title: "Seasonal Pricing for Luxury Properties" description: "When to raise rates, when to hold, and how to structure pricing tiers that maximise revenue across the calendar." date: "2026-02-10" author: "Alveriano" category: "revenue" tags: ["pricing", "revenue", "seasonal", "yield management"] featured: false draft: false
Static pricing across the year leaves money on the table during peak periods and creates vacancy during slow months. Luxury properties that implement structured seasonal pricing consistently outperform those that don't.
The four-tier pricing model
Most luxury properties benefit from four distinct pricing tiers:
Peak season
Your highest-demand weeks. For Mediterranean villas, this is typically mid-June through August. For ski chalets, December through March.
Pricing approach: Maximum rates. Minimum stay requirements (7 nights). No discounts. This is when demand exceeds supply.
High season
The weeks immediately surrounding peak. May, early June, September for summer properties. November, April for winter properties.
Pricing approach: 80–90% of peak rates. 5-night minimum stays. Early booking discounts (5–10%) for reservations made 90+ days in advance.
Mid season
Shoulder months where demand is moderate. April, October for Mediterranean. Late October, early November for ski properties.
Pricing approach: 55–70% of peak rates. 3-night minimums. Last-minute discounts acceptable. This is where flexible pricing has the most impact on occupancy.
Low season
Months where demand is naturally low. November through March for summer properties. May through October for winter-only properties.
Pricing approach: 40–55% of peak rates. No minimum stay requirements. Package deals (stay 5, pay 4). Consider offering the property for retreats, corporate events, or long-term stays.
Setting your base rates
Start with your peak season rate and work backwards:
| Tier | Multiplier | Example (€10,000/week peak) | |------|-----------|----------------------------| | Peak | 1.0x | €10,000 | | High | 0.85x | €8,500 | | Mid | 0.65x | €6,500 | | Low | 0.45x | €4,500 |
These are starting points. Adjust based on:
- Local market data — What comparable properties charge in each season
- Your fixed costs — The minimum rate that covers operations
- Historical occupancy — If mid season is always 95% occupied, your rates are too low
Calendar pricing vs. fixed seasons
Fixed seasonal calendars are simpler to manage but miss opportunities. Consider hybrid approaches:
Event-based premiums: Local festivals, sports events, or conferences can create micro-peaks within your mid or even low season. A villa near a major wine festival should price that week at high-season rates regardless of the calendar month.
Weather-responsive pricing: If your property has a pool, an unseasonably warm October week is worth more than your standard mid-season rate.
Holiday premiums: Christmas, New Year, Easter, and school half-terms command 10–20% above their standard seasonal rate.
Common pricing mistakes
1. Anchoring too low
Property owners who start with conservative pricing find it difficult to raise rates later. Guests who paid €5,000 last year resist paying €7,000 this year. Start at the higher end and offer early-bird discounts rather than increasing base rates after the fact.
2. Ignoring your cost per vacant night
A vacant night has a real cost: mortgage, maintenance, insurance, and management fees don't pause. Knowing this number helps you make rational decisions about last-minute pricing. If your cost per night is €150, a last-minute booking at €250 is still profitable.
3. Pricing by gut instead of data
Track your booking patterns across at least two full seasons before setting rates. Which weeks book first? Which always have gaps? Let the data inform your tier boundaries.
4. Not differentiating direct vs. OTA pricing
OTAs add their own fees on top of your rates. Your direct booking price should reflect the value of booking without the platform middleman — same rate, more included value.
Revenue impact
A well-structured seasonal pricing model typically increases annual revenue by 15–25% compared to flat pricing, without increasing occupancy. The gain comes from:
- Capturing full value during peak weeks
- Reducing vacancy in shoulder seasons through competitive mid-season rates
- Generating bookings during low season that would otherwise be empty
Pricing is one of the few levers that directly impacts revenue without requiring additional investment. Getting it right takes data, discipline, and a willingness to test.