Hospitality glossary

Dynamic pricing

A pricing approach in which the price or commercial condition changes according to demand, timing, inventory or another stated rule.

Why it matters

How dynamic pricing affects a service

Dynamic pricing can help balance demand and protect premium inventory, but rules must remain transparent. Guests should see the applicable price and conditions before they commit.

Example

In practice

A cabana package may cost more on a peak August Saturday than on a lower-demand weekday.

Related terms

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