Pricing Recipe Using Booking Curves: A Step-by-Step Guide

When it comes to maximizing revenue, having a clear pricing strategy is essential. One of the most powerful tools for refining your pricing is the Booking Curve. This tool helps you see how your bookings are pacing over time and whether you need to adjust your rates to meet demand. Let’s break down a simple recipe for using Booking Curves to optimize pricing, boost occupancy, and grow RevPAR (Revenue Per Available Room).

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Step 1: Check Your Booking Curve Early

Start by reviewing your Booking Curve for the upcoming month. You can find this under the “Pacing Reports” section in Portfolio Analytics.

Scroll down to the Booking Curve section and click the box across it. Under Mode Selection, select Custom Dates and choose the appropriate month. Don’t forget to click Apply.

You’ll see 2 lines showing how many bookings you have for future dates compared to last year. The curve gives you a visual representation of your pacing:

1. Ahead of last year’s curve? You’re filling up faster than usual—consider holding rates or even increasing them to capture more revenue.
2. Behind last year’s curve? You’re not filling rooms as quickly—this is a sign to take action.
   

Step 2: Adjust Your Rates Based on ADR and Demand

Once you’ve reviewed your booking curve, look at your ADR (Average Daily Rate). Ask yourself:

1. Is the ADR higher than last year, but occupancy is lower?
2. Are you pricing yourself out of the market?
   

If occupancy is low, it may be time to slightly lower your rates to stimulate demand. Lowering rates too early or too much can hurt your revenue, but small, calculated reductions can help boost occupancy without sacrificing profitability.

​Step 3: Watch for the Booking Window

Your booking window is crucial for pricing. Most properties have a period when the bulk of bookings happen, like in the graph below - it is the last 30 days before the stay date. The key is to watch for this period in your Booking Curve:

1. If you’re still outside the main booking window, and your ADR is not significantly different or higher than the same time last year, you may have time to wait and see if bookings pick up.
2. If you’re within the booking window and occupancy is still low, that’s your signal to take more aggressive actions like decreasing your rates or putting in higher discounts.

Step 4: Track and Fine-Tune Regularly

Once you’ve adjusted your rates, it’s important to track the impact of those changes. Continue to monitor your Booking Curve to see if your occupancy is rising:

1. Is occupancy increasing after you lowered rates? That’s a good sign. If you’re close to filling up, consider raising your rates again slightly to maximize RevPAR.
2. Still behind on occupancy? Review your competitors and market trends. While pricing is one factor, you should also review other factors that affect your bookings like reviews, photos and search rankings.
   

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