8. Dynamic pricing
Dynamic pricing is an increasingly popular strategy as it is highly flexible. Room rates are not fixed but are adjusted based on market demand, competition, time of booking, customer behavior, and other factors that can influence booking patterns.
Prices change dynamically (hence the name) using real-time data to optimize your revenue and maximize occupancy rates, by taking into account all of the elements above, to deliver the most accurate room prices for any given time.
For example, during periods of increased demand, it’s possible to elevate your room prices to make the most of the Average Daily Rate (ADR). Conversely, in times of reduced demand, you can decrease your rates to enhance room occupancy.
It’s simply not feasible to collect, collate, analyze your data to deliver effective dynamic pricing before the data is outdated.
That’s why there are now intuitive tools, created specifically for independent hoteliers, which leverage AI-driven rate…