dynamic rate marketing

NB: This is an article from Little Hotelier

Having a strategy behind your room rates is critical to your success as a small hotel. Not only is it the key to driving profit, but many guests consider hotel rates to be one of the deciding factors of where they choose to stay.

Small hotels need to get even smarter about how they market their rates online, and today’s technology allows managers and operators to do this in clever ways that also help boost revenue.

Keep reading to learn about dynamic rate marketing and how you can apply it to your small hotel.

What is dynamic rate marketing?

For nearly a century, hotels have been using the same forms of rate marketing in order to get guests to book at particular times.

Either hotels describe their rates as “beginning from $100 per night” or giving a rate range such as “ranging from $100 to $300 per night.”

While this has worked for almost 100 years, the interconnected and social travelers of today are looking for more truthful rate marketing. This is where dynamic rate marketing comes into play. Dynamic rate marketing allows hoteliers to use their real-time availability and current pricing to be broadcast into various marketing campaigns.

This is beneficial because potential guests are able to see the exact prices for the rooms they are interested in, and it allows hotel operators to develop more effective marketing strategies.

What are some dynamic rate Marketing tactics you can use at your small hotel?

You may argue that you have a limited budget, but there are definitely ways you can start to dynamically market your room rates, like…

Metasearch Marketing

Dynamic rate marketing is probably best implemented in the metasearch realm.


This marketing tactic allows you to incorporate your current rates and live availability on popular meta search sites, such as TripAdvisor, Kayak and Trivago.

By using dynamic rate marketing on meta search sites, you are able to shift attention away from the powerful OTAs and increase your direct bookings.

Banner Advertising

Banner advertisements that incorporate real-time rates and availability are far more powerful than those same banner ads without dynamic rate marketing.

Here’s an example:



By integrating dynamic rate marketing with retargeting efforts, you are able to provide your most interested customers with the most current rates and availability.

When they have the most reliable information on hand, they will be more likely to go back to your site and finalize their reservation.

Email promotions

This is a newer way to use dynamic rate marketing.


By incorporating this type of marketing tactic into your e-mail promotions, potential guests will see the most relevant information each time they open their e-mail.

The rates that are displayed will change based on your current availability.

Website Promotions

Specialized promotions can be created and dynamic rate marketing techniques can be used in order to encourage guests to book a last-minute stay.

This tactic is particularly useful on mobile platforms, because last-minute bookers tend to use their mobile devices.

Read more articles from Little Hotelier