Occupancy Based Pricing

Modified on Mon, 21 Jul at 11:41 AM

RoomRaccoon uses occupancy-based pricing (OBP) which means that each specific rate is tailored and adjusted according to the number of guests sleeping in them. In most cases you would need to propose a personalised price for each type of guest, by showing travellers prices based on actual occupancy, you are more likely to meet their preferences.


How does OBP work

Without Occupancy Based Pricing the situation would be 

  • Four guests staying in a quadruple room at €350.


With Occupancy-Based Pricing, you can configure rates in the following way

  • Four guests staying in a quadruple room at €350.

  • Three guests staying in the same room at €300.

  • Two guests staying in the same room at €250.

  • One guest stayed in the same room for €200.


Occupancy Based Pricing for OTA’s 

RoomRaccoon uses an occupancy-based pricing model. This means that for each rate type you offer (such as Room Only, Bed & Breakfast, Half Board, etc.), you need to set a separate rate for each occupancy that the room category can accommodate (1 guest, 2 guests, 3 guests, etc.).

This setup enables:

  • Reservations to be made based on the number of guests.

  • Greater visibility of your property on distribution channels, as your listing will appear in more relevant search results.

Example:
 If you only offer the maximum occupancy rate (e.g. 2 guests including breakfast) and a guest searches for accommodation for 1 person, your listing won’t appear in their search results. That’s because the system filters availability based on the number of guests specified by the user.

By configuring rates for each possible occupancy, you ensure your property is visible to all potential guests, regardless of their party size.

Important: We advise you to use derived rates when setting up your occupancy-based pricing. 


Benefits of Occupancy-Based Pricing

  • Appear in more search results: These rooms with OBP are visible to more travellers as such the room rate will match more travel searches.

  • Increase occupancy of high-value rooms: With this pricing model the biggest and most expensive rooms can be sold to more travellers and allows you to accommodate extra guests in more affordable rooms.

  • Boosted Revenue: According to Booking.com, occupancy-based Pricing can lead to an average revenue increase of 3.5%.

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