Boutique hotels are revolutionizing revenue management with AI-powered pricing solutions, enabling independent inns to compete with larger chains and achieve remarkable growth and guest satisfaction

Boutique hotels and bed-and-breakfasts have always faced stiff competition from large hotel chains with vast financial resources and access to advanced revenue management systems. However, this dynamic is shifting. Independent properties, such as the Devonfield Inn in Lee, Massachusetts, are now utilizing AI-driven pricing technology that was once exclusive to major hotel brands, enabling them to enhance revenue, optimize pricing strategies, and compete on a completely new level.

Transforming Revenue Management with AI

Doug Bagnasco, co-owner of Devonfield Inn, had previously relied on manual pricing strategies, making decisions based on intuition and competitor analysis. However, he often found himself undervaluing his property. Seeking a solution, he turned to TakeUp, an AI-powered revenue management platform tailored for independent hospitality businesses. The results were impressive: within just a year, the inn’s average room rates increased by 15%, without a drop in occupancy or guest satisfaction.

AI Bridges the Gap for Smaller Properties

For many years, only large hotel chains had access to the sophisticated tools needed for effective revenue management. These tools required dedicated teams of analysts and data scientists to operate. TakeUp has changed this by providing boutique hotels and inns with an affordable, AI-based pricing platform that adjusts in real time according to market demand, trends, and booking behavior.

At first, I thought I had pricing figured out,” said Bagnasco. “I was relying on intuition and assumptions about what guests would pay. But when I started using AI-driven pricing, I saw that my rates had been lower than they should have been. The increase in revenue went straight to the bottom line.”

With TakeUp’s automated recommendations, Bagnasco no longer needs to spend hours manually adjusting prices or second-guessing decisions. Instead, he collaborates with a personal revenue strategist from TakeUp, who acts as an extension of his team, offering expert advice to ensure that pricing aligns with the inn’s goals and objectives.

“The ability to have a revenue strategist from TakeUp in my corner has been invaluable,” said Bagnasco. “They don’t just hand over an AI tool and walk away—they’re constantly monitoring performance, adjusting strategy as needed. It’s like having an in-house revenue expert without the overhead of hiring one.”

Overcoming the Fear of Overpricing

One of the major blocks for independent innkeepers is the fear of setting rates too high and losing potential guests. Bagnasco explained that before implementing AI-driven pricing, he was hesitant to increase rates, worried that guests would be unwilling to pay more.

“The biggest detractor from pricing wasn’t the guest—it was me,” Bagnasco admitted. “I was more worried about their perception of price than they were. Once I let AI take over, I realized guests were still booking, even at higher rates. In fact, when they see strong reviews and high rankings, they often expect to pay more.”

Sustained Growth in a Post-Pandemic World

Like many small properties, Devonfield Inn experienced a surge in revenue post-pandemic. While other boutique hotels struggled to maintain their numbers, Devonfield Inn’s revenue continued to rise, thanks to the AI-driven pricing system.

“For three years, our revenue remained flat despite strong demand,” said Bagnasco. “Once TakeUp got involved, we saw an increase we hadn’t seen before. That was the clearest sign that AI-driven pricing was working.”

Maintaining Guest Trust While Maximizing Profits

One of Bagnasco’s primary concerns when implementing AI-based pricing was striking a balance between profitability and guest satisfaction. He wanted to ensure that guests never felt exploited, even when demand allowed for higher room rates.

“With TakeUp, I can set boundaries on how high rates go,” he explained. “I never want guests to feel like they’re being overcharged just because we could get more. TakeUp allows us to optimize pricing while keeping it within a range that aligns with our values. It’s about fair pricing, not just maximizing revenue.”

The Future of Independent Hotels Is Smart, Not Just Big

Independent inns and boutique hotels are demonstrating that success in the hospitality industry isn’t solely about size—it’s about smart strategy. AI-driven tools like TakeUp empower smaller properties to optimize revenue and stay competitive without the need for the complex and costly systems traditionally reserved for larger hotel chains.

“For a long time, this kind of technology was out of reach for small properties,” said Bagnasco. “Now, boutique inns have the same capabilities as big brands. It’s a game-changer.”

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