Feature Overview: Dynamic Pricing

Summary:

Dynamic Pricing automates rate adjustments based on occupancy and booking trends, helping parks maximize revenue. This article covers how it works, including incremental rate increases, booking window interactions, and reporting tools to track performance. Learn how to optimize your pricing strategy and make data-driven decisions to stay competitive.

Introduction

Dynamic Pricing automates rate adjustments based on demand, occupancy, and booking behavior, optimizing revenue while keeping you in control. 💰📊 Campspot’s tool allows precise rate planning, ensuring flexibility and competitive pricing. 🏕️

Dynamic Pricing in the Hospitality Industry

Used in airlines, hotels, and rental cars, Dynamic Pricing adjusts rates in real time. ✈️🏨 Campgrounds can apply the same strategy to:

• Maximize peak revenue by increasing rates with high occupancy. 📈

• Encourage off-peak bookings by lowering rates. 🏕️

• Reduce manual updates, freeing up time. ⏳

How Dynamic Pricing Works in Campspot

You can customize pricing rules based on:

• Occupancy thresholds – Increase rates as occupancy rises. 📊

• Booking window – Adjust rates based on how far in advance a booking is made. 📅

• Site type – Apply different rules to site categories. 🏕️

• Percentage or dollar adjustments – Increase rates by a set percentage or dollar amount. 💲

Customizing Dynamic Pricing

Below you will find examples of the different ways you can leverage this function to compliment your growth strategies.

• Incremental Rate Increases: Gradually increase rates as occupancy grows. 📈

  • 50-59% Occupancy = +5% 📊

  • 60-69% = +7%, 70-79% = +10%, 80-89% = +12%, 90-100% = +14%

  • These rules are not cumulative—each new threshold replaces the previous adjustment. For example, when 60% occupancy is reached, the rate increases by 7%, not 12%.

• Booking Window Adjustments: Set rate changes based on advance booking time. ⏳

  • Increase rates by 10% for bookings made 90+ days ahead.

  • Lower rates by 10% for last-minute (0-3 days) bookings. 🏕️

• Package Pricing Compatibility: 🎟️

  • Variable Rate Packages: Dynamic Pricing applies.

  • Fixed Rate Packages: Dynamic Pricing does not apply.

Cancellations & Adjustments

If cancellations drop occupancy below a set threshold, new reservations revert to the base rate until the threshold is met again. 🔄 Existing bookings keep their locked-in dynamic rate.

Dynamic Pricing helps campgrounds stay competitive and optimize revenue while maintaining control. With Campspot, operators can implement customized rate adjustments that align with market dem

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Most Common FAQ:

The FAQs below are organized into key sections to help you quickly find the answers you need:

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?

Yes! You can create incremental rate increases by setting up multiple Dynamic Pricing rules based on occupancy thresholds.

Example: A park operator wants to gradually increase rates as demand rises:

• 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

Each time a threshold is met, the next rule takes effect automatically.

Q: What is the most common Dynamic Rule used?

If you prefer a single rule instead of incremental increases, the most common setup is:

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

Booking Window and Dynamic Pricing Interaction

Q: How does the Booking Window impact Dynamic Pricing?

Dynamic Pricing allows you to define a Booking Window, ensuring rate adjustments align with demand based on how far in advance guests book.

Examples:

• Encouraging early bookings: Increase RV site rates by 10% for December stays once occupancy reaches 50%. The Booking Window would be set to apply the rule only if the reservation is made X to Y days before arrival.
• Last-minute fill strategy: Lower RV site rates for bookings made within 3 days of arrival to help fill empty spots. The rule would apply to reservations booked 0-3 days prior to arrival.

Dynamic Pricing and Package Pricing Rules

Q: How does Dynamic Pricing affect Package Pricing Rules?

Dynamic Pricing applies differently depending on the type of Package Pricing rule in place.

• Variable Rate Package Pricing: If this is enabled, Dynamic Pricing applies to the reservation.

  Example:

  • A 5% Dynamic Pricing increase is in effect.
  • A "Buy 6 Nights, Get the 7th Free" package also applies.
  • The first 6 nights reflect the increased rate, while the 7th night remains free.

• Fixed Rate Package Pricing: If this is used, Dynamic Pricing does not apply because the fixed rate overrides other adjustments.

  Example:

  • A Monthly Fixed Rate package is set at $500/month.
  • Even if Dynamic Pricing could increase rates by 5%, the rate stays at $500/month.

Cancellations and Dynamic Pricing Reporting

Q: What happens if cancellations drop occupancy below a pricing threshold?

If occupancy falls below a Dynamic Pricing threshold due to cancellations, new reservations will no longer receive the higher dynamic rate.

• Existing reservations keep their rate.
• New reservations will be booked at the current pricing until the occupancy threshold is met again.

Reporting and Dynamic Pricing

Dynamic Pricing is a powerful tool, but data-driven decisions make it even more effective. Campspot offers insightful reports to help you track performance.

Occupancy Reporting

Dynamic Pricing is based on Site Type occupancy, calculated as:

Total reserved nights ÷ Total available nights.

Example: 

• A Site Type has 10 sites.
• On April 4, 5 sites are booked → 50% occupancy.
• In April, 120 nights are booked out of 300 available → 40% occupancy.

Dynamic Pricing Revenue 

Want to see how Dynamic Pricing is impacting your revenue? These reports provide a detailed breakdown:

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

These reports show how much revenue was generated by Dynamic Pricing rules.

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