As the saying goes, if you want something done right, do it yourself, right?
Not always.
For owners and GMs of independent hotels, manual pricing might seem like a safer, cheaper option than investing in a revenue management system (RMS).
But in reality, do-it-yourself (DIY) pricing comes with hidden costs: missed revenue opportunities, wasted time, stress, and lost bookings.
Let’s explore how automated pricing can turn those hidden costs into profits and hear directly from hotels about their experiences.
Cost #1: Lost Revenue Opportunities
Static or DIY pricing decisions are often driven by fear or guesswork. Many hoteliers underprice rooms out of fear of losing bookings, only to fill too quickly and leave money on the table. Others hold rates even when demand drops, trusting their intuition that the market will bounce back – only to end up with empty rooms and lower RevPAR.
A revenue management solution takes the emotion and guesswork out of pricing by basing decisions on hard data. The system constantly monitors market demand and booking pace, then adjusts pricing to capture the best possible rate for every booking. The result: fewer empty rooms and higher RevPAR.
Just ask Kamal Patel, hotel manager at City Center Motel in the U.S. “Since implementing RoomPriceGenie, we’ve seen up to a 20% increase in both occupancy and ADR during the week,” he said. “Now we can focus more on what we love – welcoming guests from all walks of life and creating memorable experiences for them – while being confident that our pricing is always optimized for success.” Read the full case study here.
Cost #2: Wasted Time and Team Burnout
Many small hotels don’t have the luxury of a full-time revenue manager, which means pricing falls to the GM, front office, sales & marketing, or even the owner. That can mean spending hours each week monitoring competitors and tweaking rates while neglecting other duties.
The hidden cost isn’t just time, it’s also staff morale. Manual pricing is tedious and stressful, contributing to burnout and employee turnover.
An RMS prevents wasted time and frustration by taking over the repetitive, manual tasks of monitoring the market, managing daily rates, and preparing reports. Instead of spending hours tinkering with pricing, staff can review recommendations in minutes.
Ken Debusschere, director of Thermae Palace Hotel in Belgium, can relate. “Every day, every price was a decision I had to make while juggling everything else,” he said. Since implementing RoomPriceGenie, “We’ve saved at least two hours per day and reduced our stress levels significantly, while getting 5 to 7% more revenue on peak days.” Read his full story here.
Cost #3: Falling Behind Competitors
Competitors aren’t just the hotel next door anymore. When shopping for a place to stay, travelers compare independent hotels against branded hotels, Airbnbs, and serviced apartments. As more of your competitors adopt revenue management tools and dynamic pricing practices, doing it yourself risks losing market share.
RoomPriceGenie helps you stay competitive by tracking rates for up to ten competitors and adjusting prices in real time. Instead of reacting days late to a sudden surge or drop in demand – or not reacting at all – you can keep pace with changes instantly. This helps you capture the most desirable bookings while leaving the rest for other properties.
For Ross Taylor, director of operations at Walker & Williams in the UK, automated pricing gives him peace of mind. “Before we had RoomPriceGenie, I spent my life looking through OTAs, constantly checking prices in the area and checking if it was bank holiday, or if there were any special occasions happening in our local area,” he said. “What we found with RoomPriceGenie is they do that for you.” Watch their story here.
RoomPriceGenie: Real Stories, Real Results
Manual pricing may feel safe, but in reality it’s a risky undertaking that costs hotels time, energy, and money. With RoomPriceGenie, you can stay fully in control of revenue strategy while letting your RMS do the day-to-day work.
Independent hotels using RoomPriceGenie consistently report:
- Higher RevPAR: Capturing the best possible rate for every booking.
- Time savings: More time for taking care of guests and supporting the team.
- Peace of mind: Confidence that prices are always data-driven and competitive.
Check out more RoomPriceGenie case studies to see how hotels like yours have turned DIY headaches into revenue growth.
Want to Learn More About Revenue Automation?
Here are three great places to start:
- 10 tips to Choose the Right Revenue Management System for Your Hotel
- 5 Hotel Revenue Management Myths That Could Be Costing You Money
- Myths About Revenue Management Technology
And for the latest insights, tips, and success stories in revenue management for independent hotels and multi-property groups, sign up for our newsletter: The Genie Gazette.
To learn how RoomPriceGenie can help your property increase your property’s profitability, start your free trial of our automated pricing solution today!
