The Power of Dynamic Pricing Engine in managing Hotel Booking Rates
What is hotel dynamic pricing?
Dynamic pricing is a pricing strategy for hotels that involves changing room rates on the daily, weekly or monthly basis, depending upon the real-time market conditions.Considering the demand, dynamic pricing allows prices to fluctuate regularly so the hotel can maximise revenue. For example, in the morning you may have lower rates looking at the occupancy of your rooms and by evening to see that maximum rooms are getting booked now naturally, you want to increase rates at this point across all the OTA Platforms.
Why is dynamic pricing important for a hotel?
Dynamic pricing can be an important tool for a hotel that’s looking to optimise bookings and maximise profit.By analysing market conditions, hotels can plan in a way that their rooms are not unoccupied and also at the same time if the time of demand is more the pricing of the rooms is set to the maximum potential to gain the maximum profits out of it.
Here are some of the advantages of using dynamic pricing at your hotel:
- Boost occupancy – When the bookings are less, you can drop your pricing to increase the chances of a booking.
- Maximise profit – When the bookings are more you can set to increase the price for the remaining rooms.
- Strengthen Demand Forecasting– Compare your previous data with the current market conditions to get an idea of what you can set your rates at in the future.
- Outperform Competitors– Acting on market fluctuations will allow you to stay ahead of your competitors, who may not be as switched on.
- Gain Insights into Traveler Preferences– See how customers respond to changing market conditions and prices to get insight into how to better target them in the future.
6 best ways to use dynamic hotel pricing
Optimising Occupancy Rates: Keeping a track on your hotel occupancy and Adjusting your prices based on your own occupancy rate in a day or week can help you get the best price advantage. You can sell the first few rooms at a lower price and the remaining at a higher price.
How to avoid this manual process? - Many Hotel softwares like RunHotel offer an automated and dedicated Dynamic pricing engine that continuously adjusts your booking prices based on the rules you set.
Get in touch with RunHotel
Real-Time Pricing Strategies for Unpredictable Markets: On some days, there might be a high number of flight cancellations due to weather or other factors. Take note of what’s happening around you in real-time so you can quickly see opportunities to get extra bookings by adjusting your price module and enjoy maximum profits which your competitors might miss.
With RunHotel you can adjust prices for some selected dates in just a few clicks. Example we have shown the changes on the dates 10 to 13.
Get in touch with RunHotel or write to us on [email protected]
Creating ‘peaks’ outside of peak season: Events in your city like the Diljit Dosanjh concert or exhibition near your hotel's allow you to forecast the number of booking your hotel can expect in that duration of the year and the price point could be decided accordingly to get the maximum profits at this time, instead of relying solely on your traditional peak season to cash this can be a great opportunity too. This can be automated with RunHotel’s Dynamic pricing engine which helps your adjust prices for your whole seasonal months
Get in touch with RunHotel or write to us on [email protected]
Identify Guest Booking Patterns : If you notice particular booking patterns such as more last-minute reservations at a certain time of week, you can start to plan your upcoming year more accurately and strategize for greater success.RunHotel does have last minute pricing rules in the Dynamic pricing engine. Here rules can be set like if the booking is made just 2 days before checking, increase price by 10% or if booking made 10 days before checking, decrease price by 10%
Get in touch with RunHotel or write to us on [email protected]
Optimising Room Prices Based on Guest Preferences: In summer, people might be more concerned about getting a room with a view than they are in winter, for instance. Or, you might notice the rooms close to the bar and restaurant are much more popular on weekends, while rooms closer to the gym or work spaces are more popular during weekdays. Taking these points into consideration you can decide the room prices over the time and get the maximum booking for your hotel.
Safety check to automated dynamic prices: RunHotel has minimum and maximum pricing rules as well. They operate as safety checks for room dynamic prices. Example if the room price is 1000 Rs. Now seasonality, day of week and occupancy based rules all applied together is pushing room prices to 1800 Rs. This will not work in favour of the hotel owner. He can set a maximum price of let say 1500 Rs. which does not let dynamic price increase above it.
Conclusion
RunHotel’s dynamic pricing engine offers hotels a solution for managing rates in an increasingly competitive market. All these pricing rules can be automated and can be applied simultaneously to work best for hoteliers. By combining weekly, seasonal, occupancy-based, and last-minute pricing with minimum and maximum thresholds, hotels can plan pricing ahead for the entire year while adapting to short-term market changes. The result is a flexible, optimised pricing model that maximises both revenue and guest satisfaction, driving consistent growth for any hotel