The environment has drastically changed in the last five years. Economic volatility, shifting traveler behavior, and increased competition have made pricing decisions more critical than ever. Guests are booking later, being more price sensitive, comparing more options, and expecting value. The margin for error is shrinking.
NB: This is an article from RMS Cloud
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In a market where competitors adjust pricing daily, sometimes hourly, monthly updates are simply not enough. Every day you don’t update your rates is money left on the table.
Dynamic pricing tools are becoming table stakes.
Every pricing decision counts because there is no pop-up telling you when you have left money on the table. Sell a room for $120 when you could have gotten $280? That chance is gone for good. Real-world examples show the impact.
When major events like concerts or festivals are announced, hotels that win are the ones that adjust their rates early and capture three to four times more revenue than the competition.
Think about the Taylor Swift Era’s tour or Eurovision: in some cities, rates jumped by 300 to 400%overnight, for properties in the immediate vicinity of the event and for those in fairly close proximity. Properties using dynamic pricing tools were able to capitalize immediately, and have their rates automatically adjusted when high demand was detected. Those relying on manual updates missed out. They probably sold their rooms, but not for the higher price they could have commanded.
This reality isn’t just for peak demand major events being announced. Once the event is over, demand drops quickly. If you are still charging high-season rates days after the crowds leave, you risk losing bookings. Dynamic pricing tools detect these shifts in real time and adjust accordingly, helping you maintain occupancy and revenue.
Automation does not mean losing control
One concern we hear often is the fear of giving up control. Kateryna explained that automation does not mean the system runs wild. You set the rules. Minimum and maximum rates, occupancy goals, and restrictions are all defined by you. The system operates within those boundaries.
You can also choose how much control you keep. Many operators start by reviewing pricing suggestions before allowing the system to make changes. Over time, as confidence grows, most move to full automation.
But in any case, the decision is yours. You set the pace on how fast or how much you want to let the algorithm run your rates.
