notitur.com August 24, 2026

Revenue

Dynamic pricing

Dynamic pricing adjusts rates in real time based on demand, competition, lead time and other factors. Instead of a fixed price, the hotel goes up when pressure is high and down when supply is loose. It is the foundation of modern revenue management.

Example A concert night rate can triple compared with a normal low season Tuesday.

Related terms

Revenue

RMS

A revenue management system uses demand, competitor and booking data to recommend the optimal price for each...

 Revenue

Yield management

Yield management is the discipline of selling the right room to the right guest at the right price and time....

 Revenue

ADR

The average daily rate is the average revenue per occupied room over a period. You get it by dividing room...

 Revenue

Ancillary revenue

Ancillary revenue is what a hotel or airline earns beyond its core sale. Baggage, seat selection, parking,...

Articles that mention this term

FAQ

What is dynamic pricing in hospitality?
Dynamic pricing is a strategy that adjusts hotel room rates in real time based on demand, competition, booking window, and other market factors. Instead of a fixed rate, the hotel raises prices when occupancy is high or a major event is nearby, and lowers them when demand is weak.
How is dynamic pricing calculated?
It is calculated using revenue management algorithms that analyze historical data, current occupancy, competitor rates, booking pace, and external events. For example, if a hotel sees only a few rooms left for a high-demand date, the system automatically increases the price for those last units.
What is the purpose of dynamic pricing and how is it different from a fixed rate?
Its purpose is to maximize revenue by selling each room at the highest price the market is willing to pay at that moment. It differs from a fixed rate because it allows the hotel to react to real-time demand changes, such as a spike from a concert or a drop due to bad weather, which a static price cannot do.

Explore the glossary

More terms with the letter DSee all terms

Notitur is an independent digest. It is not the official site of any brand mentioned. Content is editorial and produced with AI assistance and editorial review, and may contain errors. Verify anything important with the original source. This is not financial, legal or investment advice. Some links or blocks may be sponsored or affiliate. Trademarks belong to their owners. You can unsubscribe at any time with one click, and you can request access or deletion of your data at notitur.com/contact.

⚙ Admin