Traditionally most products and services in the UK come with a fixed price tag, but with the rise of online sales this appears to be changing and the hotel industry stands to reap the benefits.
Dynamic pricing, also known as ‘real-time pricing’, allows hotel owners and managers to adapt prices according to the level of demand at any one time.
For hotels which see huge variations in occupancy between certain days of the week and times of year, this is a really effective way of driving up bookings during the quiet periods and filling rooms at the most profitable price when demand is high.
Hotel Executive, our hotel management software, offers a dynamic pricing module which can be set up to automatically modify room prices according to different criteria including the total number of rooms sold, the number of specific room types sold and the total revenue.
So, on a day of the week when your occupancy levels are low, the room prices automatically fall to offer potential customers a discount, providing added incentive to book.
This flexible approach to pricing is becoming more common as the internet allows hotel businesses to more easily monitor consumer behaviour.
The most familiar use of dynamic pricing is with budget airline fares which vary depending on availability of seats, travel dates and a raft of other factors.
For hotels, the principle is the same, it is about selling room nights for a price that the customer is able and willing to pay.
To find out more about our dynamic pricing module and how it can benefit your hotel, get in touch.