Dynamic Pricing
Changing rates continuously as demand shifts.
Definition
Dynamic Pricing is Changing rates continuously as demand shifts. In day-to-day operations, it matters when rates are being adjusted across dates, channels, or unit types to protect revenue from demand swings.
Operationally, it matters because good strategy prevents unnecessary discounting while still keeping occupancy and booking pace on target. The work only makes sense when pricing discipline and channel consistency move together.
Use cases
Use Dynamic Pricing to change rates with a clear view of demand instead of reacting late.
Review Dynamic Pricing when the team needs to compare channel and pricing decisions against total revenue outcome.
Track Dynamic Pricing so operations can keep discounting under control while still protecting booking pace.