How Can Hotels Align Pricing with Value and Market Position?

“I always look at online pricing vs. quality of the hotels perceived by the customers.

This way, in a rate/value matrix, you can clearly see if your marketing positioning makes sense. Of course, you should also keep in mind that you also need some market knowledge about the other hotels. For example: How is their product being received in the market (not only based on reviews), and why is their pricing low / high?

You need to know this before automating your pricing based on market rates – and they influence your rate then as well. Additionally, although some competitors, perhaps the hotels next-door, are a competitor based on location, they might not be a true competitor when based on product, quality, or the type of guests that visit your or their hotel.”

“I would typically suggest looking at guest feedback, and benchmarking. Internally, looking at guest satisfaction and perceived value for money, it’s good to use tools such as Reviewpro or Revinate for this.

Also, it’s useful to test a little price elasticity, i.e., implement a slight rise in price, and then monitor the impact. Externally, one can use STR and Rategain to compare pricing and performance.

Ulitmately, our pricing is typically aligned to our brand, our offering and the perceived value to the guests. It’s also about ensuring that we are maintaining the expected standards of service and delivery, especially with high repeat clientele numbers.”

“To start with, I believe your pricing analysis should always begin with your own product and positioning. Every hotel is different, and before looking outside, you need to understand how guests are perceiving your value. Your guest satisfaction scores, reviews, and direct feedback are your first indicators. Are you consistently delivering on your brand promise? I always say: aim to be better than yesterday, every single day.

Once you’re clear on your internal performance and guest perception, then bring in market and competitor insights. One of the main tools I use is STR. While it’s not always an apples-to-apples comparison, it still offers strong benchmarking through key indexes like RGI, ARI, and MPI. These help you understand if you’re gaining fair market share, if your rate is competitive, and how you’re pacing in terms of occupancy.

I also rely on Lighthouse (formerly OTA Insight), especially for more granular competitor and market demand analysis. It’s useful when managing multi-property setups, because it allows you to build different comp sets per property type, segment, or positioning. You can also analyse geo-market behaviour, lead times, flight search trends, hotel search volumes, and GDS pickup; all of which help shape a more accurate pricing and positioning strategy.

Another underrated angle is analysing your ad spend performance; particularly through metasearch platforms. Tools like Google Ads Insights, Meta IBE tracking, or even built-in comp set visibility tools in metasearch dashboards can show how your visibility and click-through rate compare to your competitors. If you’re spending more but converting less, it might reflect a pricing mismatch or unclear value proposition. For example, if you notice that your hotel has higher review scores but lower ADR than your comp set, that’s a clear opportunity to reposition or realign your rate strategy. On the other hand, if your ARI is high but RGI is flat or declining, it might be a sign that guests don’t fully see the value for the price and product improvements or better storytelling around your USPs might be needed.

At the end of the day, pricing is not just a number; it’s a reflection of how your value is perceived. Data and tools are here to support, but your strategy should be rooted in knowing your brand, your guest, and the experience you offer. Pricing well isn’t about reacting to competitors – it’s about confidently owning your space in the market.”