In our recent webinar, Pricing with Confidence in an Unpredictable Market, we asked hoteliers how confident they felt about their pricing strategy for the 2026 summer season.
The results were revealing:
Poll: How confident do you feel about your hotel’s pricing strategy for this peak season?
- 5% – Very confident
- 47% – Somewhat confident
- 37% – Not very confident
- 11% – Not confident at all
Pricing is never easy, but this year presents an extra layer of uncertainty. Economic pressures, geopolitical tensions, and changing traveler behavior are making demand even harder to predict.
Booking Patterns Are Changing
The conflict in the Middle East has added uncertainty to travel markets, contributing to higher fuel costs, increased airfares, and changes to airline capacity in some regions.
While the impact varies by destination, hoteliers are reporting several common trends:
- Shorter booking windows
- Greater price sensitivity
- Shorter stays
The longer the conflict continues, the more likely hotels are to experience increased volatility in booking pace and cancellations.
International Travel Demand Has Softened in Some Markets
The effects aren’t limited to destinations in the Middle East. Fifty-eight percent of webinar attendees reported a decline in international visitors to their market.
Poll: Has your market been affected by a drop in international visitors this year?
- 33% – A noticeable drop
- 25% – A slight drop
- 25% – No change
- 17% – Domestic demand is up
According to STR, some demand that would typically flow to Middle Eastern sun destinations this summer may shift toward Europe and other alternative markets.
At the same time, some destinations are seeing stronger domestic and regional travel demand as travelers choose to stay closer to home.
Now for the Big Question: Should Hotels Lower Rates?
When bookings slow down, many hoteliers feel pressure to react quickly. For 28% of webinar attendees, their first instinct is to lower rates.
The challenge is that history has shown time and again that blanket discounting rarely creates demand. Instead, it erodes average rate and makes it harder to recover revenue later.
Fortunately, most attendees are taking a more measured approach. When asked what they do when booking pace falls short of expectations, 61% said they check the data before making changes.
Poll: When bookings are slower than expected, what’s your first instinct?
- 28% – Drop rates to stimulate demand
- 11% – Wait and see what happens
- 61% – Check the data before making changes
For more insights into peak season hotel revenue management, check out 5 Strategies to Maximize Revenue in Summer 2026.
Strategies for Managing Pricing in Uncertain Times
So how do you know when to lower rates, raise them, or hold steady?
During the webinar, our revenue management experts shared advice on protecting both occupancy and average rate when market conditions change quickly.
1. Track Demand Carefully
“When demand is unclear, stop watching your competitors and start watching your own booking curve,” said Andre Kaufman, Head of Global Partnerships at RoomPriceGenie.
“Pace, pick-up, and how both compare to last year and your forecast – that’s your daily dashboard. Build a daily habit around those numbers before touching your rates, and you shift from reactive pricing to intentional pricing.”
Andre’s recommendations:
- Monitor news and its impact on travel patterns
- Keep a close eye on daily pick-up, booking pace, and rate resistance
- Look for significant changes in demand
- Act quickly to seize opportunities and reduce risk
2. Price Dynamically
“It’s essential for hoteliers to be nimble and pivot quickly when demand conditions change,” said Leslie Hoy, Senior Sales & Revenue Manager at RoomPriceGenie. “It’s also important not to get emotional with your pricing decisions.”
Leslie’s recommendations:
- Stay current with demand data
- Be focused and ready to act
- Identify high-demand dates due to special events
- Be surgical – avoid blanket discounts and broad promotions
- Don’t stack multiple promotions on OTAs at the same time
3. Use Promotions Strategically
Promotions can be an effective way to stimulate demand and fill need periods, but they should always support a clear objective.
“Anxiety-driven discounting is the single biggest revenue leak this peak season – and it’s entirely self-inflicted,” Andre said. “Stop pricing from fear of an empty room. Stimulate demand – don’t subsidize it.”
Andre’s recommendations:
- Don’t discount too early – many travelers are booking later this year
- Instead of lowering rates, increase value with inclusions, flexibility, or upgrades
- Add booking conditions such as advance purchase or non-refundable rates
4. Optimize Availability Controls
Availability controls can be just as effective as pricing when it comes to maximizing revenue.
“Length-of-stay (LOS) restrictions are a popular way to drive long-stay, high-value bookings, but use them with caution,” Leslie said. “Monitor pace and demand closely and be mindful of sell-through availability. If pick-up slows significantly, loosen or remove the restrictions.”
Leslie’s recommendations:
- Apply LOS restrictions when demand is strong
- Target specific dates or room types
- Adjust shoulder-night pricing to encourage longer stays
- Watch sell-through availability
- Remove restrictions if inventory isn’t moving
5. Leverage Automation
When demand is predictable, pricing is relatively straightforward. When demand is uncertain, every decision carries more weight.
“Smart pricing is even more important when demand is soft or uncertain than when demand is high,” said Leslie. “An incorrect strategy can cost you dearly.”
She added, “In this climate, hoteliers need to be better, smarter, and faster. Automated pricing tools move even faster than humans and can help you save time, work more efficiently, stay aligned with demand, and improve revenue outcomes.”
In wrapping up, Andre and Leslie agreed that pricing confidence comes from having the right data, the right strategy, and the right tools in place. That’s true not only during periods of uncertainty but also throughout the year.
Want to learn more? Watch the full webinar, Pricing with Confidence in an Unpredictable Market.
To learn how RoomPriceGenie can help your property increase your property’s profitability, start your free trial of our automated pricing solution today!
