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Pricing
Compression night
A compression night is a date when city-wide accommodation supply is close to sold out, usually because of a major event, conference, holiday or festival. Prices across the whole market rise sharply as remaining inventory becomes scarce.
Why Compression night matters for your revenue
A handful of compression nights can contribute a disproportionate share of annual revenue. Missing them — by pricing early, or by leaving an old rate in place — is one of the most expensive pricing errors an owner can make.
Related terms
- Dynamic pricingDynamic pricing is the practice of changing nightly rates continuously in response to demand signals: local occupancy, competitor rates, events, day of week, seasonality and how far ahead the booking falls. Rates are recalculated regularly rather than fixed at the start of a season.
- SeasonalitySeasonality is the repeating annual pattern of demand in a market, driven by climate, school holidays, religious calendars, events and travel habits. It determines which months command premium rates, which sustain steady occupancy and which need active demand generation.
- ADRAverage Daily Rate is the average price paid per booked night over a period. It is calculated from room revenue divided by the number of nights actually sold, so it describes the rate guests paid rather than the rate advertised, and it ignores nights that stayed empty.
- Booking windowThe booking window is the spread of time between when guests reserve and when they arrive, measured across all bookings for a property or market. It is usually described as a distribution rather than a single number, because leisure and business guests book on different horizons.
Dynamic Pricing at Pinnacle Path
Compression night sits inside our dynamic pricing work. See how we apply it market by market.