Dynamic pricing is the practice of adjusting room rates continuously based on demand, booking pace, competitor prices and remaining inventory, instead of using fixed seasonal price lists. It is the core mechanism of modern hotel revenue management.
Prices typically move with forecasted demand. Rates rise when pickup is strong or an event compresses the market, and ease when demand softens. An RMS automates these adjustments, while smaller hotels often apply simpler rules manually.
Discipline matters more than frequency. Constant erratic changes confuse guests and erode rate integrity, and reactive last-minute discounting trains the market to wait. Well run dynamic pricing follows a forecast and documented rules, not the fear of an empty night.
← sesion.org · All categories · Advisors · Blog · Glossary