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The Pricing Trap: How Independent Hotels Are Breaking Free with AI

The Pricing Trap: How Independent Hotels Are Breaking Free with AI



If you’re an independent hotelier, you’ve likely played the game: tweak your rates based on the season, check out what your competitors are charging, analyze pacing, maybe throw in some gut instinct—and cross your fingers that bookings roll in.

You’re not alone.

In TakeUp’s inaugural Voice of Independent Hospitality report, nearly 200 owners and managers of inns, B&Bs, boutique hotels, and glamping properties opened up about how they’re managing rates, marketing their properties, and navigating a rapidly changing hospitality landscape. And while many are proud of the personalized guest experiences they provide (rightfully so), they’re also candid about what keeps them up at night.

The two biggest themes? Pricing strategy and AI adoption. And if you’re not thinking about both right now, you might be missing out on major revenue—and time-savings.

The Pricing Dilemma: Is Manual Still the Move?

More than half of property owners surveyed are still relying on manual pricing—adjusting rates based on the calendar, not demand signals. Another 50% are looking at what their competitors are doing and adjusting accordingly. But here’s the catch: if everyone is following each other, who’s leading?

The data makes it clear: this approach is no longer effective in today’s market. Owners told us they feel stuck between wanting to charge what their property is worth and fearing they’ll scare guests away. It’s no wonder that fear of losing bookings is the top challenge they face when it comes to pricing. That fear—combined with the hours spent each week reviewing rates—adds up to stress and missed opportunities.

But there’s good news: those who use revenue management software are significantly more satisfied with their pricing process. In fact, 94% of those using software say they’re happy with how they manage rates. That’s a big contrast to those going on instinct or spreadsheets.

At TakeUp, we’re seeing a clear shift in how independent hoteliers approach pricing. When they switch from manual methods to dynamic pricing tools that reflect their property’s unique value, they gain a better understanding of what guests are actually willing to pay. And the impact is clear: operators using revenue management software not only feel more confident—they’re also seeing stronger revenue results.

The AI Curve: Cautious Curiosity Turning to Confident Action

You might be surprised to hear this: 79% of property owners feel positive about AI in hospitality. Many are already exploring it. Others are watching closely, curious but cautious.

And sure, there are questions—about cost, control, integration. But these aren’t signs of resistance. They’re signs of thoughtful consideration. Independent hoteliers care deeply about their guests and their businesses. They’re not going to adopt technology just because it’s trendy. They want tools that make life easier, not more complicated.

That’s exactly what modern AI in hospitality is starting to deliver. At TakeUp, we believe AI isn’t here to replace human judgment—it’s here to enhance it. It can test pricing 24/7, adapt to demand, and surface insights that would take hours to uncover manually. It frees up time to focus on what really matters: delivering standout guest experiences.

What’s Next: From Reactive to Proactive

Owners told us they want to invest in marketing, property improvements, and technology this year. But here’s the unlock: better pricing, powered by smart AI, makes those investments more effective.

When you know the true value of your rooms—not just what others are charging—you can confidently market what makes your property special. You’re no longer in a race to the bottom. You’re showcasing your value, on your terms.

The Voice of Independent Hospitality report is packed with actionable insights like these—plus trends on marketing strategies, booking channels, and what’s driving loyalty among today’s travelers.

So, if you’re ready to shift from guesswork to growth, this report is your roadmap.

Download the full report to discover how your peers are pricing smarter, embracing tech, and taking back their time.

Kelly CampbellMarketing DirectorTakeUp

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