What is the meaning / definition of Dynamic Pricing in the hospitality industry?
A rate offered on online travel agencies sites, that allows hotels to boost sales by selling a certain amount of hotel nights for the price of less hotel night(s). An example of this is the flash sale of a hotel booking for 4 nights for the price of a 3 nights stay.
This is done to enhance sales through sites like Expedia and Hotels.com in order to boost revenue and/or fill rooms in a short amount of time. This marketing and revenue tactic usually done during low-season times or when hotel room quotas are not being met. Dynamic rate is also done to attract customers from competition and break rate integrity. These rate are usually organised on online travel agency sites, with larger hotel chains and in partnership with the online travel agency itself.
See Also:
- Length of Stay
- Rate Integrity
- Online Travel Agent
- Flash Sales
- Dynamic Pricing
- Demand Based Pricing
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