How Independent Hotels Boost Profits Fast Using Pricing Optimization

In the dynamic world of independent hospitality, where charm meets challenge, a shift is unfolding.

From beachfront properties to urban boutique hotels, independents are discovering a game-changing tool that’s not just refining their pricing strategy – it’s transforming the very essence of how they run their businesses.

Meet Pricing Optimization, Lighthouse’s AI-powered solution that’s redefining how independent hotels approach revenue. By combining intelligent insights with automation, it empowers hoteliers to optimize prices without the complexity or labor. The power of this smart tool? Proven revenue growth of 21% on average and a return on investment (ROI) of more than 50x the cost.

With immediate impact and consistent returns, Pricing Optimization helps hotels unlock previously hidden revenue potential, while streamlining operations. This means you can now stay ahead of the competition with minimal effort.

Sounds too good to be true? Just keep reading – it gets even better.

Meet Pricing Optimization: Your secret revenue weapon with a 50x return on investment

Developed specifically for independent hotels, Lighthouse’s Pricing Optimization leverages artificial intelligence to deliver insights and automation previously available only to large hotel chains. This cloud-based software solution ensures even the smallest property can compete effectively, optimizing room rates and boosting revenue with precision.

The magic of the tool lies in the instant results upon implementing. Your rates are immediately optimized for the next 365 days and adjusted when needed, ensuring you can start capturing more bookings and maximizing earnings right away.

Recent analysis of our customers’ results shows an average increase in revenue of around 21% since using Pricing Optimization. And the return on investment? Users on average invest the equivalent of a 2-night stay and get a monthly return that’s more than 50 times the cost. Read more about our study on the ROI of Pricing Optimization below.

Now, let’s hear from a few hoteliers who have firsthand experience with this AI-powered solution.

Time savings: 10 hours worth of updating prices, done in seconds

For independent hotels, streamlining operations is crucial. Kristy Williams of Cairns Harbourside Hotel shares, “As an independent hotel with a lean team and no dedicated revenue lead, systems-based support is crucial for our day-to-day pricing.”

When optimizing and updating prices is done manually, it takes hours. Checking competitor prices, determining the best rates, updating all your channels… Most independent hoteliers dread this task. They put it off until late at night, when they finally find the time, or they skip it altogether, because they simply have more urgent responsibilities to worry about. And who’s to say the market hasn’t shifted again by the time you’ve updated everything?

Pricing Optimization addresses this challenge. “The biggest impact? Being able to make agile, fast rate changes,” our client Kristy reports.

The result? “A significant decrease in time spent on daily rate decisions.” Imagine the operational efficiency gains and the enhanced guest satisfaction you could achieve with that extra time.

Before Lighthouse, the HHS independent hotel consultancy team spent a significant portion of their day managing pricing for each client. Rate updates, competitor checks, and market scans were all conducted manually, making it quite challenging to balance those time-consuming tasks with proactive strategy and client engagement.

Since moving to Lighthouse, that’s changed dramatically.

“It’s cut our rate management workload by nearly half,” says Welsby. “That’s a huge time-saving. And it means we have more time to focus on other value-adding work for our clients.”

Our customers clearly notice the difference automated pricing makes, and the numbers don’t lie either. A recent study we did revealed that you save about 16 minutes per automated price update. As our users typically perform 35 price pushes per day, this equals to around 10 hours of time saved daily on revenue management, compared to if you were to do it manually.

From gut feeling to data-driven decisions

In the hotel industry, pricing often feels like a high-stakes guessing game, especially for independent hotels without access to the tools used by hotel chains.

Purnima from Rambha Palace explains, “My biggest challenge was efficiently determining fair prices based on various factors.”

Pricing Optimization turns this challenge into an opportunity. A. Mubarak from Dara Hotel states, “Now I can approach pricing scientifically.”

The outcome? “A firm understanding of market trends and the ability to develop targeted pricing strategies to meet company goals,” says A. Mubarak. No more relying solely on historical data or gut instinct.

