Room-Type Pricing: Studio vs Family Cabin, Worked Example

RevPARGenius pricing guides · Worked example series

Reviewed by Mark Joefer, Hotel Market Intelligence Researcher · 13 October 2026 · 9 min read

Most small properties set their room-type differentials once, often when the rooms were built, and then move the base rate around them for years. The gaps between room types stay fixed while everything else changes.

This worked example looks at the four cabin types of a fictional 40-cabin NZ holiday park: how the differentials are set, what the bookings show, and the signals that suggest a gap should be wider or narrower.

How are the room types priced in the worked example?

The park uses the 1BR Cabin as its base rate and fixed dollar offsets for the other three types. The offsets apply on every night, whatever the base rate is that night.

The ADRs achieved track the set offsets closely: within a dollar for each type. That is consistent with the offsets being applied as set, though an average cannot prove they held on every channel and date. It also tells you the differentials are doing exactly what they were set to do, and nothing more.

The spread from the cheapest to the most expensive cabin is wide. A 2BR Family Cabin at NZ$146 costs 47.5% more than a Studio at NZ$99. The question is whether each step between types reflects what guests value.

What do the bookings say about each cabin type?

Room nights are spread fairly evenly: each type takes between 22.8% and 26.6% of the 2,033 room nights. The Deluxe Cabin has the most at 541, and the 2BR Family Cabin the fewest at 463.

That caveat matters for every decision below. With 40 cabins at 93.2% occupancy over 90 nights, the park is close to full overall. The useful question is which type fills first on the busiest nights. If the Family cabins are fully booked weeks ahead on weekends while Studios fill in the last few days, the Family offset is likely too narrow and the Studio offset may be about right.

The Deluxe Cabin is worth a second look. It has the most room nights in the sample, 541, at an ADR of NZ$131, only NZ$13 above the 1BR. If the park has a similar number of Deluxe and 1BR cabins, guests are choosing the better cabin at least as often as the base one. That can mean the Deluxe step is small enough that many guests see it as an easy upgrade. A small, dated test of a wider Deluxe offset on busy nights would show whether that choice holds at a higher price.

Your PMS can answer this directly. Export rooms sold by type and night, add rooms available by type, and calculate occupancy for each type separately for weekdays (Sun–Thu) and weekends (Fri–Sat).

Should differentials be fixed dollars or percentages?

Fixed dollar offsets keep the same gap whatever the base rate. Percentage offsets keep the same ratio. The difference shows up when the base rate rises, which is exactly when it matters most.

With fixed offsets, raising the base rate by NZ$12 shrinks the Family cabin's relative premium from 23.7% to 21.5%. On peak nights, when family guests may be the least flexible about dates, that may not be what you want. Percentage offsets keep the step proportional and let the Family cabin rise with the base.

Some properties use a mix: percentages on peak nights, fixed dollars on ordinary nights. Whatever you choose, write it down. Our rules-based vs automated dynamic pricing guide covers how these rules are usually set up.

When should you widen or narrow the gap between room types?

Use your own occupancy by type, not intuition. These signals are worth acting on:

• The upper type fills first, again and again. If the Family or Deluxe cabin is the first to sell on most busy nights, its differential is probably too narrow. Test a wider step on nights still open.
• The base type fills last. If the 1BR or Studio is the last type left on busy nights, the gap to the next type up may be too small to make guests choose the cheaper room.
• Upgrades are being given away. If staff often move guests into a better cabin at no charge because the booked type is full, the booked type may be priced too low for how quickly it fills.
• One type sits empty on weekdays. If a type is quiet on weekdays while others fill, a narrower weekday differential may help, without touching weekends.

Widen or narrow one type at a time, on nights that are still open, and watch pickup for four weeks. Room-type tests are easier to read than base-rate tests because the other types act as a natural comparison. For more on holiday park cabins specifically, see our holiday park cabin pricing guide for weekends and room types.

What should you do this week?

1. Export room nights and available nights by type for the last 90 days and calculate occupancy per type, split weekday and weekend.
2. Compare ADR achieved with your set offsets. If they differ by more than a few dollars, check which channels or rate plans are not following the rule.
3. Find the type that fills first on your ten busiest nights.
4. Decide fixed or percentage offsets for peak nights, and write the rule down.
5. Test one wider step on the type that fills first, on nights still open, for four weeks.
6. Add room-type occupancy to your weekly review. Our weekly 20-minute hotel rate review template has a slot for it.

Frequently asked questions

How much more should a family room cost than a standard room?

There is no fixed rule. In the worked example, the 2BR Family Cabin sells at NZ$146 against NZ$118 for the 1BR, 23.7% more. Your own occupancy by type shows whether that step is too narrow, about right or too wide.

Should room-type differentials change by season?

Often, yes. Percentage differentials rise automatically with the base rate, which suits peak periods. Fixed dollar offsets shrink in relative terms when the base rate rises, so check them before busy seasons.

Why is share of room nights not the same as occupancy by type?

Because room types rarely have the same number of rooms. A type with fewer rooms can have fewer room nights and still be the fullest. Divide room nights by available nights for each type to get occupancy.

What if guests keep booking the cheapest room type?

Check whether the cheapest type fills first on busy nights. If it does, its discount may be too large. If it fills last, guests are choosing the better rooms anyway and the gap may be about right.

Do room-type differentials need to match across channels?

They should follow the same rule, so guests see consistent steps wherever they book. Compare ADR achieved by type with your set offsets. A large difference usually means a rate plan or channel is not following the rule.

Your PMS shows which room types fill first. RevPARGenius shows where nearby properties are pricing the same nights, so your base rate and its steps sit in context.

Data sources: RevPARGenius worked example (synthetic reservation sample for a fictional 40-cabin NZ holiday park, stays in the 90 nights from 14 Oct 2026; market middle column is an illustrative assumption). Analysis run October 2026. Last reviewed October 2026. RevPARGenius is a hotel market intelligence platform. It is not affiliated with any online travel agency or hotel chain.

Research methodology and disclosures: Market figures in this article are calculated by RevPARGenius from room rates publicly displayed on online travel agency (OTA) channels, on one search basis (1 night, 2 adults, 1 room, cheapest offer shown). We publish a market figure only where at least 15 properties were priced. The figures are advertised asking prices. They do not show occupancy, bookings, negotiated corporate rates or revenue achieved. Worked examples marked as synthetic use invented data. This article is general information, not pricing advice: each hotel sets its own rates independently. RevPARGenius and CloseMode are commercially affiliated platforms.