Home » HOTEL NEWS » Boutique Hotels Crush It with AI-Powered Pricing, Beating Big Hotel Chains with TakeUp

Friday, March 21, 2025

Boutique hotels and bed-and-breakfasts have long struggled to compete with large hotel chains that boast deep financial resources and access to advanced revenue management tools. However, the landscape is changing. Independent properties, such as the Devonfield Inn in Lee, Massachusetts, are now using AI-driven pricing technology—once reserved for global hotel brands—to enhance revenue, optimize pricing, and compete more effectively.

Doug Bagnasco, co-owner of the Devonfield Inn, spent years managing room rates manually, relying on instinct and competitor comparisons. But he realized he was often undervaluing his property. That’s when he turned to TakeUp, an AI-powered revenue management platform designed for independent hospitality businesses. The impact was immediate: in less than a year, the inn saw a 15% increase in average room rates—without compromising occupancy or guest satisfaction.

AI Equalizes the Playing Field for Independent Inns

For years, advanced revenue management tools were only available to large hotel chains with the resources to employ teams of data scientists and analysts. TakeUp is changing that by offering boutique properties an affordable, AI-powered pricing platform that adapts to real-time demand, market trends, and booking patterns.

“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 pricing recommendations, Bagnasco no longer spends hours adjusting rates or second-guessing decisions. Instead, he collaborates with a dedicated revenue strategist from TakeUp, who works as an extension of his team, providing expert advice and ensuring pricing aligns with the inn’s business goals.

“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 Pricing Fear Factor

A major hurdle for independent innkeepers is the fear of overpricing and losing guests. Bagnasco admitted that, before using AI, he hesitated to raise rates, fearing that guests would be unwilling to pay higher prices.

“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 Challenging Market

Like many boutique properties, Devonfield Inn saw a revenue boost after the pandemic. However, while other properties experienced flat or declining numbers in recent years, Devonfield’s revenue continued to grow thanks to the implementation of AI-driven pricing.

“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 Profitability While Earning Guest Trust

One of Bagnasco’s primary concerns when adopting AI-driven pricing was ensuring guests never felt they were being overcharged—even when demand allowed for higher 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 Boutique Hotels is Smart, Not Big

Independent inns and boutique hotels are proving that success in the hospitality industry is about more than just scale—it’s about strategy. AI tools like TakeUp are enabling smaller properties to optimize revenue and stay competitive, all while avoiding the complexity and cost of traditional revenue management systems.

“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.”