A strategy of adjusting room rates in real-time based on demand, competition, and market conditions to maximize revenue.
Dynamic pricing in hotels is the strategy of continuously adjusting room rates based on real-time supply and demand, competitor pricing, market conditions, booking patterns, and seasonal trends. Rather than using fixed rates, hotels change prices multiple times per day to capture maximum revenue. When demand is high (conferences, holidays, peak season), rates increase. When demand is low, rates decrease to stimulate bookings. Modern dynamic pricing uses algorithms and revenue management systems to automate these adjustments across all distribution channels.
Hotels have a fixed inventory of perishable products - an unsold room tonight generates zero revenue forever. Dynamic pricing ensures hotels capture the highest possible rate when demand is strong and avoid empty rooms when demand is weak. Hotels using dynamic pricing typically achieve 5-20% higher RevPAR compared to those using static pricing, as they better match price to the guest's willingness to pay at any given moment.
Opally complements your dynamic pricing strategy by converting more inquiries into bookings at your optimized rates. When potential guests reach out with questions about pricing or availability, Opally provides instant, accurate responses that reduce booking hesitation and capture revenue at the rates your revenue management system has set.
