Dynamic Pricing Rules help parks to maximize Site Revenue through Campspot. Below, learn best practices and setup tips for these Rules.
What is Dynamic Pricing?
Dynamic Pricing gives parks the ability to change the base rate of a Site Type based on occupancy levels and time of booking. Typically these Rules are setup to help parks increase their revenue at times when Sites are in higher demand. Rules can be setup to either increase or decrease pricing depending on park needs.
Dynamic Pricing Rules are setup through Rules > Pricing > Dynamic Pricing.
What kind of parks are using Dynamic Pricing?
On average, parks using Dynamic Pricing have 87% transient reservations, however, these rules can be used for parks with any amount of transient bookings.
Parks that use Dynamic Pricing also tend to use other revenue increasing features at a higher rate:
- 92% of parks using Dynamic Pricing also use a Lock Site Fee, compared to 71% of all active parks using a Lock Site Fee.
- Parks using dynamic pricing have an average of 58 Daily Add-ons per park, compared to an average of 19 Daily Add-ons per park for parks not using Dynamic Pricing.
Why should I consider using dynamic pricing?
Parks on Campspot that are using Dynamic Pricing rules have a 191% higher average revenue compared to parks not using these rules.
What are the most commonly used rules for Dynamic Pricing?
The most common rules used have rate increases in the following increments:
+20% for 90-100% occupancy is the single most common rule. However, increases can range anywhere from 0.40% to 115%.
90% of all dynamic pricing Rules are setup as percentage increase on rates. Flat Dollar amount increases are 6% of all rules, and only 4% of rules are for decreases in rates.
Most rules apply 0-999 days in advance or 0-365 days in advance, however some parks do implement a change in rules from 61+ days in advance to 0-60 days in advance.
Visit this support article to learn more about the elements that are required when building a Dynamic Pricing.
Example Dynamic Pricing Rules
The below Rule examples are commonly used and recommended when first getting started.
Cabins and RV Sites –
- 50-59 Occupancy = +5% rate increase
- 60-69 Occupancy = +7% rate increase
- 70-79 Occupancy = +10% rate increase
- 80-89 Occupancy = +12% rate increase
- 90-100 Occupancy = +14% rate increase
The clip below shows the creation of a 14% rate increase when one specific Site Type is at 90-100% occupancy.
Tip: Dynamic Pricing Rules can be setup to base occupancy percentages on multiple Site Types and can apply to multiple Site Types. The example below only uses one Site Type.
This video from our support site shows an additional step-by-step example of creating a Dynamic Pricing Rule.
How does Dynamic Pricing affect Package Pricing Rules?
If Variable Rate Package Pricing is setup and can apply to a reservation, Dynamic Pricing Rules will also apply to the reservation.
Example: Dynamic Pricing Rule applies a 5% rate increase and a Buy 6 Nights Get The 7th Night Free rule also applies. The nightly price of the 6 nights have the 5% rate increase applied and the 7th night of the reservation will be free.
If Fixed Rate Package Pricing is setup and can apply to a reservation, Dynamic Pricing Rules will not apply to the reservation as the fixed rate will 'override' the other rate changes.
Example: A Monthly Fixed Rate package at $500/month will remain at $500/month even if a Dynamic Pricing Rule could increase the rate by 5%.
Reporting and Dynamic Pricing
To view the Occupancy numbers being used for your Dynamic Pricing Rules, you can download and view the Daily Revenue and Occupancy by Site Type report for the specific dates you want to see. The Total Occupancy Percent on this report is the same occupancy calculation used for Dynamic Pricing. Any active Admin Holds are counted as occupied nights in the Total Occupancy Percent number.
Dynamic Pricing Revenue
To view your Dynamic Pricing Revenue data you can download and view the Dynamic Pricing Revenue by Reservation report or the Dynamic Pricing Revenue by Site Type report.
The Dynamic Pricing Revenue by Site Type report includes Package Discounts and this can result in negatives amounts of Dynamic Revenue even if negative Dynamic Pricing rules do not exist. Negatives may show because of the highly discounted Package rates that typically exist for stay length based discounts such as monthly or weekly pricing.
If you would like to exclude Package Discounts and only see how much Revenue was generated from positive Dynamic Pricing Rules, it is recommend that you view the Dynamic Pricing by Reservation report in CSV version and filter out any negative amounts.