Hotel Revenue Glossary · Pricing

Premium Pricing

A strategy of pricing rooms above the competitive set average to position the property as the quality leader in the market. Premium pricing requires that the product, service, and brand consistently justify the rate premium to guests.

Why it matters: Premium pricing delivers higher ADR and RevPAR when executed well, but it demands that every guest touchpoint reinforces the premium perception. A poorly maintained property cannot sustain premium rates — the product must justify the price.

All glossary terms ARI (Average Rate Index) Value-Based Pricing Rack Rate