Economy hotels operate on thinner margins than any other segment. That makes pricing both more important and more unforgiving. Here are seven mistakes we see repeatedly — and the fixes that work. 1. Racing to the Bottom When a competitor drops their rate, the instinct is to match or undercut. But price wars in the economy segment destroy everyone's margins. Instead, differentiate on value: cleanliness, review scores, photos, and listing quality. A property with an 8.0 review score can charge $5–10 more than a 6.5 and still convert better. 2. Ignoring Length of Stay Patterns Economy hotels often have a mix of one-night transients and extended-stay guests. Pricing them the same is a mistake. Extended stays reduce turnover costs and guarantee occupancy — they deserve a different rate strategy. 3. Not Adjusting for Local Events A concert, convention, or sporting event 10 miles away can double demand for a night. If you're not tracking local events and adjusting rates accordingly, you're leaving the biggest revenue opportunities on the table. 4. Setting Rates Once and Forgetting