While Dynamic Pricing automatically adjusts your nightly rates, you still maintain full control over your pricing strategy. Once the initial setup is complete, you can make ongoing adjustments to maximize both occupancy and revenue.
Understanding Dynamic Pricing
Before making any changes to your settings, it's important to understand how Dynamic Price rates are formulated.
Dynamic Pricing Formula: Base price + price adjustments (can be positive or negative) = nightly rate
When and How to Make Changes to Your Dynamic Pricing Setup
You can learn more about Price Adjustments here.
When should I adjust my base price?
Consider adjusting your base price if:
Your occupancy is consistently too high (you may wish to use an Aggressive base price instead)
Your occupancy is consistently too low (use the Recommended or Conservative base price)
You've made significant improvements to your property
Your business goals have changed (prioritizing more revenue per booking vs. higher occupancy)
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 use a non-custom Base Price instead.
How long should I wait before making changes?
Allow at least a few weeks to evaluate performance (the longer you wait, the better you'll be able to assess actual performance).
For seasonal properties, consider comparing to the same period in previous years. Your rates and occupancy from a few months ago may not reflect the current market.
Look for patterns rather than reacting to individual bookings or brief fluctuations.
Remember that Dynamic Pricing works best over longer periods, so avoid making frequent changes based on short-term results.
Making Manual & Custom Price Adjustments
How do I override Dynamic Pricing for specific dates?
You can set custom prices for specific dates even while using Dynamic Pricing:
Navigate to your calendar
Select the date(s) you want to modify
Enter your manual price
Save changes
How do I remove manual changes so Dynamic Pricing can set my pricing?
If you've manually edited the price on your calendar, you'll see the price underlined to indicate that it is not following the Dynamic Price.
If you wish to revert the manual change:
Open your calendar and select the date.
In the right-hand panel, look for the pricing indicator under the price. It will suggest whether you are overpriced, underpriced, or priced right.
Next to the indicator, there will be a "Show why" link. Click on it.
4. Click “Use dynamic pricing” at the bottom of the price calculation panel that drops down:
How do I remove manual changes so Dynamic Pricing can set my minimum night stay?
If you've manually edited the minimum stay on your calendar, you'll see the minimum night stay underlined to indicate that it is not following the Dynamic setting.
If you wish to revert the manual change:
Open your calendar and select the date.
In the right-hand panel, look for the minimum stay indicator under the minimum night stay setting. It will suggest whether the property's min stay length is too low, too high, or just right.
Next to the indicator, there will be a "Show why" link. Click on it.
4. Click “Use dynamic pricing min stay” at the bottom of the minimum stay calculation panel that drops down:
Can I use rule-sets to manage Dynamic Pricing for dates?
Yes, rule-sets allow you to set a custom markup/down of your price price and a custom minimum and maximum price for specific dates.
Can I control my last minute bookings?
Yes, you can fine-tune your strategy for lead times of less than 60 days using Last Minute Pricing.
To do this, go to your calendar, click on Dynamic Pricing, then Advanced settings.
Choose the lead time and the percentage you'd like to increase or decrease your rates across up to five different checkpoints. If you ever want to return to the model recommendations, click Reset to default at the bottom.
Can I use advanced settings to automatically change pricing for local events or weekends?
Yes, you can further adjust your Weekend and/or Local Events & Demand pricing.
To do this, go to your calendar, click on Dynamic Pricing, then Advanced settings. You can customize both categories with any percentage (positive or negative), or choose one of the existing options:
More conservative -10%
Recommended
More aggressive +10%
Ambitious +50%
All in +100%
Can I set my prices higher or lower for dates further out?
Yes, you can fine-tune your prices for future dates using Far Future Pricing. Raise future prices to secure premium stays, or lower them to attract bookings.
To do this, go to your calendar, click on Dynamic Pricing, then Advanced settings.
Choose the lead time (at least 60 days) and the percentage you'd like to increase or decrease your rates. You can do this for up to three different checkpoints (for example, 60 days, 120 days, and 180 days).
If you wish to return to the model recommendations at any point, click Reset to default at the bottom.
Best Practices for Long-Term Success
Review your performance
While Dynamic Pricing is designed to optimize automatically, we recommend reviewing your occupancy rates and overall pricing strategy periodically and making adjustments as needed.
Optional: Combine with other pricing strategies
If you choose, Dynamic Pricing works well alongside:
Length-of-stay discounts for longer bookings
Early bird discounts for bookings made well in advance
Last-minute discounts for filling vacant nights
These are set on the booking platforms and are not considered when setting your Dynamic Price. Remember that platform discounts may result in final rates below your set minimum price.
Find out more about Hospitable's Dynamic Pricing here.