Dynamic pricing is the practice of adjusting rates in real time based on demand, local occupancy, events and seasonality. 5-star hotels have used it for decades. Today it's accessible to any B&B and apartment.
Why a fixed price is costing you money
Imagine: your apartment costs €120/night all year round. During the New Year's weekend demand is 5x higher than availability — you could easily charge €300/night. But during a low-season week in November, your rooms stay empty at €120 when at €85 they'd be full.
A fixed price means losing on two fronts: losing revenue in high season and losing occupancy in low season.
Prezzo fisso vs dinamico: impatto su occupancy e revenue
Factors that influence demand
- Seasonality — summer, winter, bank holidays, festive periods
- Days of the week — Friday/Saturday vs Monday/Tuesday
- Booking lead time — last-minute bookers are often willing to pay more
- Local occupancy — if all hotels in the area are full, you can raise the price
- Local events — concerts, fairs, matches, conferences
- Weather — for coastal or mountain destinations
How to implement dynamic pricing
Method 1: Manual rules (basic)
Define seasonal multipliers in your PMS:
- High season (July–August): +40%
- Weekends: +20%
- Bank holidays and festive periods: +50%
- Low season weekdays: -15%
- Last-minute (within 3 days): +10% if high demand, -20% if low
Method 2: Automatic algorithm (advanced)
Platforms like GoHostDirect analyse demand in real time and suggest the optimal price for each night. The algorithm considers: property occupancy, competitor prices, local events, booking history.
The real impact on Revenue
Studies on properties that implement dynamic pricing show an average increase in RevPAR (Revenue Per Available Room) of 25–40% compared to fixed pricing. For a property with €40,000/year, that's €10,000–€16,000 in additional revenue.
Start tomorrow: the 3 steps
- Analyse your data: which nights are you always full? Which are always empty?
- Create basic seasonal rules in your calendar
- Monitor weekly and adjust based on results