Hotel Revenue Glossary · Pricing

Value-Based Pricing

A pricing approach that sets rates based on the perceived value to the guest rather than on cost-plus or competitor-matching formulas. Value-based pricing considers the unique attributes of the property, room type, view, floor level, and experience.

Why it matters: Value-based pricing captures willingness to pay that cost-plus pricing misses. A corner suite with a harbor view may cost the same to maintain as an interior room, but guests willingly pay a significant premium. Pricing to value rather than cost unlocks hidden revenue.

All glossary terms Dynamic Pricing Rack Rate ADR (Average Daily Rate)