Hotel Revenue Glossary · Pricing

Dynamic Pricing

A pricing strategy where room rates change frequently based on real-time demand signals, competitive positioning, pace, and market conditions. Unlike fixed seasonal pricing, dynamic pricing adjusts rates daily or even multiple times per day.

Why it matters: Dynamic pricing captures revenue that fixed pricing leaves on the table. On high-demand nights it raises rates to maximize ADR; on low-demand nights it lowers rates to capture occupancy. Over a year, the cumulative effect is significantly higher total revenue.

All glossary terms BAR (Best Available Rate) Yield Management Rate Shopping