Hotel revenue management is a structured way to sell the right room to the right guest, through the right channel, at the right time, for the right price. It's not “charge the maximum” and it's not “copy competitors.” It's a discipline that combines data, strategy, and execution.
Where does dynamic pricing fit in?
Dynamic pricing is part of revenue management: you adjust rates based on real demand, booking pace, seasonality, and market context. The goal is not “change prices every day,” but to have clear rules for when to raise, hold steady, and stimulate demand.
1) Why revenue management matters for independent hotels
Independent hotels often compete with chains that have teams and systems. The good news: you don't need a large department to run a disciplined process. Revenue management helps you:
- improve RevPAR without relying on constant discounting;
- use peak dates smarter (protect your strongest nights);
- avoid panic moves when pickup looks temporarily weak;
- manage channels and commission costs more intentionally.
2) The building blocks: demand, price, rules, channels
Revenue management works as a system. If you only look at price, you're missing half the picture.
- Demand: seasonality, events, lead time, pickup.
- Price: BAR, room-type differentials, price steps.
- Rules: min stay, close-to-arrival, deposit and cancellation policies.
- Channels: direct, OTAs, corporate, groups.
For a fast metric foundation, start with RevPAR, ADR, and occupancy.
3) How to start: a simple weekly cadence
The biggest difference comes from consistency, not a perfect model. A practical minimum looks like this:
- Twice per week: review pickup for the next 14/30/90 days.
- Mark your “action dates” (strong or weak).
- For strong dates: raise gradually and add rules (like min stay).
- For weak dates: run small tests (price, value adds, channel changes).
- Weekly: review RevPAR/ADR/occupancy and what worked.
This is where dynamic pricing becomes manageable: you don't react to everything—you act within a routine.
4) How Sigma Revenue helps (without taking control away)
Sigma Revenue supports your process with:
- rate recommendations aligned to your strategy;
- real-time data and competitor context;
- execution automation via Autopilot.
The idea is simple: the system speeds up analysis and execution while you define the framework and rules.