The basic concept of revenue management is to start low and raise your rate as occupancy builds. Yet, many hotels do the opposite.

The are starting high, thinking it will help them hit their ADR goal, only to end up dropping rates as the date approaches because they priced themselves too high from the start.

To me, that sends the wrong message and teaches customers to wait. I want to reward people for booking early, not punish them for trusting us with their vacation plans.

We start by offering a genuine promotion for early bookers, something that actually feels like a deal. I’m talking about $100 off per night, not $5 or $10. Real value. And when you book with us early, you’re locking in the best rate you’ll ever get. Period.

From there, the rate only goes up. I want our guests to know they’ve made a smart decision, not regret it when they check back later and see it's cheaper. That just erodes trust.

And if I need to sweeten the pot? It’s not with throwaway coupons. It’s a massage credit that almost covers the cost, not $30 toward a treatment that costs $150. I’m a consumer too—if I wouldn’t be excited about it, I’m not putting it out there.

Real value doesn’t have to be expensive for the hotel, but it has to feel meaningful to the guest.

Of course, you need flexibility. We’re not a big chain; we’re a family-owned business, which means we can move quickly. I have the freedom to make rate and inventory decisions in real time.

If I see a date pacing behind, I don’t have to wait for committee approval. I act. That ability to be dynamic is a big part of why we stay full, even when the market slows down.

Our approach works because we know our customers. And they know us. Over time they’ve learned to book early if they want the best deal. And they’ve rewarded us by doing just that.

We’ve built a loyal base that books direct—and we keep it that way with flexible nonrefundable rates that are truly attractive. Not just 10% off, but something that makes them stop and say, “That’s worth the risk.”

Sometimes people ask me how we’re full when others in our compset aren’t. I tell them it’s because we didn’t panic. We didn’t start too high and go cheap at the last minute.

We didn’t flood the market with discounts that undercut the early bookers. Instead, we played the long game. We gave people a reason to trust us and to come back.

And year after year, even with everything the world’s thrown at us, our revenue keeps growing.

Don’t chase the market—shape it.

Saul Gonzalez Ayala, Corporate Director of Revenue Management, Pueblo Bonito Golf and Resorts. The article first appeared at tambourine.com