Why dynamic pricing is no longer optional for hospitality

When we launched Hospitality Learning Labs, our goal was simple: create a space where hospitality professionals can learn practical strategies to thrive in a rapidly changing market. No jargon, no fluff, just actionable insights.

In episode two, I had the pleasure of sitting down with tech expert and industry veteran Kateryna Nalbadian, VP of Customer Success at RoomPriceGenie, to talk about one of the most critical topics for operators today: revenue management and dynamic pricing.

If you missed the live session, the full webinar on demand is available here. But if you’re short on time, here are my highlights and key takeaways

Manual pricing is costing you more than you think

Kateryna shared some eye-opening numbers. Nearly 79%  of hoteliers spend over 11 hours a week on manual pricing tasks that could be automated. That is a full workday lost every week to repetitive pricing updates. Even more concerning, 45% of operators miss revenue opportunities weekly because they cannot act quickly enough. And 36% still update rates monthly or less.

In a market where competitors adjust pricing daily, sometimes hourly, monthly updates are simply not enough. Every day you don’t update your rates is money left on the table.

The market has changed, and speed matters

The environment has drastically changed in the last five years. Economic volatility, shifting traveler behavior, and increased competition have made pricing decisions more critical than ever. Guests are booking later, being more price sensitive, comparing more options, and expecting value. The margin for error is shrinking.

Dynamic pricing tools are becoming table stakes.

Every pricing decision counts because there is no pop-up telling you when you have left money on the table. Sell a room for $120 when you could have gotten $280? That chance is gone for good. Real-world examples show the impact.

When major events like concerts or festivals are announced, hotels that win are the ones that adjust their rates early and capture three to four times more revenue than the competition.

Think about the Taylor Swift Era’s tour or Eurovision: in some cities, rates jumped by 300 to 400%overnight, for properties in the immediate vicinity of the event and for those in fairly close proximity. Properties using dynamic pricing tools were able to capitalize immediately, and have their rates automatically adjusted when high demand was detected. Those relying on manual updates missed out. They probably sold their rooms, but not for the higher price they could have commanded.

This reality isn’t just for peak demand major events being announced. Once the event is over, demand drops quickly. If you are still charging high-season rates days after the crowds leave, you risk losing bookings. Dynamic pricing tools detect these shifts in real time and adjust accordingly, helping you maintain occupancy and revenue.

Automation does not mean losing control

One concern we hear often is the fear of giving up control. Kateryna explained that automation does not mean the system runs wild. You set the rules. Minimum and maximum rates, occupancy goals, and restrictions are all defined by you. The system operates within those boundaries.

You can also choose how much control you keep. Many operators start by reviewing pricing suggestions before allowing the system to make changes. Over time, as confidence grows, most move to full automation. In fact, 97%of RoomPriceGenie customers eventually let the system run automatically because they see the results and the revenue.

But in any case, the decision is yours. You set the pace on how fast or how much you want to let the algorithm run your rates.

Data quality is the foundation

Even the smartest pricing algorithm is only as good as the data it receives. Clean, accurate, real-time data is essential. That is where integration matters. RMS and RoomPriceGenie work together seamlessly, syncing availability, bookings, and cancellations automatically. No double entry, no manual updates. When your foundation is solid, pricing becomes almost effortless. You can focus on strategy and guest experience while the technology handles hundreds of pricing decisions daily.

Strategies differ by property type

Dynamic pricing is not one-size-fits-all. Your strategy should reflect your market positioning. Budget properties typically focus on occupancy and volume. Mid-scale properties aim for a balance between Average Daily Rate (ADR) and occupancy. Luxury properties usually prioritize rate integrity and value. Automation supports these goals by applying rules that match your strategy.

Dynamic pricing isn’t just for hotels. Parks, campgrounds, and serviced apartments can benefit too. Longer stays amplify the impact of every pricing decision. The key is tailoring your approach to your property type and market and working with specialists to get it set up the way you want.

Planning ahead pays off

One surprising insight was about booking windows. Many operators assume early bookings should be discounted. In reality, early bookers are often willing to pay a fair or even premium rate. Setting your rates up 12 months ahead is ideal, especially for events announced far in advance. The further ahead you look, the more opportunities you can capture.

Loyalty is about value, not discounts

Another concern that Kateryna addressed is how dynamic pricing affects repeat guests. The answer is simple: loyalty should not mean eroding your ADR. Instead of keeping rates artificially low or the same year-on-year, use loyalty programs, perks, and targeted marketing to reward returning guests. Offer upgrades, early check-ins, or exclusive discounts through direct channels. Show value without sacrificing revenue.

Final thoughts

If there is one message I hope you take away, it is this: you must consider dynamic pricing strategies for your property, and with the right partner, it doesn’t need to be overwhelming, scary, or extremely resource-intensive.

Whether you run a boutique hotel, a holiday park, or a serviced apartment, dynamic pricing can help you compete, capture revenue, and save time. Manual pricing is too slow for today’s market. Every decision matters, and technology can help you make the right ones.

Thank you to everyone who joined us live. If you missed it, the full webinar is available on demand here.

And mark your calendar for episode three of Hospitality Learning Labs on 17 December, where we will dive into spa strategies with our partner Trybe.

Interested in seeing RoomPriceGenue in action? Get in touch here.