Last-Minute Holiday Pricing Strategies Every Hotelier Should Know

With the holiday season approaching, for many hotels this period represents a decisive moment in annual performance. Some properties have been preparing for months, carefully refining rates and restrictions to maximize results. Others are only now pausing to assess their position, recognizing that the festive period is rapidly approaching.

If your property falls into the latter group, there is still time to act. With a few strategic adjustments, it remains entirely possible to capture valuable revenue and strengthen year-end performance.

Revisit Your Minimum Length of Stay Rules

Early in the booking window, minimum length of stay (LOS) restrictions help secure longer bookings and stable occupancy. But as the holidays draw closer, rigid restrictions can leave you with one-night gaps that remain unsold. Now is the time to reassess. Opening one-night stays where necessary helps fill those empty spaces and improves overall occupancy without compromising your longer bookings.

Manage Cancellations and Leverage Nonrefundable Rates Strategically

As the holiday period approaches, some early bookings will inevitably cancel. Rather than viewing cancellations as a setback, see them as an opportunity.  Each released room can be resold at a higher rate as availability tightens. Monitor cancellations in real time and prioritize reselling those rooms through your most profitable direct channels. Use updated pricing or short-stay offers to quickly refill gaps and turn potential lost revenue into additional profit.

Also, maintaining a focus on nonrefundable rate plans to secure revenue and limit cancellations. As the season progresses, flexible options can be introduced to attract spontaneous travelers. Keeping nonrefundable plans available longer helps capture last-minute guests willing to pay premium rates, boosting both occupancy and yield. 

Avoid Overpricing or Undervaluing

During high-demand seasons, it’s tempting to continuously raise rates. However, every market has its limits, especially depending on your location and concept. Overpricing can quickly lead to lost opportunities if guests perceive your property as too expensive compared to competitors. Keep your pricing dynamic and transparent, adjusting as demand shifts. The goal isn’t just higher rates, it’s finding the optimal price point where value perception meets profitability.

Drive Longer Stays Through Smart Packages

Consider promotions that reward longer stays, such as discount around the peak dates or create experiences that add value beyond accommodation. Including dining options, spa access, or local excursions to enhance both the guest experience and the hotel’s overall profitability. Thoughtful packaging is one of the most effective ways to increase average spend per guest. 

Leverage Local and Domestic Demand

Don’t overlook your local market. In many urban destinations, local guests drive significant business during the holiday period. Staycations, festive dining packages, or weekend spa getaways can all attract residents looking for a seasonal experience without the hassle of travel. Promote these offers directly through your website, social media, and email campaigns to capture more bookings. Also, focus on the returning guests by targeting them with additional value such as breakfast included or room upgrades. 

Final Thoughts

Even in the final stretch before the holidays, there’s plenty of opportunity to optimize performance. By staying flexible with length-of-stay rules, maintaining balanced pricing, crafting attractive packages, and engaging local markets, hoteliers can make a powerful impact on year-end results.

Success in the holiday season is about adaptability. With the right last-minute strategies, your property can finish the year strong and set the stage for even greater success in the year ahead.