Part 3 of eviivo’s Smart Pricing Series
Why “smart” pricing doesn’t mean “set and forget”
Running a profitable hospitality business means adjusting your prices regularly. Guest demand ebbs and flows with seasons, local events, booking trends, and availability.
To stay competitive, accommodation owners need to update rates to match those shifts – without spending hours doing it all manually.
This article, the third in eviivo’s Smart Pricing Series, explains what dynamic pricing really means for independent hotels and vacation rental managers. Learn how to use your own PMS data and promotional tools to make confident, data-led, and automated pricing changes across your booking channels.
What is dynamic pricing?
Definition:
Dynamic pricing is the practice of adjusting rates based on how demand changes throughout the year. For accommodation providers, it’s about using your latest – often real-time — booking and occupancy data to inform when prices are raised or reduced.
Why it matters:
Instead of reacting too late to busy or quiet periods, dynamic pricing helps you stay responsive to changing demand, enabling you to maximize revenue and/or occupancy over time.
What data should I look at before adjusting prices?
Use insights from your PMS and reporting dashboards to guide your manual pricing decisions. Focus on:
- Occupancy trends: How full you were this time last year vs. now
- Average Daily Rate (ADR): Whether your rates are trending up or down
- Revenue Per Available Room (RevPAR): How efficiently you’re converting availability into income
- Booking window: How far in advance guests typically book
- Local demand: Events or seasonal patterns that influence when guests travel
eviivo Suite’s Performance Manager makes it easy to identify these trends, helping you understand when it’s worth adjusting prices or running a promotion.
How does dynamic pricing work in eviivo Suite?
eviivo Suite gives you the flexibility to:
- Adjust prices in bulk across multiple rooms or properties
- Copy seasonal rates for the next quarter or year
- Apply special rates for peak periods or promotions
- Manage rate plans and promotions by channel
For the next level of convenience, use the dynamic pricing rules in eviivo Suite’s Promo Manager to automatically adjust rates or close-out booking channels as demand levels change. Without lifting a finger, you’ll see revenue increase as demand rises.
What are the benefits of managing dynamic pricing in bulk?
- Speed: Update hundreds of rates in just a few clicks
- Consistency: Keep all your OTA listings and website in sync automatically
- Control: Choose exactly when and where to apply your dynamic pricing rules
What does a practical dynamic pricing approach look like?
Let’s say a coastal inn sees demand surge in July and August but slow in September.
Using real-time PMS data, the owner decides to:
- Raise summer rates by 10% to leverage the strong seasonal demand
- Create a September “Stay Longer, Save More” offer
- Set a rule that automatically increase rates by 15% when only two rooms are left to sell
- Apply all these changes in bulk across their two other coastal properties
The results? Higher summer revenue, healthier shoulder-season occupancy, and far less time spent updating rates manually.
Common pricing mistakes to avoid
- Waiting until your booking calendar looks empty before reducing rates
- Dropping prices too far – and too soon
- Forgetting to update rates on all channels
- Setting promotions without reviewing historical performance
- Closing OTA channels off completely during the high season
Key takeaway
Dynamic pricing doesn’t mean losing control – it means using your data to stay one step ahead.
With eviivo Suite, you’re able to monitor trends easily, adjust rates automatically, and make data-driven decisions that reflect your revenue goals.
Want to learn more about dynamic pricing and automation?
Our “How to Build an Effective Pricing Strategy” guide is full of practical tips and step-by-step advice. Download it for FREE here.
Coming Up Next in the Smart Pricing Series
- The Psychology of Pricing: Why Guests Say Yes (or No)
- Common Pricing Mistakes Every Property Should Avoid
- Building a Year-Round Pricing Calendar: When to Raise or Lower Rates
- How to Benchmark Your Prices Against the Competition
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