Be inspired to use Dynamic Pricing to increase your Revenues with ease.
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!
Dynamic Pricing: Setup New Variation
Dynamic Pricing by Site Type
Dynamic Pricing by Reservation
Below are four examples using Dynamic Pricing rules to achieve different revenue strategies. Where your strategy may not align with these examples, the information provided will provide more detail about this feature.
Each example will include a description of the strategy the rule will accomplish along with a screenshot of the New Variation form as it would be set up in Campspot..
The examples provided show how to do the following based on occupancy and time of the year:
- Example 1: Increase rates for the entire year
- Example 2: Increase peak season rates using multiple rules for the same period of time
- Example 3: Decreasing rates to accompany a marketing campaign to create business
- Example 4: Increase an Add-on if the booking is so many days prior to arrival
Strategy: For 2024, increase all Lodging base pricing by 10% once occupancy is 60% or greater, expiring 12/31/2024 available to be booked today.
|Rule Name||I want to save the rule in a way that is easy to identify in a long list of other rules.|
|Active Dates||For each example, a new Date Group was created. For this example, one was created for 01/01/24 – 12/31/24. This date range is the only period this rule will apply. If a guest stays 12/25/24 – 01/02/25, only the dates in 2024 will be eligible.|
|Site Types||Selecting the Lodging Site Types this rule applies to.|
|Expiration Date||This rule will expire at the end of 2024.**|
|Rate Change||I want to add 10 % to the base rate. The rate change is not incremental meaning once the threshold of 60% is met, the rates will increase one time by 10%.|
|If occupancy is 60 to 100%||As soon as occupancy hits 60%, I want the base price to increase.|
|As calculated among site types:||For this rule, I want to base the occupancy threshold off the performance of all my Lodging Sites so once they collectively reach 60%, the rate will increase for all.|
|And is booked 0 to 999 days prior to arrival.||I want my rates to increase through the end of next year. If I only enter 0 to 365 days, only the next 365 days would be impacted by the rule. 0 to 999 days ensures that my rates change for guests booking through the end of next and an allow me to reuse this rule for future years if I want.|
**NOTE: The Date Group assigned in Active Dates will set the tone for when this rule will apply. Being that this rule is meant to be available for all 2024 stay dates and can be booked anytime through 2024 an expiration date is not necessarily required.
Q: What if I want to reuse this same rule in 2025?
A: Simply change the rule name from “2024 Annual Rate_Lodging” to “Annual Rate_Lodging”, add a new Active Date Group (leaving the old ones for system performance and reference), and update the expiration date (if applicable).
Q: Why apply the rule to be “as calculated among site types” for the same Site Types as the Site Types impacted by the rule?
A: In this campground, each Site Type has different numbers of sites within each. If the rule is based off the most popular Site Type which has 2 sites, the rule will automatically kick in for all sites as soon as both of those sites are booked. For this example, I want to change rates based on the entire Lodging product, but this can be easily changed depending on the strategy.
Strategy: Increase rates for peak season: Victoria Day to Labour Day. RV rates to increase 10% once my top performing Site Types reach an occupancy of 50%. Lodging rates to increase by $10 once occupancy has reached 40% for all Lodging and then another $10 for just my top performing cabins when they reach 61% or more.
This example will require the addition of 1 rule for RV sites and 2 rules for Lodging.
Lodging 2: You will notice that the dollar amount is $20, not $10. When this rule kicks in, Campspot will not add the rules together so in order to increase by $10 once the Top Lodging sites reach 50% and then again once reaching 75%, this second rule would need to increase the Base rate by $20.
Q: What happens if multiple rules overlap each other? (Both Example 1 and Example 2 are active at the same time)
A: Dynamic rules look at the Date Group to define periods of time. If a reservation qualifies to be defined by more than one Date Group, Campspot will select the more narrow Date Group. In this example, "2024 Summer Season."
Strategy: To be very competitive with local campgrounds, offer a flat rate for all RV sites for the Early Winter season if reservation is booking by 12/31/2023 for days of up to 50% occupancy. Tie this to a Marketing Campaign to for my guests to “Escape the dreary winter! Stay with us in any RV site for a flat $60 January – March.”
Q: Why create a Dynamic Rule for this offer?
A: This same strategy can be accomplished using Campspot’s Promotion / Discount setup, but I want to publish this rate online, so my guests see it regardless of having received a notification of my lowered rates. When shopping campground to campground, I can grab more market share by publishing my lowered and very competitive rate online.
Strategy: My Golf Carts are sold out year over year for the summer months. I want to increase the price of this Add-on by $20 per day once 50% of my golf carts have been reserved and the arrival day is 7 days out.
For more information on Dynamic Pricing, refer to the following: