Setting room rates isn’t as simple as it used to be. Gone are the days when you could just check what your competitors down the street were charging and tweak your price slightly up or down.
For independent hotels, pricing can feel especially tricky. With smaller teams, tighter budgets, and limited access to the advanced tools used by the big chains, it’s easy to fall into habits that don’t serve your bottom line — or your brand.
But the good news? It doesn’t have to be that way.
Having worked with independent hotels for over a decade, I’ve seen firsthand what works, what doesn’t, and how even small shifts in strategy can lead to big results. Whether you’re running a boutique property or a family-owned hotel, these five common pricing mistakes come up time and time again — and the good news is, they’re all avoidable.
Let’s take a look.
1. Sticking to static rates
Too often, independent hotels use a “set-it-and-forget-it” pricing model. Maybe there’s a high season rate and a low season rate, and that’s where the strategy ends
While this might feel manageable, it doesn’t take into account real-time changes in demand, local events, or even how fast rooms are selling.
- Why it matters: Static pricing means missed revenue when demand spikes, and missed bookings when it drops.
- What you can do: Shift to a dynamic pricing strategy that adjusts in real time based on what’s actually happening in your market. With this approach, you can react instantly to demand shifts — just like the big brands — without having to make manual updates every day.
2. Relying only on historical data
It’s tempting to lean on past data or gut feeling when setting rates- But today’s travel landscape moves fast: booking behaviors, events, and demand patterns change constantly.
- Why it matters: Without forward-looking data, you’re always reacting instead of preparing, and that can lead to rushed decisions or unnecessary rate drops.
- What you can do: Keep an eye on future indicators like booking pace, group pickups, and local events. Platforms like Duetto Advance integrate data from Amadeus, PredictHQ, and CoStar to give you a clearer view of what’s coming — not just what’s already happened. This helps you stay ahead instead of playing catch-up.
3. Pricing the same across all channels
I get it — OTAs bring in bookings and often feel like the easiest way to compete with big brands that have massive marketing budgets and loyalty programs. But if you’re offering the same rate across all channels, you’re missing a valuable opportunity to build direct relationships — and reduce commission costs.
- Why it matters: Without a channel-specific strategy, you could be eating into your own margins without even realizing it.
- What you can do: Consider setting slightly more attractive rates or perks on your direct channel. This isn’t about undercutting OTAs, it’s about rewarding loyalty and owning the guest relationship from the start.
4. Overlooking total guest value
Room rate is just one piece of the revenue puzzle. Many independents forget to factor in other revenue streams like F&B, upgrades, or extended stays when making pricing decisions.
- Why it matters: Two guests paying the same rate might bring completely different levels of value to your hotel’s bottom line.
- What you can do: Start thinking beyond average daily rate (ADR). Consider total revenue per available room (TRevPAR) or even total revenue per guest. A more holistic view helps you price more strategically, and profitably.
5. Thinking you need a bigger team to use pricing tools
A common misconception among independent hoteliers is that revenue management systems (RMS) are only for big chains with large teams or consultants.
This often leads to sticking with manual processes like spreadsheets, which can be time-consuming, error-prone, and limit your ability to respond quickly to market shifts.
- Why it matters: Without the right tools, you're not just spending more time on pricing, you’re likely missing out on valuable revenue opportunities.
- What you can do: Duetto’s RMS was built with independent hotels in mind. It’s intuitive, flexible, and supported by an award-winning customer success team. From setup to strategy, we guide you every step of the way — so you can hit the ground running without needing to hire a full revenue team.
That's why we’ve been named Best RMS by HotelTechAwards four years in a row. You don’t need a full revenue team to see a big impact, you just need the right partner.
Your next steps toward smarter pricing
Independent hotels have more flexibility and creativity than they often realize — and with the right tools and approach, you can absolutely compete with the big names.
Avoiding these five common pricing pitfalls is a great place to start. Whether you’re just beginning to explore revenue strategy or ready to take it to the next level, remember: smart pricing isn’t about having a huge team or a massive budget. It’s about having the right insights and the confidence to act on them.
Curious how to make your pricing strategy work harder for you? We’re here to help.
