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Pricing
Dynamic pricing
Dynamic 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.
Why Dynamic pricing matters for your revenue
Fixed rates leave money on the table in peak weeks and leave the calendar empty in soft ones. Dynamic pricing captures the premium when demand spikes and protects occupancy when it does not, which usually matters more to annual revenue than any single listing change.
Related terms
- Base priceThe base price is the reference nightly rate a pricing system adjusts up or down from. It represents what the property should earn on an ordinary night in ordinary demand, and it anchors every seasonal, weekend, event and last-minute adjustment applied afterwards.
- 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.
- Compression nightA 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.
- 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.
Dynamic Pricing at Pinnacle Path
Dynamic pricing sits inside our dynamic pricing work. See how we apply it market by market.