Hospitable's Dynamic Pricing automatically adjusts your nightly rates based on market demand, seasonality, and other factors to help maximize your revenue and maintain optimal occupancy.
Instead of having to manually update prices or keep rates stable in an ever-changing environment, Dynamic Pricing analyzes multiple data points to automatically set the best possible rates for each night on the next 24 months of your calendar.
Ultimately, though, you're in the driver's seat. You’re not handing over control; rather, you’re gaining smarter defaults, with full flexibility.
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How Dynamic Pricing Works
With Dynamic Pricing, your nightly rate is calculated by adding and subtracting adjustments from your base price. Here is what that means in more detail:
Base Price
Your base price is the starting point for your nightly rate. It takes into consideration your unique property's attributes and factors in property details such as:
Number of bedrooms, bathrooms, and allowed guests
Unit type (private room, entire home, etc.)
Property amenities (parking, pool, etc.)
Fees (cleaning fee, security deposit, extra guest fee, etc.)
Location
Property performance (bookings at your property and others nearby)
And more
Choosing Your Base Price
You can select a pricing strategy that aligns with your revenue goals:
Conservative: Sets base prices slightly lower than the recommended rate to prioritize high occupancy rates.
Recommended: Sets rates to optimize both occupancy and revenue.
Aggressive: Sets base prices slightly higher than the recommended rate to increase revenue per booking, with a potential trade-off in occupancy.
Whichever strategy you choose, your base price will evolve over time based on the performance of your property. It reflects the median price for your property across the entire year, before factoring in any adjustments.
Custom Base Price Option
When to Use a Custom Base Price
While our suggested base price works well for most properties, setting a custom base price might be better in some situations:
For properties that may differ from the market:
Exceptional views or location advantages.
Recent renovations that dramatically change the value.
Designer furnishings or luxury upgrades.
Custom amenities not common in your market.
For new listings with limited booking history:
If you have specific knowledge about your property's competitive position.
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 are added to or subtracted from the base rate based on various changing factors:
Local demand: Higher interest in your area due to local events, holidays, occupancy, and other seasonal trends will command a higher rate.
Seasonality: Accounts for high and low seasons in your specific market.
Booking window: Modifies rates based on how far in advance guests are booking.
Day of week: Typically prices weekends higher than weekdays, based on your market's patterns.
Availability: Reduces pricing for hard-to-fill gaps between your reservations.
Restrictions: Adjusts pricing when recommendations go below your minimum price or above your maximum price.
To summarize, your nightly price = base price + adjustments (adjustments can be positive or negative)
Setting Up Dynamic Pricing
Key Points About Setup
You can use Dynamic Pricing on some or all of your properties.
If you’re already using a third-party dynamic pricing integration, you don't have to disconnect the integration to try Hospitable's Dynamic Pricing.
The process is completely reversible - if you try it out and decide it’s not for you, you can disable it at any time, and we will revert all of your prices to what they were prior to enabling Dynamic Pricing.
How to Enable Dynamic Pricing
Select one of your properties from the Hospitable calendar (you must be in the single-property calendar view on the desktop version of our app; setup is not available in the mobile app or on small screens if the calendar sidebar is not visible).
Click the Preview Dynamic Pricing button at the top of the calendar
Review your price recommendations.
Hospitable will display 24 months of recommended pricing alongside your current prices:We'll highlight recommended prices in green when we think you may be underpriced.
We'll highlight prices in red on dates that we think you may be overpriced
Recommended prices in black mean there is only a small gap with your current prices.
Confirm your base price strategy.
If you feel your recommended base price is too high, you can choose a Conservative strategy to lower your base price; choose an Aggressive strategy if you feel your base price is too low.Click Customize setup.
Optional customizations:
Set an optional minimum and/or maximum price (you may choose to leave these fields empty).
Your minimum price should be the absolute lowest rate you'll accept for your property on the slowest day of the lowest season (before discounts and/or markups are applied). Think of it as your break-even price. This is not the same thing as a base price, as discussed above.
Your maximum price is the highest rate you'd feel comfortable charging for your property (markups will be added on top of your maximum price).
Set an optional custom base price.
As outlined above, in most situations, we advise using our data-driven base price options rather than a custom base price.
Click Continue and decide if you would like to keep your manually set prices.
Hospitable will analyze your property to see how many of your available calendar dates have a manually set price. You can choose:Keep the prices you have set manually on your calendar.
Have dynamic pricing override all calendar dates.
Important note: If you choose to disable Dynamic Pricing later, Hospitable will revert to your previous prices, including any manual prices you may have cleared during setup. You're in control!
Click Activate dynamic pricing to push your recommended prices to all channels.
Remember: 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.
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.
Not seeing the Dynamic Pricing option on Desktop? It may be your browser settings. Watch this video here.
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!
How Much Does Dynamic Pricing Cost?
Dynamic Pricing is included for all Hospitable users on the Host, Professional, and Mogul Plans. Legacy users can preview Dynamic Pricing but must upgrade to enable it.
Note: Properties with Dynamic Pricing enabled will be included on your invoice as an Active Property, regardless of check-in activity.