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Dynamic Pricing Overview & Setup Guide

Learn how Hospitable’s Dynamic Pricing works and how to set it up in order to maximize revenue

Kelly avatar
Written by Kelly
Updated this week

Hospitable’s Dynamic Pricing automatically adjusts your nightly rates based on market demand, seasonality, and other factors to help maximize revenue while maintaining healthy occupancy.

Instead of manually updating prices or keeping rates static in a constantly changing market, Dynamic Pricing analyzes multiple demand signals to recommend the best possible rate for each night—up to 24 months into the future.

You’re always in control. Dynamic Pricing provides smarter defaults and automation, while still giving you full flexibility to adjust pricing to match your strategy.


How Dynamic Pricing Works

Dynamic Pricing calculates your nightly rate by starting with a base price, then applying adjustments based on changing market conditions.

In simple terms: Nightly price = Base price + adjustments

(Adjustments can be positive or negative.)


Base Price

Your base price is the foundation of your pricing. It represents the typical value of your property across the year, before adjustments for demand or timing.

Hospitable determines your base price using factors like:

  • Number of bedrooms, bathrooms, and allowed guests

  • Unit type (entire home, private room, etc.)

  • Amenities (parking, pool, etc.)

  • Fees (cleaning, extra guest fees, security deposits)

  • Location

  • Historical performance of your property and similar nearby listings

  • And more

Choosing a base price strategy

You can choose a strategy that aligns with your revenue goals:

  • Conservative – Slightly lower base prices to prioritize occupancy

  • Recommended – A balance of occupancy and revenue

  • Aggressive – Slightly higher base prices to prioritize revenue per booking

Your base price evolves over time as your property builds booking history.

Custom Base Price (Optional)

Most properties perform well using Hospitable’s data-driven base price. However, setting a custom base price may make sense if:

  • Your property has unique characteristics or upgrades that the market data doesn’t fully capture

  • You’ve recently renovated or significantly upgraded the listing

  • You’re launching a new listing and have strong local market knowledge

As the property owner or manager, you often have intuitive knowledge about where your property stands in the local market. A custom base price gives you control over your pricing foundation while still benefiting from all the automatic adjustments for demand, seasonality, and other market factors.

Monitor your booking performance after setting a custom base price and be prepared to adjust if needed. As your property builds more booking history, you may choose to switch to our data-driven base price instead.


Adjustments

Adjustments modify your base price to reflect changing demand conditions, including:

  • Local demand – Events, holidays, and seasonal booking trends

  • Seasonality – High and low seasons in your specific market

  • Booking window – How far in advance guests are booking

  • Day of week – Weekday vs. weekend patterns

  • Availability – Pricing for harder-to-fill gaps

  • Restrictions – Enforcing your minimum and maximum prices

  • Past pricing – For far-future dates, prices reference what your property booked for similar dates one year ago.

    • For dates 120+ days in the future, prices align with historically booked rates.

    • For dates 270+ days in the future, prices align with historically booked rates plus 10%.

Your platform-specific markups are applied on top of Hospitable’s Dynamic Price, allowing you to customize pricing by channel.


New Dynamic Pricing Model

We’ve rolled out an updated Dynamic Pricing model that improves pricing accuracy, stability, and ease of use.

The new model better interprets demand signals in your market so that prices respond more precisely—without requiring as much manual tuning.

What’s improved

The updated model is better at:

  • Separating different demand drivers (seasonality, day-of-week patterns, and events)

  • Estimating what guests are willing to pay based on real demand

  • Performing well in low-data situations, including far-future pricing (200+ days out)

  • Responding to demand changes without creating extreme price spikes

These improvements make recommendations more accurate across both high- and low-demand periods.

What this means for your settings

Your existing Dynamic Pricing settings still apply. However, many users will find that:

  • Strong results require less configuration

  • Advanced settings are easier to use effectively

  • Prices feel more stable while still responding to demand

If you’ve customized advanced settings, we recommend reviewing them when you switch to the new model.

Rollout timeline

You can opt in to the new model any time until February 27, 2026. After that date, all properties using Dynamic Pricing will automatically move to the new model.


Setting Up Dynamic Pricing

Key points

  • You can use Dynamic Pricing on some or all of your properties

  • If you’re already using a third-party pricing tool, you don’t need to disconnect it to preview Hospitable’s Dynamic Pricing

  • Setup is fully reversible—disabling Dynamic Pricing restores your previous prices


How to Enable Dynamic Pricing

  1. Open the Calendar for a property in Hospitable
    Note: Setup is not available on mobile or small screens where the calendar sidebar is hidden.

  2. Click Preview Dynamic Pricing at the top of the calendar, or Dynamic Pricing on the sidebar.

    Hospitable's "preview dynamic pricing" button on the single property calendar shown

  3. (Select properties only) If your property is eligible, Hospitable may auto-tune recommendations based on your pricing history, including:

    • Base price

    • Minimum price

    • Last-minute pricing

    • Weekend pricing

    • Local demand

    • Seasonality

    This is only a starting point—you can change everything.

  4. Set your base price strategy (Conservative, Recommended, or Aggressive)

  5. Review recommended prices (shown for the next 180 days):

    • Green: potentially underpriced

    • Red: potentially overpriced

    • Black: close to your current price

    Hover over any calendar date to see the price calculation

  6. Click on Customize setup to create optional customizations:

    • Minimum and/or maximum prices

    • Custom base price

      • Your Base Price is not the same as your minimum or maximum prices. The Base Price will fluctuate based on market conditions and serves as the starting point for all Dynamic Pricing calculations, while your minimum and maximum prices are the lowest and highest rates Dynamic Pricing will ever set.

