The Challenge
Multiple high-end properties were pricing their premium room types with static markups applied year-round. Premium rates were set as a fixed dollar amount or percentage above base rooms and then left unchanged, regardless of how demand shifted across the calendar. As base room prices fluctuated seasonally, the premium tiers drifted out of alignment with the market, becoming too cheap during high season and uncompetitive during low season.
The result was inconsistent value perception across the portfolio and cannibalized upgrades, as guests had little reason to trade up when the premium price gap no longer matched the experience. Most damaging of all, the static approach left significant revenue on the table by undervaluing high-margin inventory exactly when demand for it was strongest.
The Solution
We began with a data audit built on transaction-level reservation data, then translated those insights into custom room-type pricing models deployed across the properties:
- A transaction-level data audit analyzing booking windows, sell-out patterns, discounting behavior, and room-type mix dynamics, which revealed that premium guests followed different booking patterns than standard guests
- A clear diagnosis that static dollar or percentage markups failed to reflect actual demand shifts, and that OTA-focused rate structures ignored premium buyer behavior
- Custom room-type pricing models that disentangled demand for standard versus premium room types and suggested optimal daily room-type prices based on real demand signals
- Competitor tracking focused on premium categories rather than just base BAR rates, so premium pricing reflected the right competitive set
- Ongoing decision support delivered through a Daily Rate Suggestion Report, an Opportunity Uplift Report, and a TotalPace dashboard
The Results
The properties improved ADR and upsell revenue from premium rooms, and the chronic undervaluing of high-margin inventory during peak periods was eliminated. Premium pricing now moved with demand instead of staying frozen against a shifting base.
Beyond the immediate revenue gains, the work helped reposition the pricing strategy to attract the right mix of high-value guests, restoring a coherent value gap between standard and premium tiers and reducing cannibalized upgrades.
Most importantly, the engagement created a scalable, data-driven foundation for Total Revenue Management, turning premium pricing from a static assumption into a managed system.