Using dynamic pricing

You can use the Maintain Dynamic Pricing page to automatically adjust rate prices in response to market conditions and availability goals. Any rates that use dynamic pricing are adjusted upwards or downwards on specified dates based on the adjustment amount or adjustment percentage that you specify.

Before you can use dynamic pricing, you must:

  • Select the Apply Dynamic Pricing check box on the Maintain Room Rates page. To select this check box, click Rate and Sales > Pricing > Room Rates.
  • Select the Apply Dynamic Pricing check box on the Maintain Room Types page. To select this check box, click Administration > Property > Rooms > Room Types.

To configure dynamic pricing:

  1. Select Rate and Sales > Pricing > Dynamic Pricing.
  2. Click the Parameters tab.
  3. On the Parameters tab, specify this information:
    Adjustment Type
    Specify the adjustment type. Following are the available values:
    • Percent: Specify the percentage based on which adjustment must be made to the rates.
    • Amount: Specify the amount by which the rates must be increased or decreased.
    Adjustment
    Specify the adjustment amount or the adjustment percentage.
  4. Click Save.
  5. Click Pricing Control on the Daily Goals tab.
  6. In the Set Pricing Goals section, specify this information:
    Start Date
    Specify the date on which the dynamic pricing begins.
    End Date
    Specify the date on which the dynamic pricing ends.
    Occupancy Goal
    Specify the property occupancy rate that you want to maintain.
    ADR (Average Daily Rate) Goal
    Specify the average daily rate that you want to maintain.
    Date Pattern
    Specify the pattern based on which the dynamic pricing is applied.
  7. Click Save.
  8. Click Set Adjustment Count on the Daily Goals tab.
  9. In the Pricing Adjustment Count section, specify this information:
    Start Date
    Specify the date on which the pricing adjustment begins.
    End Date
    Specify the date on which the pricing adjustment ends.
    Adjustment Count
    Specify the adjustment count based on which the booking rates are increased or decreased. Use positive figures such as 1, 2, 3 to set up rate increments or use negative figures such as -2, -4 to set up rate decrements.
    The table demonstrates how dynamic pricing works. The adjustment amount set for this example is $10 and the table covers a five day period.
    Jan 1 Jan 2 Jan 3 Jan 4 Jan 5
    Rate 1 - Standard Price 100 100 100 100 100
    Increments Set Per Day -2 -2 0 +1 -3
    Resulting Rate Price 80 80 100 110 70
    Date Pattern
    Specify the pattern based on which the dynamic pricing is applied.
  10. Click Save.