For many new independent property owners, pricing is both exciting and nerve-wracking. Setting your rates feels like the moment your dream turns into a real business. But it also raises a big question: How do you know when it’s time to raise your prices and when you should hold steady?
It’s a delicate balance. Price too high, and you could slow bookings. Price too low, and you’re working harder for less. The key is understanding what your rates are telling guests and how they reflect the health of your business.
Here’s how to think it through.
1. You’re Selling Out Too Fast
If you notice weekends or popular dates are booking up immediately after you release them, that’s a strong signal you’re priced below market demand.
Consistently selling out months in advance means you’re leaving money on the table — and guests likely would have paid more.
Raising rates slightly for high-demand dates won’t scare away your audience; it simply matches your pricing to the value guests already see.
2. Your Guest Experience Has Improved
Added new amenities? Upgraded your tents or cottages? Introduced local experiences or complimentary extras?
Enhancements like these justify higher rates — not just to cover costs, but because they increase perceived value.
When you invest in the guest experience, your pricing should evolve with it.
3. You’re Outperforming Competitors
It’s always helpful to stay aware of what other properties in your area are charging, but competitor pricing should never be your north star. What matters most is how your property performs in relation to demand, occupancy, and guest satisfaction.
If you’re consistently filling nights faster than others nearby — or maintaining high occupancy at your current rates — that’s a signal your market sees more value in what you offer. In that case, modest rate increases can help you capture that value without chasing anyone else’s pricing strategy.
The takeaway: competitor rates are worth noting, but your own pace, demand trends, and guest experience should lead your decisions.
4. Your Costs Have Increased
Inflation, staffing, maintenance, and utilities can all creep up over time. Even small changes can erode profitability if your rates stay flat.
Guests understand that costs change — especially when the value and experience justify it. Don’t be afraid to adjust to stay healthy as a business.
1. You’re Still Finding Your Audience
If you’re new and haven’t yet seen a full season of data, it’s smart to hold your rates steady long enough to understand your booking patterns.
Rapid changes too early can make it harder to tell what’s working — and confuse repeat guests who are just getting to know your brand.
2. You’re Seeing More traffic, Not More Bookings
When traffic is up but conversions aren’t, price may not be the issue. It could be your booking flow, photos, or policies. Before raising rates, make sure the fundamentals — website experience, listing copy, and reviews — are strong.
3. You’re Trying to Build Momentum
For new or seasonal properties, filling nights can be as valuable as maximizing rate. Sometimes, holding steady through the first few months helps generate reviews and repeat guests that fuel future pricing power.
Momentum can be more powerful than margin in your early days.
When you do raise rates, do it intentionally:
And remember: raising rates doesn’t have to be manual. Tools like TakeUp combine AI-driven insights with human oversight to help you respond to demand automatically — ensuring your pricing reflects the market, not guesswork.
The Takeaway
Pricing isn’t set-and-forget. It’s a living part of your business strategy.
Raise your rates when demand, experience, or costs justify it — and hold steady when you’re still learning or building momentum.
With the right balance of data and intuition, you can grow your revenue confidently while continuing to delight guests.
Want to see what smarter pricing could look like for your property?
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