests may be fine with a snug queen. Let guest intent shape your spread.
6. Package Wisely by Room Type
Seasonal packages or value-adds like champagne on arrival, breakfast credits, or spa perks can help move premium inventory during shoulder seasons. Don’t just drop rates—build value.
The Takeaway
Your room type pricing isn’t a set-it-and-forget-it situation. With a little attention to seasonality, demand, and booking behavior, you can make smart, strategic moves that drive both upgrades and revenue. A few small shifts in your pricing logic could have a big impact on your bottom line.