Master VR


Pricing a tourist accommodation is a crucial decision that can affect the profitability and competitiveness of the business. To establish an appropriate price, it is important to consider a number of key factors:


We are going to list some important ones, in addition to these, there is always the corrective factor that marks the market, in this sense, there are multiple software and technologies that could help you to refine the competitiveness.

That said, the important thing when setting the price is to always take into account costs, profitability and competition in the market.

Operating costs:

Calculate operating costs, which include expenses such as building maintenance, utilities, staff salaries, insurance, and taxes. These costs must be covered before the business will generate profits.


The location of the lodging has a significant impact on the price. Establishments located in high-traffic tourist areas are usually able to charge higher rates than those in less attractive locations.

Type of accommodation:

The type of accommodation also influences the price. A luxury property with upscale amenities may charge higher rates than a budget property with basic amenities.


Analyzing local competition is essential. Knowing the prices offered by other similar accommodations in the same area helps determine what the competitive price range is.

But it is not a definitive factor, since every vacation rental home is unique and what the client is looking for in our properties is precisely that uniqueness for which he is willing to pay.


Season and demand:

High and low season, as well as local events or festivals, can influence demand and therefore prices. At times of high demand, such as vacations or special events, rates may be increased.

Seasonality and demand are factors that could increase the profit margin but….. up to how much? 10%, 20%, 30%? An exaggerated increase in profit could pay off in the short term but burn the place for the future. We must always keep our feet on the ground and offer really competitive and fair prices.

Market segment:

Defining the target market is essential. Prices should be aligned with the expectations and purchasing power of the target customers. 

The cost of accommodation may be significantly higher where there is less supply. Markets are different in the mountains, on the beach, in the city or in a ski resort.

Perception of value:

Customers evaluate the value they get for the price they pay. Offering additional services, amenities or special promotions may justify higher rates. 

Sometimes, an additional service, even free of charge, increases the value of the reservation because the interesting thing is the user’s experience, not whether he pays a little more or less for his reservation.

Length of stay:

Often, accommodations offer lower rates for longer stays or special packages that include multiple nights.

The longer the booking duration, the lower the operating costs, and if we pass these costs on to the price downwards, we will also achieve longer bookings and customers, which will undoubtedly be more profitable for everyone.

Pricing strategy:

Deciding whether to pursue a premium pricing strategy (charge more for a high quality product) or a low pricing strategy (compete on price) is important for pricing.

If your customers see you cheap it’s bad, if they see you expensive too, the strategy is that there must be a correspondence between value and price, the customer’s perception is very important, ignoring it will bring consequences.

Commissions and fees:

If the accommodation works with online travel agencies or booking sites, it is important to consider the commissions and fees to be paid for each booking.

This is a very important point, the relationship with the OTAS and how they can end up deciding your prices, is a threat factor that must be managed with skill and common sense.

Cancellation and refund policy:

Defining a clear cancellation and refund policy can influence customer perception of value and can impact booking decisions.

In addition to being clear, it must be fair. Cancellation costs should not be an all-or-nothing proposition either. You can include bonus options or get back what you paid in exchange for a cancellation fee. In any case, the more transparent and simple the better.

Marketing strategy:

Promotion and marketing can influence customer perception of the value of the accommodation, which in turn can justify higher prices.

Marketing = Sales, sales is also looking for customer satisfaction, so sometimes, you have to communicate and give value to the things we do, explain them and engage the customer in the company’s mission. A good strategy of communication and value enhancement of our products and services will increase the perception of added value. This allows us to play with prices, generally raising them thanks to the value provided by our services.