Your crystal ball: Predicting the unpredictable

In hotel revenue management, foresight is invaluable. Dora Sarkozy, who runs an independent hotel in Budapest, was “looking for software to understand both short-term and long-term market trends.”

With Pricing Optimization, Dora found her solution. “After using the software, I can see competitor pricing and upcoming peak periods.”

The impact? “I’ve optimized our prices to a higher level,” Dora reports. In the competitive world of hospitality, this edge can significantly impact profitability and occupancy rates.

For Hemisphere Hospitality Solutions (HHS) – the strategic consultancy team behind de Russie Boutique Hotel – getting the pricing right was critical.

“We’ve always needed to find the right balance between holding value in rates and reacting to big spikes in competitor pricing,” says Welsby Mather, National Revenue Manager at HHS. “Before, it was tricky to know when market demand was genuinely organic and when it was being driven by other factors.”

Efficiency meets charm: The best of both worlds

Many independent hotels worry that embracing technology might compromise their personalized experiences. But with Pricing Optimization, you’re enhancing your expertise, not replacing it.

As Martin’s Hotels discovered, their biggest challenge was “finding time to decide on the right price, which is now possible in seconds thanks to Pricing Optimization.”

Instant ROI: See immediate revenue growth

What does return on investment (ROI) look like with Pricing Optimization? Let’s break it down.

For the average user, the cost of the tool is equivalent to selling just two room nights per month. In return, they see revenue gains that make that investment more than worthwhile.

A recent analysis of 84 independent hotels across six continents – most of them located in Europe, Asia and Oceania – shows a RevPAR increase of 21% after implementation, yielding a ROI of over 50 times the monthly subscription cost.

Take a 20-room hotel with an ADR of €100 and 80% occupancy: Pricing Optimization delivers a monthly RevPAR boost of €10,416. At a monthly price of just €201.00, that’s a 52x ROI – proven, consistent and substantial.

And it gets better. Autopilot users, who let Pricing Optimization handle rate updates fully automatically, saw ADR lifts 10 times higher than non-Autopilot users.

These figures are based on scientifically robust research by our data team. By evaluating performance of hotels in stable economies over a period of 12 months, we’ve minimized the influence of external factors like seasonality, ensuring reliable insights. That being said, each property’s ROI outcome will differ based on hotel strategy, event scheduling and even economic shifts.

While ROI is a powerful metric, it’s not the only factor to consider. ROI calculations don’t account for time savings, another critical gain that ultimately reduces costs and improves your overall success. Think about it. Less time spent on pricing means more time for guest service and general strategic planning.

That’s why looking at other aspects, like saving time and capturing otherwise missed revenue opportunities, are just as vital when evaluating the long-term value of Pricing Optimization.

All in all, the evidence is clear: Pricing Optimization delivers immediate tangible results, making it an absolute no-brainer for independent hoteliers wanting to stay competitive and boost profitability.

Proof in practice: Real hoteliers, real results

The verdict on Pricing Optimization by Lighthouse is clear and consistently positive:

Kristy Williams says that Pricing Optimization “significantly decreases my time spent on daily rate decisions.”

Purnima adds that Pricing Optimization is “a powerful tool that can revolutionize pricing strategies and help achieve business goals more efficiently.”

Dora Sarkozy finds Pricing Optimization “easy to understand and use.”

Hotel Derby puts it bluntly: “You have to use Pricing Optimization to improve your pricing management.”

Adding to these testimonials, Brian Muawad, Revenue Manager at Oceanic Enterprises, shares his experience: “With Pricing Optimization, I have control over my pricing strategy. It gives me personalized recommendations and I can send the pricing directly to my PMS. Just like that, this tool makes your life easier.”

