Dynamic Pricing allows you to automatically adjust rates based on demand, availability, or booking timing. When set up thoughtfully, it can help increase revenue during busy periods while encouraging bookings during slower times.
Below are common dynamic pricing strategies used by rental and tour operators.
Example 1: Resource-Based Demand Pricing
Rule: Increase prices by 10% when inventory is 75% booked.
Why this is good: When demand is high, this will ensure that your last few rentals are booked at a premium. This is what hotels and airlines use as a strategy to maximum revenue with capacity is limited.
How it's setup in BookingCentral: Create the rule to use High Demand Adjustments, and include a 10% increase when Booked % is 75%.
Possible Variations:
- Adjust increase to a higher percentage or add a fixed rate increase (e.g. $75).
- Adjust your booked percentage based on your inventory count.
Example 2: Advance Booking Incentive
Rule: Offer a 5-10% discount for bookings made 30+ days in advance
Why this is good: Offering a discount for advanced bookings encourages early bookings, gives you guaranteed revenue, and allows you to better forecast demand for future rentals.
How it's setup in BookingCentral: Create the rule to use Low Demand Adjustments, and include a Booking Lead Time that stops 30 days before activity. This will apply the discount on bookings that are reserved 30+ days in advanced.
Possible Variations:
- Lead Time is increased to 45 days or 90 days
- Discount applies to only certain days of the week (e.g. all days excluding Saturdays)
- Discount percentage is 5% or flat rate discount of $50
Example 3: Peak Day & Weekend Premiums
Rule: Increase prices by 15% on Saturdays and Sundays.
Why this is good: The demand for a rental is always higher on weekends. Customers expect to pay more at these peak times. This allows you to increase your revenue without hurting demand.
How it's setup in BookingCentral: Create the rule to use High Demand Adjustments, and include a 15% increase in price on Saturdays and Sundays. Use the Custom option in the settings to select your days.
Possible Variations:
- Include Friday as another Peak Day
- Discount is a percentage can be lowered to 10% or increased to 20%
Example 4: Last-Minute Discounts
Rule: Reduce price by $50 if a rental is still available within 1 Day of rental start.
Why this is good: It's better to earn something than nothing! Last-minute discounts can fill empty rentals and attract 'on the spot' renters.
How it's setup in BookingCentral: Create the rule to use Low Demand Adjustments, and include a Booking Lead Time that starts 1 day before activity. This will apply the discount on bookings that are reserved 1 day in advance.
Possible Variations:
- Lead Time is increased to 2 days or 3 days
- Discount applies to only certain days of the week (e.g. all days excluding Fridays/Saturdays)
- Discount is a percentage such as 5-10%
Choosing the Right Pricing Rule
Start with small adjustments and monitor results. Over time, refine your rules based on booking patterns.
Keep in mind:
Prices should remain competitive
Large increases can reduce conversions
Small changes (5–10%) often work best initially
The goal is to:
increase revenue during peak demand
fill slower time slots
balance availability
automate pricing updates
Dynamic pricing works best when tested and adjusted over time based on your market and booking trends.
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