    • Adjust advanced settings (last-minute pricing, weekend pricing, demand sensitivity, seasonality, far future pricing, historical anchoring, minimum night stay)

    • Click on Advanced Settings to:

      1. Set Last Minute Pricing:

        • Edit the default lead times (0-60 days) and percentage discounts across up to five different checkpoints.

        • If you ever want to return to the model recommendations, click Reset to default at the bottom.

      2. Set Weekend and/or Local events & demand pricing:

        • You can increase or decrease the influence of Weekend (Friday and Saturday nights) and/or Local events & demand pricing to a customized percentage of your choosing, or one of the existing options:

          • Reduced impact -10%

          • Recommended

          • Increased impact +10%

          • High impact +50%

          • Very high impact +100%

          • Or a percentage increase/decrease of your choosing

      3. Set Seasonality:

        • Control how strongly prices react to seasonal demand by using one of the following strategies.

          • Reduced impact

          • Recommended

          • Increased impact

          • Set a custom percentage

            • Once selected, monthly adjustment fields become available. Edit the percentage adjustment for each month, ranging from -100% to +300%, to reflect slower or peak seasons in your market. Example: January = 200% increase, and so on.

      4. Set Far Future Pricing:

        • Fine-tune your prices for future dates. You can raise future prices to secure premium stays, or lower them to attract bookings.

        • Edit the default lead times (>60 days) and percentage increases across up to three different checkpoints.

        • If you ever want to return to the model recommendations, click Reset to default at the bottom.

      5. Set Historical Anchoring:

        • Control how strongly Dynamic Pricing references your historical prices when calculating future rates. Each rule tells Dynamic Pricing how much weight to give your historical prices at different points in the booking window.

        • You can add up to three anchoring pairs, each defined by:

          • Days ahead: 0–730 days

          • Anchoring percentage: 0% to +300%

        • Fill your gap nights and secure last-minute bookings by using this advanced setting.

          • Choose your longest stay length: This is the longest stay length you'll accept. You can choose one length, or set this per day of the week.

          • Choose your shortest stay length: This is the shortest reservation length you're willing to accept between reservations or to attract last-minute reservations. You can set one length for all dates, or customize by each day of the week.

          • Choose your gap night minimum stay (optional): Select a shorter stay floor to allow reservations between two other bookings

          • Choose your strategy:

            • Decrease sooner: Relaxes sooner to prioritize your occupancy

            • Recommended: Balanced

            • Decrease later: Relaxes later to prioritize longer stays

    • To proceed, press Go back to exit the Advanced Settings menu

  7. Click continue and decide how to handle existing manual prices:

    • Keep them, or

    • Allow Dynamic Pricing to override all dates

  8. Click Activate Dynamic Pricing to push prices to all connected channels

    • Any discounts, promotions, or markup rates you use are applied on top of Dynamic Pricing, meaning you may see prices below your minimum or above your maximum.

If you disable Dynamic Pricing later, Hospitable will restore your previous prices, including manual prices.


Troubleshooting Dynamic Pricing Setup

If you encounter issues when setting up Dynamic Pricing, the following solutions may help:

Unable to Activate Dynamic Pricing

  • Check property details: Ensure that essential property details such as the number of bedrooms and bathrooms are added under Rooms and Features. Missing details may prevent Dynamic Pricing from working.

  • Not seeing the Dynamic Pricing option on Desktop? It may be your browser settings. Watch this video for more details.

  • Users in a free trial will need to subscribe to a plan before activating. While you'll need to add a payment method right away, your subscription won't start until the end of your free period.


Next Steps

After setting up Dynamic Pricing, we recommend that you:

  • Monitor your performance: Dynamic pricing should be reviewed from time to time. If needed, you can modify your base price strategy, minimum price, maximum price, as well as override dates with a manually set price. Dynamic Pricing is designed to update your rates automatically, but some occasional maintenance will help ensure it performs optimally for your specific properties.

  • Review manual prices: You're always in control and can use manual prices to override recommended prices. Hospitable underlines manually set prices on your calendar to distinguish them from dynamic prices. If you want to remove any manual prices, select the dates in your calendar and click Use dynamic pricing under the price in the right sidebar.

  • Disable other pricing software: If you were using a third-party pricing software integration (such as PriceLabs) for the property, don't forget to turn it off!

  • Monitor platform-specific pricing: If you are using custom Airbnb promotions, your pricing will reflect your 60-day median price instead of your Dynamic Price. In order to see your Dynamic Price, you'll need to remove the promotion.

  • Check markups: You can still set markups, which will be added on top of your dynamic price.


How Much Does Dynamic Pricing Cost?

Dynamic Pricing is included for all billed, active properties—up to the number included in your plan.

If Dynamic Pricing is enabled and you exceed your plan’s included properties:

  • If a property has at least one check-in during the billing cycle: It’s billed at the standard add-on rate (Dynamic Pricing included).

  • If a property has no check-ins during the billing cycle: It’s billed at a reduced add-on fee of $10 USD per month per property (or local equivalent).

For a detailed breakdown, visit your subscription settings dashboard (Settings > Subscription, or view our pricing comparison page here).

Only primary account holders can enable or disable Dynamic Pricing. Secondary users can preview pricing but cannot activate the feature.

If you’re on a Legacy subscription plan, Dynamic Pricing is preview-only. Upgrading to a current plan is required to use this feature.

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