The success stories don’t stop there. Jean-Baptiste Marx, the owner of Château de Schengen in Luxembourg shares his experience: “When I opened my hotel, Château de Schengen, in Luxembourg, I had no idea how the neighboring hotels managed their revenue management (RM). I was looking for powerful software to help me adjust my prices based on local market demand and nearby events. As soon as we started with Pricing Optimization, we immediately saw a massive increase in bookings, with prices adjusted daily based on the occupancy rate.”

Still skeptical? Here’s another client from Hemisphere Hospitality Solutions: Hotel Tempe in Sydney adopted a far more competitive pricing strategy with the help of Pricing Optimization’s smart recommendations. The result? A staggering 172% increase in occupancy – that’s a 48 percentage point jump – and double the revenue.

Lighthouse’s Pricing Optimization doesn’t just adjust your rates – it finds the ideal revenue-maximizing strategy tailored to your property.

Beyond pricing: Unveiling Pricing Optimization’s hidden talents

Pricing Optimization isn’t just about setting rates. It’s a comprehensive solution for the competitive world of independent hospitality. Let’s quickly explore some of its powerful features:

1. Competitive intelligence: Ever wish you could be a fly on the wall in your competitors’ meetings? Pricing Optimization is the next best thing, giving you a front-row seat to their pricing strategies. Stay one step ahead with real-time, actionable insights.

2. Dynamic pricing: Imagine prices that adjust themselves while you sleep. That’s the magic of Pricing Optimization’s dynamic pricing—like having a tireless revenue manager working 24/7, ensuring your rates are always in sync with market demand, competitor moves, and seasonal swings.

3. Comprehensive reporting: Buried in your data is a goldmine of insights. Pricing Optimization’s reporting tools are your treasure map. From occupancy trends to booking patterns, these reports provide a clear picture of your hotel’s performance.

4. Complexity, simplified: Designed for hoteliers, not data scientists, Pricing Optimization turns complex analytics into actionable insights, with a clean, intuitive interface.

5. Dedicated support: When you sign up for Pricing Optimization, you’re never alone. Our support team understands the unique challenges you face as an independent hotelier. So whether you’re just getting started or fine-tuning your strategy, we’re here to help you unlock the full potential of your property.

Are you ready to write your success story?

This is the dawn of a new era in independent hospitality. It’s not about cold algorithms replacing your hard-earned intuition. It’s about cutting-edge technology amplifying your expertise, giving you the power to price your unique charm just right, night after night.

Pricing Optimization: Empowering your passion with precision

In today’s evolving hospitality landscape, independent hotels need technology solutions that enhance their strengths. Pricing Optimization does just that: fueling your passion for hospitality with advanced AI technology.

Imagine having a dedicated revenue expert on your team who never sleeps, constantly analyzing market trends, adjusting rates, and ensuring your property remains competitive. That’s the power of Pricing Optimization.

Are you ready to join hoteliers like Kristy, Purnima, and Dora in mastering hotel revenue management? Take the first step today. As Pricing Optimization users have shown, the results speak for themselves. As Kristy advises, “Trial it. You have nothing to lose and so much to gain.”

Your future in revenue mastery at your property awaits. Are you ready to seize it?

Laure Cremers

Laure Cremers is a content specialist at Lighthouse with a focus on hospitality technology for independent hoteliers and B&B owners. Passionate about spotting new trends in the industry, Laure simply loves translating insights into actionable tips for hospitality professionals to boost their efficiency and profitability.

About Lighthouse

Lighthouse (formerly OTA Insight) is the leading commercial platform for the travel & hospitality industry. We transform complexity into confidence by providing actionable market insights, business intelligence, and pricing tools that maximize revenue growth. We continually innovate to deliver the best platform for hospitality professionals to price more effectively, measure performance more efficiently, and understand the market in new ways.

Trusted by over 65,000 hotels in 185 countries, Lighthouse is the only solution that provides real-time hotel and short-term rental data in a single platform. We strive to deliver the best possible experience with unmatched customer service. We consider our clients as true partners – their success is our success.

This article originally appeared on Lighthouse.