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.
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.
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.
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.
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.
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.
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.
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.