Local attractions and hotel room pricing strategy

What to consider when creating a strategy for optimal rates and guest satisfaction

What to consider when creating a strategy for optimal rates and guest satisfaction
Article by
Thomas Rijpma
Article update
April 5, 2024
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Table of Contents

Navigating the hospitality landscape requires a keen understanding of how local attractions can serve as catalysts for boosting hotel revenue and enhancing guest experiences. This guide dives into the symbiotic relationship between hotels and attractions, illustrating through examples how strategic location choices can elevate a hotel's appeal and profitability.

The Magnetic Pull of Attractions on Hotels

Attractions are not just landmarks; they're beacons that draw guests from around the globe. According to a 2020 World Tourism Organization report, being in close vicinity to attractions can lead to a 30% increase in hotel occupancy during peak seasons. For example, a hotel situated near the iconic Disneyland Park can leverage its proximity to attract families looking for the convenience of staying close to the magic, commanding rates 20% higher than hotels further afield. Or consider a hotel nestled near the historic Colosseum in Rome. The allure of this ancient wonder allows the hotel to implement a "proximity premium," elevating its average daily rate (ADR) from the city's norm of $100 to an enticing $120 or more. This strategic pricing not only capitalizes on the unparalleled convenience offered to guests but significantly bolsters the hotel's revenue per available room (RevPAR).

Seasonal Strategy and Pricing Flexibility

The seasonal appeal of attractions heavily influences hotel pricing strategies. A beachfront hotel near a popular coastal resort, for example, might reduce its premium in the off-season to attract more guests, then hike rates by 30% during summer when the sun-seekers arrive. This dynamic pricing strategy ensures the hotel remains competitive and profitable year-round. Below are a few examples of types of attractions and their effect on ADR.

Beachfront Hotels

  1. Off-Season Pricing: Average Daily Rate (ADR) drops by 20% to fill occupancy. For example, if the regular rate is $200, the off-season rate becomes $160.
  2. Peak Season Pricing: Rates increase by up to 30% during summer. Following the example, the ADR would jump to $260.
  3. Revenue Increase: This strategy can boost revenue by up to 25% during peak seasons, considering full occupancy.

Mountain Resorts

  1. Winter Season (Peak): Prices surge by 35% due to skiing and snowboarding enthusiasts. With a base rate of $150, the winter rate would be approximately $202.50.
  2. Summer (Off-Peak): A decrease of 15% to attract hikers and nature lovers, lowering the rate to $127.50.
  3. Overall Impact: This pricing flexibility can enhance winter revenue by 30%, accounting for the high demand for winter sports.

Urban Hotels Near Major Attractions

  1. Special Event Pricing: Rates can spike by 50% during major events or conventions. If the usual rate is $100, it can rise to $150.
  2. Low Season Adjustment: Reducing rates by 10-15% during quieter months can maintain an 80% occupancy rate, adjusting the rate to $85-$90.
  3. Revenue Strategy: Dynamic pricing during events can increase overall annual revenue by 20%, balancing out lower off-season earnings.

Cultural or Historic Sites Proximity

  1. Peak Visiting Times: ADR increases by 25% during peak tourist seasons. From a base rate of $120, the price goes up to $150.
  2. Off-Peak Season Rates: A reduction of 10% to encourage visits, with rates adjusting to $108.
  3. Seasonal Revenue Boost: Targeted pricing can result in a 15% rise in revenue during high-demand periods, leveraging cultural peak seasons.

Calculations and Implications

  1. Utilization of Revenue Management Software: Hotels use sophisticated algorithms to adjust prices dynamically, potentially increasing yearly revenue by up to 20% through strategic adjustments alone.
  2. Occupancy Rates vs. Pricing: A delicate balance ensures that the increased rates during peak seasons do not deter guests, aiming for a 90% occupancy rate during high demand and at least a 70% rate during low seasons.
  3. Guest Experience and Value: Providing added value through unique packages or amenities during peak pricing periods can justify higher rates and enhance guest satisfaction.

This detailed analysis underscores the importance of a nuanced approach to seasonal pricing and the strategic management of hotel rates according to the ebb and flow of tourist attractions' appeal. By carefully calibrating their pricing strategy to match demand cycles, hotels can maximize both occupancy and revenue, ensuring a competitive edge in the dynamic hospitality landscape.

