What is Per Person Sharing?

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How it works

To implement a Per Person Sharing model, a host establishes a specific price that each guest will pay per night. When a guest makes a reservation, the total cost is calculated by multiplying this PPS rate by the number of occupants and the number of nights.

For example, a room with a PPS rate of $50 will cost $100 per night for two guests. Vacation rental software allows property managers to set up these occupancy-based pricing rules.

Systems like Lodgify can then automatically apply the correct pricing based on the guest count provided during the booking process.

Why it matters

This pricing model allows for flexible and competitive rate setting. It can make a property more appealing to solo travelers or small groups by offering a lower entry price point compared to a fixed room rate.

For hosts, it ensures that revenue scales directly with the number of guests, accurately reflecting the increased use of utilities, amenities, and cleaning resources. This granularity can help maximize revenue and optimize occupancy across different traveler types.

Examples

• A hostel in Dublin advertises beds in an 8-person mixed dormitory for €25 per person sharing. A solo traveler pays €25 for the night, while a group of four pays €100.
• A bed & breakfast in a wine region prices its queen room at $90 for a single guest or $70 per person sharing for two guests, resulting in a total of $140 for a couple.
• The owner of a large ski chalet sets a base rate for the first 6 guests and then implements a per person sharing rate for each additional guest up to the maximum capacity of 12.
• A boutique hotel uses a PPS model for its family suite to differentiate pricing, charging less for a family of three than for a family of five using the same space.