What Is Dynamic Pricing?
Dynamic Pricing adjusts the upsell supplement based on how easy or hard it is to sell a better room.
Think of it like this:
When demand is low, upgrades should be cheaper to encourage upsells
When demand is high, upgrades should be more expensive (or close to full price)
Dynamic Pricing makes sure upgrades are:
The Two Ways to Use Dynamic Pricing for Rooms
UpsellGuru offers two different Dynamic Pricing models to calculate upsell supplements:
USG Dynamic Pricing (Occupancy-based)
Rate Shopper Dynamic Pricing (Supplement-based)
Both use occupancy logic — the difference is how the minimum price is calculated.
Option 1: USG Dynamic Pricing (Occupancy-Based)
With this option, you define a minimum and maximum price range for upgrades.
Example:
Low occupancy → wider range (lower minimum price)
High occupancy → higher minimum price
Hotel setup:
Minimum: €50
Maximum: €100
Dynamic behavior of the bidding range:
Best for:
Hotels with stable pricing between room types
Hotel teams who want full control over pricing limits
Predictable and consistent pricing behavior
Option 2: Rate Shopper Dynamic Pricing
With this option, upgrade prices are calculated automatically using your live room rates.
The system looks at the price difference between room types
This difference becomes the maximum upgrade price
The minimum price is then adjusted based on occupancy
Example:
Best for:
Hotels with frequently changing room rates
Properties with fluctuating price gaps between room types
Teams who prefer automated pricing with minimal setup
Which Option Should You Use?
- Choose Occupancy-Based Pricing if you want control and stability
- Choose Rate-Based Pricing if your pricing is dynamic and frequently changing
Both options ensure your upgrade prices stay competitive and aligned with demand.
Dynamic Pricing for Extras: Early Check-in & Late Check-out
Dynamic Pricing can also apply to Early Check-in (ECI) and Late Check-out (LCO), when using Rate-Based Pricing.
- Prices are calculated as a percentage of the room rate
- Automatically adjusts based on availability and daily rates
This ensures fair and flexible pricing for partial-day services.
Dynamic Pricing helps you:
Increase upsell revenue
Stay competitive with real-time demand
Reduce manual pricing adjustments
It’s a smart, automated way to offer the right upgrade price at the right time. Please reach out to support@upsellguru.com to enable this.