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Strategic Moves to Harness Location

To fully capitalize on their prime locations, hotels can adopt several effective strategies:

Tailored Marketing Efforts

By understanding the visitor demographics to nearby attractions, hotels can craft personalized marketing campaigns. A hotel close to a renowned wine region might target oenophiles with packages that include exclusive winery tours, effectively adjusting its offerings and prices in sync with the vineyard's peak visiting times. For instance:

  1. Data-Driven Personalization: Employ data analytics to understand visitor demographics and create segmented marketing campaigns that resonate with specific interests, such as family-friendly or romantic getaway packages.
  2. Seasonal and Event-Based Packages: Develop packages that reflect the seasonal nature and events of the attraction, adjusting offerings and prices to match the demand and uniqueness of each season or event.
  3. Exclusive Experiences: Partner with local attractions for special access or unique experiences exclusive to hotel guests, enhancing the value of staying at the hotel.
  4. Local Events Alignment: Sync marketing efforts with local event calendars, promoting the hotel as the ideal base for festival-goers or event attendees, thereby tapping into the seasonal influx of visitors.
  5. Educational Content Marketing: Create engaging content that educates potential guests about the attraction, using stories, tips, and insights to build interest and anticipation.
  6. Feedback and Adaptation: Utilize guest feedback to refine and adjust marketing strategies, ensuring they align with visitor preferences and evolving trends.

By focusing on these key strategies, hotels can effectively tailor their marketing efforts to attract guests interested in nearby attractions, leveraging the appeal of these destinations to boost bookings and enhance guest experiences.

Exclusive Offers Enhance Value

Partnerships with nearby attractions can lead to exclusive guest packages, such as priority access tickets or special discounts. For instance, a hotel near the Louvre could offer a "Skip the Line" package, allowing guests to bypass the queues, thus adding significant value to their stay and justifying a higher room rate. For instance:

  1. Priority Access: Collaborate with attractions to provide hotel guests with fast-track entry or priority access tickets, minimizing wait times and enhancing the guest experience.
  2. Special Discounts: Negotiate discounts or special rates for hotel guests on admission fees, merchandise, or dining at the attraction, adding tangible value to the stay.
  3. Customized Experiences: Work with attractions to create unique experiences available only to hotel guests, such as private tours, exclusive workshops, or meet-and-greets with key personnel.
  4. Package Deals: Integrate these exclusive offers into attractively priced packages that include accommodations and additional perks, making the hotel's offerings more compelling.
  5. Marketing Collaboration: Utilize joint marketing efforts with the attractions to promote exclusive offers, leveraging the reach and appeal of both entities to attract a wider audience.
  6. Feedback-Informed Offerings: Regularly gather and analyze guest feedback on the exclusive offers to continuously refine and improve the value proposition.

By implementing these strategies, hotels can significantly enhance the value of their offerings through exclusive partnerships, making their accommodations more attractive to potential guests and justifying premium pricing.

Local Engagement for Year-Round Appeal

Hotels can mitigate the seasonality of nearby attractions by engaging with the local community and events. A hotel in New Orleans, for instance, might capitalize on the city's vibrant festival calendar, offering special Mardi Gras packages that attract visitors even during slower periods.


The strategic proximity to local attractions presents a golden opportunity for hotels to enhance their appeal, command higher rates, and improve profitability. By implementing targeted marketing strategies, forging strategic partnerships, and engaging with the local culture, hotels can not only attract a diverse guest base but also create memorable experiences that encourage repeat visits. This holistic approach to leveraging nearby attractions underscores the importance of location in the hospitality industry's competitive landscape, guiding hoteliers towards strategic decisions that maximize their property's potential.

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Frequently Asked Questions


How does proximity to attractions impact hotel pricing?

Proximity to popular attractions allows hotels to charge a "proximity premium," meaning they can set their room rates higher than those further away, thanks to the added convenience for guests. For instance, hotels near major landmarks can increase their rates by 20% or more compared to the city average.


Can attractions influence hotel occupancy rates outside peak seasons?

Yes, attractions can significantly impact occupancy rates year-round. By engaging with local events and leveraging the unique aspects of nearby attractions, hotels can attract guests even during off-peak seasons, helping to stabilize occupancy rates and revenue.


What strategies can hotels use to maximize the benefits of their location?

Hotels can maximize location benefits through targeted marketing campaigns that cater to the interests of visitors to nearby attractions, creating exclusive offers or packages in partnership with these attractions, and engaging with local events and festivals to attract a wider range of guests throughout the year.