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Use Dynamic Pricing

Optimize room and extra pricing with dynamic pricing that adjusts to occupancy and demand, helping maximize revenue and conversions.

What Is Dynamic Pricing?

Dynamic Pricing adjusts the upsell supplement based on how easy or hard it is to sell a better room.
Think of it like this:
  • When demand is low , upgrades should be cheaper to encourage upsells
  • When demand is high , upgrades should be more expensive (or close to full price)
Dynamic Pricing makes sure upgrades are:
  • Never too cheap (protects revenue)
  • Never too expensive (protects conversion)
 

The Two Ways to Use Dynamic Pricing for Rooms

UpsellGuru offers two different Dynamic Pricing models to calculate upsell supplements:
  1. USG Dynamic Pricing (Occupancy-based)
  2. Rate Shopper Dynamic Pricing (Supplement-based)
Both use occupancy logic — the difference is how the minimum price is calculated.


Option 1: USG Dynamic Pricing (Occupancy-Based)

With this option, you define a minimum and maximum price range for upgrades.

  • The maximum price stays fixed
  • The minimum price increases as occupancy rises
Example:
    • Low occupancy → wider range (lower minimum price)
    • High occupancy → higher minimum price
      Hotel setup:
      • Minimum: €50
      • Maximum: €100
      Dynamic behavior of the bidding range:
      • 49% occupancy → €50–€100 (original range)
      • 70% occupancy → €80–€100 (increased minimum price with increased occupancy)
      • 90% occupancy → €92–€100
       
Best for:
    • Hotels with stable pricing between room types
    • Hotel teams who want full control over pricing limits
    • Predictable and consistent pricing behavior

Option 2: Rate Shopper Dynamic Pricing

With this option, upgrade prices are calculated automatically using your live room rates .
  • The system looks at the price difference between room types
  • This difference becomes the maximum upgrade price
  • The minimum price is then adjusted based on occupancy
Example:
    • Standard Room: €100
    • Superior Room: €160
      → Maximum upgrade price is based on the €60 difference
    • The minimum price is then adjusted dynamically based on: → Max Occupancy (same logic as Option 1) → Selected maximum discount (e.g. 40%)
Best for:
    • Hotels with frequently changing room rates
    • Properties with fluctuating price gaps between room types
    • Teams who prefer automated pricing with minimal setup

Which Option Should You Use?

  1. Choose Occupancy-Based Pricing if you want control and stability
  2. Choose Rate-Based Pricing if your pricing is dynamic and frequently changing
Both options ensure your upgrade prices stay competitive and aligned with demand.

Dynamic Pricing for Extras: Early Check-in & Late Check-out

Dynamic Pricing can also apply to Early Check-in (ECI) and Late Check-out (LCO), when using Rate-Based Pricing.
  1. Prices are calculated as a percentage of the room rate
  2. Automatically adjusts based on availability and daily rates
This ensures fair and flexible pricing for partial-day services.
 

In Summary

Dynamic Pricing helps you:
  1. Increase upsell revenue
  2. Stay competitive with real-time demand
  3. Reduce manual pricing adjustments
Offer the right upgrade price at the right time. Please reach out to support@upsellguru.com to enable this.