3.17.2025
Boutique hotels and bed-and-breakfasts have long faced an uphill battle competing with large hotel chains, which have deep pockets and access to sophisticated revenue management tools. But that’s changing. Independent properties like the Devonfield Inn in Lee, Massachusetts, are now leveraging AI-powered pricing technology once reserved for global hotel brands to boost revenue, optimize pricing, and compete on a whole new level.
Devonfield Inn co-owner Doug Bagnasco had spent years managing pricing manually, relying on intuition and competitor comparisons to set room rates. But after realizing that he was often undervaluing his own property, he turned to TakeUp, an AI-driven revenue management platform designed for independent hospitality businesses. The results were undeniable: in less than a year, the inn saw average room rate increases of 15%—without sacrificing occupancy or guest satisfaction.
For decades, revenue management tools were only available to large hotel chains that could afford dedicated teams of data scientists and analysts. TakeUp is changing that, providing boutique properties with an affordable, AI-powered pricing platform that reacts 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 manually adjusting rates or second-guessing pricing decisions. Instead, he works closely with a dedicated revenue strategist from TakeUp, who acts as an extension of his team, providing expert guidance 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.”
One of the biggest mental hurdles for independent innkeepers is the fear of overpricing and losing guests. Bagnasco shared that before using AI, he hesitated to push rates higher, assuming guests would resist paying more.
“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.”
Like many boutique properties, Devonfield Inn experienced a post-pandemic revenue surge. However, while others saw their numbers flatten or decline in recent years, Devonfield’s revenue continued to climb after implementing 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.”
One of Bagnasco’s biggest concerns when adopting AI-driven pricing was ensuring guests never felt taken advantage of—even if demand allowed for much 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.”
Independent inns and boutique hotels are proving that success in the hospitality industry isn’t just about scale—it’s about strategy. AI-powered tools like TakeUp are allowing smaller properties to optimize revenue and stay competitive without 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.”