Multi-Unit Pricing: The Math You're Probably Getting Wrong

You run a fifty-unit holiday park. Single unit is a hundred euros a night. A family books two units. You charge two hundred euros. It’s simple math. One unit plus one unit equals two units. Done.

Except that’s not how costs work, and it’s costing you money.

The hidden economics of multi-unit bookings

When a family books one unit, certain things happen. You process one booking. You send one welcome email. One guest asks about the WiFi password. One cancellation affects you. The cleaning happens once. The payment processes once.

When the same family books two units at the same park, these things don’t double. That’s the part most parks miss.

The cleaning is more efficient per unit when you’re doing two at the same time, but it’s not double the work. You still process one booking, handle one payment, and have one main point of contact for modifications.

But you’re charging as if everything doubled. That’s leaving money on the table.

Let’s say cleaning is your biggest variable cost. One unit takes two hours at twenty euros an hour, so forty euros per turnover. Two units at the same time don’t take four hours. They take maybe three, maybe a bit more. You’re not saving forty euros, but you’re not spending eighty either. You’re spending maybe sixty-five. But you’re charging as if you spent eighty.

Same with admin overhead. One contact person from the family means one email chain, one phone conversation, one set of questions. You’re not managing two separate communication threads. But if you price two units as if you’re managing two separate guests, you’re overcharging.

And then there’s the competitor angle. A family looking at two units sees your pricing and thinks “that’s full price with zero volume discount.” They shop around, find someone offering 10% off for multi-unit bookings, and book there instead. You don’t make the two hundred euros. You make zero euros.

The real cost structure

Before you change anything, you actually have to know your costs. Not guesses. Actual costs.

What’s the actual variable cost of cleaning a second unit when you’re already cleaning one? What additional labor happens beyond the first unit? What materials get used? Utilities? What overhead actually scales with units?

Your fixed costs—marketing, software, the computers at reception, your annual accounting costs—those don’t scale with one extra unit or two extra units. They just exist.

Once you map that out for your actual operation, you’ll find that the incremental cost of a second unit is significantly less than the cost of the first unit. It might be 60% of the first unit’s cost. Or 70%. Depends on your operation. But it’s not 100%.

That matters. Because if your real incremental cost for unit two is seventy euros but you’re charging one hundred, you’re not just leaving thirty euros on the table—you’re often losing the entire booking because the guest thinks they’re getting ripped off.

Pricing that makes sense

Once you know your actual costs, you can price accordingly. And pricing becomes a strategic decision instead of just adding numbers.

If a single unit is one hundred euros and the incremental cost of a second unit is sixty euros, you could charge one hundred seventy for the pair. The guest sees that as a 30% discount on the second unit. They get what they want—a volume discount. You get what you need—margin on the second unit, plus significantly higher conversion rates on multi-unit bookings.

Or you could do tiered pricing. One unit is €100. Two units are €165 (€82.50 each). Three units are €225 (€75 each). Four or more units are priced at €70 per unit. It’s transparent, it’s systematic, and it matches your actual economics.

The worst approach is what most parks do, which is whatever feels right on the day. A family books two units and you give them a discount because they look nice. Another family books two units and you don’t because they came through a platform you don’t like. You’re essentially making this up as you go, which means your staff can’t quote accurately, you can’t forecast revenue properly, and guests perceive unfairness.

Document your logic. Apply it consistently. Margin becomes predictable. Staff can quote with confidence. Guests perceive you as fair.

What consistency actually does

The moment you have a consistent rule, three things change.

Your staff knows what to charge. They’re not guessing or asking the manager. Booking a group? Here’s what it costs. Done.

You can actually forecast revenue. If you know the percentage of your bookings that are multi-unit and you know the pricing, you can project revenue accurately instead of wondering how the numbers will shake out.

Guests perceive fairness. They see the tiers, they understand why, they might even prefer you because the pricing is transparent instead of appearing arbitrary.

More bookings convert. If someone’s expecting to negotiate and you have a fixed price, they know what it is. No back and forth. “Two units, these dates—that’s this price.” They either book or they don’t, but it’s not a delay.

The implementation reality

Pull three months of multi-unit bookings. For each one, calculate: what did you charge, what was your actual cost (not guesses—actual cost), what was your margin. Most parks find they’re overpriced relative to their economics.

Then decide what to change. Do you want to drop prices and gain conversion volume? Keep prices the same and realize you’ve been leaving money on the table? Create a tiered structure that’s more sophisticated?

There’s no universally right answer. But the right answer for your operation depends on knowing your actual costs first. And almost no one does this.

If you’re leaving thirty euros per second unit on the table across even ten multi-unit bookings a month, that’s three hundred euros. Over a season that could be thousands. Do the math on your operation. It’s probably worth an afternoon.

The Underlying Principle

Multi-unit pricing follows standard cost accounting principles: marginal cost (the cost of producing one additional unit) is lower than average unit cost when fixed costs exist. In hospitality operations where substantial portions of your operational costs are fixed, this principle has real financial impact on pricing strategy and competitiveness.

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Want to learn more about reservation management? Check out our Complete Guide to Holiday Park Reservation Management for comprehensive coverage of pricing strategies, group bookings, and channel management.

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Frequently Asked Questions

Should I offer discounts for multiple unit bookings?

Yes. The incremental cost of a second unit is typically 60-70% of the first unit’s cost due to shared operational overhead like booking processing, guest communication, and payment handling. Pricing the second unit lower increases conversion rates while maintaining healthy margins.

How do I calculate the right multi-unit discount?

First, calculate your actual variable costs for cleaning, utilities, and materials per unit. Then measure the shared fixed costs (booking processing, communication, payment processing) that don’t scale linearly. The incremental cost of the second unit determines your minimum price floor. Most parks find 10-30% discounts on additional units work well.

What is marginal cost in holiday park pricing?

Marginal cost is the cost of providing one additional unit when you’re already providing the first unit. It’s lower than average cost because fixed expenses (software, reception overhead, marketing) don’t increase. In holiday parks, the marginal cost of a second unit might be 60-70% of the first unit.

Why should I charge less for the second unit?

Because your actual incremental costs are lower, and linear pricing (charging 2x for 2 units) makes you uncompetitive. Guests expect volume discounts. Without them, they book with competitors, and you make zero revenue instead of capturing margin on both units.

How much discount should I offer for group bookings?

It depends on your actual cost structure, but typical structures are: 2 units = 15-20% discount on the second unit, 3 units = 20-25% discount on additional units, 4+ units = 25-30% discount. The key is consistency and transparency so guests perceive fairness and staff can quote accurately.