Work out dynamic pricing estimate instantly with clear inputs, formula shown and shareable results.
Dynamic pricing combines three signals: scarcity of remaining inventory, booking pace against forecast, and proximity to arrival. Close to arrival the direction reverses depending on inventory — tight inventory supports a premium, while heavy remaining inventory calls for a discount.
Scarcity factor
Scarcity = 1 + (50 - Remaining inventory %) / 125
Pace factor
Pace = 1 + (Pickup vs forecast % - 100) / 300
Recommended rate
Rate = Base rate x Scarcity x Urgency x Pace
Yes, when inventory remains heavy. An empty room earns nothing, so the last-minute rate floor should be marginal cost, not the published rate.
Training customers to wait for discounts, and rate parity complaints across channels. Consistency of logic matters more than the exact factors.