How to Measure Whether Your Pricing Strategy Is Working
Learn which performance indicators you should track to understand whether your pricing decisions are improving your property's revenue and occupancy. Do not judge your pricing strategy only by whether bookings increased. A property can receive more bookings while earning less overall if rates have been reduced too much.
Metrics to Track
Monitor:
- Occupancy.
- Average nightly rate.
- Total revenue.
- Booking pace.
- Revenue per available night.
- Number of enquiries.
- Cancellation rate.
- Weekday versus weekend performance.
- Peak versus low-season performance.
How to Evaluate a Price Change
When you change a rate, compare the performance of similar dates before and after the change.
For example, if you increase your weekend rate and bookings continue at a healthy pace, the increase may be working. If booking pace drops significantly, review whether the new rate is too high.
Tip
Look for patterns across multiple dates rather than judging a strategy from one booking or one week.