Dynamic Pricing: Rule FAQ

Find answers to the most commonly asked question on Dynamic Pricing rules empowering you to enhance your Revenue Strategy effectively.


Campspot's Dynamic Pricing feature enables strategic rate adjustments based on occupancy and booking time, offering a versatile tool for revenue optimization. With a potential revenue boost of 191%, this rule proves highly effective in maximizing income.

Most Common FAQ:

The FAQ below are organized for ease of use by these sections:

  1. Introduction to Dynamic Pricing
  2. Understanding Incremental Rate Increases
  3. Booking Window and Dynamic Pricing Interaction
  4. Dynamic Pricing and Package Pricing Rules
  5. Cancellations and Dynamic Pricing Reporting

Introduction to Dynamic Pricing

Q: What is Dynamic Pricing?

Dynamic Pricing automates rate changes based on occupancy and booking time, offering flexibility for strategic revenue adjustments.

Q: Why should I consider using dynamic pricing?

Parks using Dynamic Pricing rules experience a 191% higher average revenue, showcasing its effectiveness in maximizing income.

Understanding Incremental Rate Increases

Q: Can Dynamic pricing be increased incrementally?

  • By setting up multiple rules, you can create incremental rate increases manually, adjusting prices based on occupancy thresholds.
  • Example: A park operator wants to increase the prices of the most popular sites by setting various occupancy thresholds to incrementally increase rates as demand increases and inventory decreases:
    • 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

Once an occupancy threshold is met, the next rule kicks in.

Q: What is the most common Dynamic Rule used?

If you are not interested in setting multiple rules for that incremental increase, the most common single rule is to:

  • Increase the base price 20% when occupancy reaches 90-100%

Booking Window and Dynamic Pricing Interaction

Q: How does Booking Window come into the picture?

  • Dynamic Pricing setup includes defining the Booking Window, allowing precise rate planning based on days prior to arrival.
  • Example: You want to increase RV rates through next December by 10% once occupancy reaches 50%. The part of the Dynamic Pricing new variation rule form, "and is booked __ to __ days prior to arrival" would be used to define the Booking Window.
  • Example: You want to lower RV rates to fill empty sites for any guest booking last minute, 3 days prior to arrival. The rule would use 0 - 3 days prior to arrival.

Dynamic Pricing and Package Pricing Rules

Q: 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%.

Cancellations and Dynamic Pricing Reporting

Q: What if I have a handful of cancellations? The occupancy % falls below the threshold for the rule to kick-in. Will new reservations have the higher rate or the original base rate?

Until the occupancy threshold is met again, the rule will not apply to new reservations. Existing reservations maintain the dynamic "new" rate.

Reporting and Dynamic Pricing

While your knowledge of the park is invaluable, leveraging performance data can elevate your strategy beyond intuition. Campspot offers robust resources to support your decision-making with insightful data.

Occupancy Reporting

Determine site occupancy with a simple yes or no calculation. Campspot bases Dynamic Pricing on Site Type performance, calculating occupancy as the number of reserved nights divided by the total available.

Example: For a Site Type with 10 sites, if 5 were booked on April 4, the occupancy was 50%. In April, with 120 nights booked out of 300 available (30 nights at 10 sites per night), the occupancy was 40%.

Check out this report to dive into your park's performance:

Dynamic Pricing Revenue 

Maximize your understanding of Dynamic Pricing's impact with dedicated reports:

  1. Dynamic Pricing Revenue by Reservation report
  2. Dynamic Pricing Revenue by Site Type report

These reports will provide performance detail on how your Dynamic Pricing rules perform including the amount of money the rules impact.

Negative Dynamic Pricing Results?

If you utilize Dynamic Pricing to also offer lower rates based on seasonality, the Dynamic Price Impact may appear as negative. This aligns with your strategy, showcasing effectiveness. Negative results may also occur with package rule discounts or length of stay discounted rates, reflecting specific business strategies.

New to Dynamic Pricing in Campspot? Use this article along with the following articles to get the best understanding of how this feature can increase your bottom line!

Common Reporting:

Dynamic Pricing by Site Type

Dynamic Pricing by Reservation