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Pricing
Base price
The 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.
Why Base price matters for your revenue
A base price set too low caps every subsequent adjustment, because multipliers apply to a smaller number. Getting this figure right is usually the single highest-impact pricing decision on a listing.
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.
- 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.
- 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.
- Minimum stayMinimum stay is the shortest number of nights a guest may book. It can be set globally or varied by date, so peak weekends carry longer minimums and quiet midweek periods carry shorter ones. It shapes both the volume and the profile of bookings received.
Dynamic Pricing at Pinnacle Path
Base price sits inside our dynamic pricing work. See how we apply it market by market.