Occupancy based pricing explained
Below will outline what occupancy based pricing is:
Occupancy based pricing gives you more control over how you price rooms for different guest counts on Booking.com and Expedia.
Instead of relying on flat surcharges for additional guests, you can set specific rates for three, four, or more people that better reflect your room value and market positioning.
This optional feature helps you optimize revenue for larger parties while supporting your pricing strategy.
If you don't have access to chain manager in the CRS, contact the CRS support team for setup assistance [email protected]
Before enabling occupancy based pricing, confirm these details are identical in both your CRS and the OTA extranets:
Adult occupancy totals for each room type.
Child occupancy totals for each room type.
⚠️Warning: Mismatched occupancy settings will prevent proper rate distribution to these channels.
Enable occupancy based pricing
Below will outline how occupancy based pricing is enabled:
Go to Chain Manager.
Click External Booking Channels.
Choose Booking.com or Expedia from the dropdown menu.
Click on your hotel name to open the setup tab.
Check the Occupancy Based Pricing checkbox.
Click Save.
Now the occupancy based pricing is set up this is how it will work:
Standard approach without occupancy based pricing:
Your CRS sends rates for up to 4 guests using the 2-person rate as the baseline. Booking.com and Expedia add flat surcharges for additional guests beyond 2 people using extra person charges configured in their extranets and are not controlled via the CRS.
Strategic approach with occupancy based pricing enabled:
Your CRS sends specific rates you've configured for different guest counts, giving you control over pricing for 3, 4, or more people.
If your CRS has rates set for a 4th person, the 5th guest rate becomes: 4th person rate + extra person charge.
The system continues this pattern until it reaches your room's maximum adult occupancy.
If no extra person charge is configured in the CRS, the system uses your highest configured occupancy rate for all remaining guests up to your room's maximum adult occupancy.
After enabling occupancy based pricing, the CRS will start sending these amounts to the extranets as configured for each rate code. This allows you to price rooms more strategically based on occupancy rather than relying on flat surcharges for additional guests.