4 Levels of Dynamic Pricing

4 levels of dynamic pricing I used for small hotels.

𝗟𝗲𝘃𝗲𝗹 𝟭: 𝗦𝗲𝗮𝘀𝗼𝗻𝗮𝗹𝗶𝘁𝘆 𝗣𝗿𝗶𝗰𝗶𝗻𝗴

Price the room based on seasonality of the destination.

I categorize seasonality in Phuket island like this:

1 price for Low Season: May - October (6 months)

1 price for Mid Season: November & April (2 months)

1 price for Shoulder Season: February-March (2 months)

1 price for High Season: December-January (2 months)

𝗟𝗲𝘃𝗲𝗹 𝟮: 𝗟𝗲𝘃𝗲𝗹 𝟭 + 𝗗𝗮𝘆 𝗼𝗳 𝗪𝗲𝗲𝗸 𝗣𝗿𝗶𝗰𝗶𝗻𝗴

Some destinations have high discrepancy in demand between weekdays and weekends.

For instance, Hua Hin is a popular beach destination for people who live in Bangkok to travel during the weekends, so I priced Friday and Saturday nights 5-15% higher than weekdays for small hotels in Hua Hin.

𝗟𝗲𝘃𝗲𝗹 𝟯: 𝗟𝗲𝘃𝗲𝗹 𝟮 + 𝗟𝗲𝗻𝗴𝘁𝗵-𝗼𝗳-𝗦𝘁𝗮𝘆 𝗣𝗿𝗶𝗰𝗶𝗻𝗴

Setting discounts for travelers who stay longer increases the chance of capturing high-revenue bookings.

Here’s what I set for

Sametnangshe Boutique:

• 5% discount for 2 nights
• 10% discount for 3 nights

𝗟𝗲𝘃𝗲𝗹 𝟰: 𝗟𝗲𝘃𝗲𝗹 𝟯 + 𝗢𝗰𝗰𝘂𝗽𝗮𝗻𝗰𝘆-𝗿𝘂𝗹𝗲 𝗣𝗿𝗶𝗰𝗶𝗻𝗴

In this level, I increased the price based on the occupancy of each date to capture more revenue for high demand dates.

For example:

• Increase the rates by 2% when occupancy reaches 20%
• Increase the rates by 3% when occupancy reaches 40%
• Increase the rates by 4% when occupancy reaches 60%
• Increase the rates by 5% when occupancy reaches 80%
• Increase the rates by 5% when occupancy reaches 90%

The more dynamic the price, the higher the opportunity for more revenue.