La Locandiera

Tell us about your property

I opened La Locandiera exactly fifteen years ago in Florence, near the Santa Maria Novella Station. It’s a small B&B with six rooms, fully renovated just before the pandemic. Our unique feature is that we serve breakfast exclusively in the room: guests receive a menu at check-in and inform me of their preferences and breakfast time daily. This service has been especially appreciated after COVID.

Until 2019, most of our clientele was international, particularly guests from Asia, who chose us because we’re right next to the bus stop for the outlet, The Mall. Now everything has changed: we have many more Italian guests, and visitors from Northern Europe are starting to return.

Most of our bookings come from OTAs, although direct bookings have recently increased to 30-40%.

For me, pricing has always been more important than occupancy: giving the property its proper value matters more than bragging about being fully booked. Revenue is crucial. With Smartpricing, I’ve not only increased both revenue and occupancy, but I’ve also streamlined my work and eliminated the anxiety I used to feel when creating rate lists.

How did you manage rates before Smartpricing?

I’ve been in this industry for a long time. Before opening La Locandiera, I was the front office manager at a hotel near the Uffizi and was responsible for pricing. I vividly remember when, before the internet, we would call other hotels every morning to learn their occupancy rates and rates. Based on that, we created a plan for the day.

Before choosing Smartpricing, I did the same for my B&B entirely on my own, carving out time to focus exclusively on it. I researched competitors’ prices, monitored events, and created a rate list based on seasonality. Then, at least once a week, I reviewed rates and promotions, though I’ve always avoided last-minute deals and focused on long-term planning.

For me, pricing has always been more important than occupancy: assigning the right value to the property matters more than being able to boast about being fully booked. Revenue is paramount.

Why did you decide to try Smartpricing?

During the lockdown, I spent a lot of time reading and attending webinars to educate myself. I felt lost and was trying to figure out how to recover because I knew I would need to start from scratch and stay competitive with the market, competitors, and everything else.

I decided to try dynamic pricing to give a more logical structure to room sales and increase revenue. But I needed external support.

At the B&B, I handle everything myself, from check-in to breakfast. At some point, I realized I had to delegate some responsibilities—there’s only so much one person can do without making mistakes.

So, I thought about what I could manage on my own and what required time and focus. The answer was “room sales strategy.” At that point, I decided to give Smartpricing a try.

I discovered Smartpricing through a webinar on revenue management. What immediately intrigued me was that, unlike other solutions I evaluated, Smartpricing considers the big picture—not just competitors. I know that comparing my deluxe room to a competitor’s isn’t enough to determine adequate pricing.

How has your work changed with Smartpricing?

Smartpricing has changed my work in several ways.

There’s been a significant reduction in my workload in terms of time and stress. It’s clear—Smartpricing has taken away the burden of “oh no, it’s that time of year again when I have to decide rates.”

Having always managed everything myself, I initially felt some natural skepticism, stemming from being used to maintaining control. But in the end, I think you have to trust your choices. I was reassured by the ability to adjust Smartpricing to my B&B’s specific needs at any time, so I kept going, and now I’m satisfied.

What results have you achieved with Smartpricing?

Over the years, I’ve changed several PMS systems and didn’t have much historical data to feed into the algorithm. Still, I’ve seen that this year, revenue is significantly higher, and occupancy has increased.

Adding a deluxe room certainly helped, but now it’s May, and I’m already at 91% occupancy. I don’t recall that ever happening in the same month in past years.

Would you go back to managing rates with a fixed list?

I wouldn’t go back—I don’t have the time or inclination. I think dynamic pricing is both correct and smart: just as every day is different, even because of the weather, prices should reflect that.

I believe we need to educate everyone, including tourists, to accept that prices fluctuate. Sometimes people call to ask about rates, thinking in terms of the “old method.” I always explain that my prices change daily.

Things have changed, and if you want to stay afloat, you need to change with them.

Would you recommend Smartpricing to other B&Bs?

I’ve noticed, with relief, that after COVID, many more businesses use dynamic pricing. It’s a relief that there aren’t as many drastically low rates to compete against. I know the value of my property, and seeing others play the low-price game was always disheartening.

So yes, I would recommend Smartpricing for its ease of use, practicality, and ability to take the heavy workload and commitment out of creating a well-thought-out pricing strategy.

It makes me smile when someone sticks to a single rate for the entire season—it seems silly to me, even when I’m the tourist! You have to use all the tools available to increase revenue. Of course, you also need to manage that increase well.

For example, my reviews have remained positive even after raising prices, but customer needs come to light, so you have to be diligent and work hard to ensure the appropriate service level. Right now, customers are willing to spend—you just need to give them a reason.