Test the revenue response
A higher rate helps only if enough guests still book. Change the assumptions to see where the recommendation pays.
Price changes only work if enough guests still book
The model covers the 5 repriced nights in the fortnight. Hold, closed and conditional nights are excluded. Revenue totals below relate to those repriced nights; they are not total hotel revenue for the window.
Occupancy and elasticity are assumptions, not measured. Room count is disputed between sources (121 vs 157). Use the inputs below to substitute actual figures. Where Booking.com shows rooms left, the reprice applies only to that allotment.
Set the assumptions
Results update as inputs changeResult across the 5 repriced nights
121 rooms · 72% occupancy · elasticity -0.9At these inputs
+$1,143
Estimated change across the repriced nights.
If guests do not react (ceiling)
+$18,208
The same rooms sold at the recommended rates.
Break-even elasticity
-0.977
The negative elasticity where the estimated revenue change is zero, holding these occupancy inputs fixed.
The model applies its occupancy floor and cap to recommended rates. Very low or high nightly inputs can therefore create a change beyond the price response alone.
| Night | Rooms sold as-is | Rooms sold recommended | Revenue as-is | Revenue recommended | Change |
|---|---|---|---|---|---|
| 23 Sep | 6.0 | 5.5 | $1,764 | $1,771 | +$7 |
| 26 Sep | 87.1 | 67.9 | $20,386 | $20,702 | +$316 |
| 28 Sep | 87.1 | 74.0 | $14,898 | $15,177 | +$279 |
| 29 Sep | 87.1 | 72.4 | $18,469 | $18,758 | +$289 |
| 30 Sep | 87.1 | 77.0 | $18,469 | $18,722 | +$252 |
| Total, 5 repriced nights | 354.5 | 296.9 | $73,986 | $75,130 | +$1,143 |
Room figures are expected room-nights and may be fractional. Displayed amounts are rounded; totals are calculated before rounding. The model estimates room revenue, not profit, and does not model the separate effect of changing cancellation terms.
The demand response is measured against the market median: occupancy moves with the change in Rex’s rate relative to the median, so the effective price elasticity on a night is the input elasticity multiplied by Rex’s starting position (rate ÷ median). A night already above the median (21 Sep, 1.17× the median; effective −1.05 at the −0.9 input) loses revenue on a raise, while the far-window nights start near 0.9× the median (effective about −0.8) and gain. Break-even elasticity is quoted for the five repriced nights together.
Nights held after modelling: 21 Sep — raising $226 to the $239 target at 121 rooms, 72% occupancy and elasticity -0.9 changes revenue by −$86.
How much does price sensitivity change the answer?
The curve holds rooms and occupancy fixed. A more negative elasticity means more guests leave when the rate rises.
Precomputed uncertainty range
Fixed source scenariosMonte Carlo means repeated simulated scenarios with varied assumptions. These supplied ranges remain fixed when the interactive inputs change. They are scenarios, not measured probabilities from booking outcomes.
P10 is the outcome with 10% of simulated outcomes below it; P50 is the outcome with 50% of simulated outcomes below it; P90 is the outcome with 90% of simulated outcomes below it.
| Room count | P10 change | P50 change | P90 change | Chance of a gain |
|---|---|---|---|---|
| 121 rooms | −$3,959 | +$1,162 | +$6,757 | 60.8% |
| 157 rooms | −$5,185 | +$1,543 | +$8,773 | 60.7% |
The annual case is pricing consistency
The annual gain comes from consistency: removing erratic price swings across the year, not from any single night. This annual model is a separate supplied scenario, not an extrapolation of the fortnight change. The fortnight is a test of price sensitivity; actual rooms sold determine whether the annual opportunity is credible.
121 rooms
| Scenario | P10 | P50 | P90 |
|---|---|---|---|
| No fix | $6,705,467 | $7,289,482 | $7,865,093 |
| Consistent pricing | $6,833,311 | $7,492,268 | $8,170,697 |
| Annual gain | −$8,043 | +$206,252 | +$438,257 |
Modelled chance of an annual gain: 89.4%.
157 rooms
| Scenario | P10 | P50 | P90 |
|---|---|---|---|
| No fix | $8,697,073 | $9,438,928 | $10,183,922 |
| Consistent pricing | $8,863,510 | $9,694,498 | $10,565,824 |
| Annual gain | −$12,996 | +$264,339 | +$554,576 |
Modelled chance of an annual gain: 89.2%.
The source reports the annual gain distribution separately. It cannot be recovered by subtracting the same-labelled percentiles of the revenue distributions. The underlying annual sampling process is not included in the source.
The model, stated exactly
For each repriced night, current and recommended prices are expressed relative to that night’s competitive-set median. Occupancy is entered as a share; ε is the selected price elasticity.
r0 = current / med
r1 = recommended / med
roomsA = rooms × occ
occB = min(0.97, max(0.05, occ × exp(ε × (r1 − r0))))
revA = roomsA × current
revB = rooms × occB × recommended
delta = revB − revAexp is the exponential function. The recommended occupancy is bounded between 5% and 97%. The ceiling holds occupancy unchanged; break-even is solved numerically across negative elasticity values. Read the method and limitations.