This Rate Structure Can Simplify Your Life
- rob00494
- Nov 5, 2019
- 2 min read
A simple rate structure can reduce costs and increase revenue
Many boutique hotels struggle with setting and adjusting their room rates. It’s not because they don’t care or lack effort—it’s usually because they lack a clear, consistent rate structure, also known as rate architecture.
That term might sound complicated, but in practice, it’s quite simple—and the benefits are huge.
Why Disorganized Rates Hurt Your Business
We've worked with boutique hotels across dozens of countries and markets, and we consistently see the same issues pop up when rate structure is missing or unclear:
1. Lost Revenue Opportunities
Without a solid system in place, hotels often underprice rooms or fail to raise rates during high-demand periods. In the most extreme cases, we’ve seen hotels generating 50% less revenue than they should be, simply due to poor rate management.
2. Wasted Staff Hours
Some properties spend 10, 20, even 30 hours a week trying to keep rates in line across different platforms. That’s hundreds of hours per year—time that could be better spent elsewhere. And worse, all that effort often results in less control, not more.
3. Guest Confusion
Inconsistent pricing across channels can confuse potential guests and if you teach them that they can find lower rates for your property in other channels, then they might keep shopping and even pick a different hotel.
4. OTA Visibility
And last, but not least, is OTA visibility. Although some global regions have prevented OTAs from enforcing parity, it still hurts an OTA's revenue when they are being undercut in other channels, so they will still lower visibility for a property that consistently posts lower rates in other channels.
The Hotel Rate Strategy That Cuts Costs and Grows Revenue
The right hotel rate strategy—built on a simple and consistent rate architecture—can transform your operations. It puts you back in control and creates a system where:
Base rates are updated with minimal effort
Discounts and promotions adjust automatically
Your staff spends less time updating rates manually
Guests get clearer pricing and a better booking experience
After supporting hundreds of boutique hotels—from 10-room beach lodges to urban design hotels—we’ve seen firsthand how this approach increases revenue and improves efficiency.
🎥 Watch the video below: Cut Costs and Increase Revenue with This Hotel Rate Strategy to learn exactly how this works in real hotels.
Don’t let a messy rate setup cost you time and money. A few small changes can lead to major results.
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