Hoteliers to find value in dynamic pricing

Some in the hotel industry have found that it’s easier to adapt to changes in demand when taking a dynamic approach to room pricing, Hotel News Now’s Terence Baker reports.

One challenge of dynamic pricing is that improvements in technology have added transparency to pricing. “Guests believe this gives them more control over the rates they pay, but the complexity of the market actually makes it even more of a quagmire to wade through,” Baker writes.

But sources said dynamic pricing is not a shot against online travel agencies.

“As long as hotels are maintaining hotel rate parity, I don’t think that our hotels will have a chance of competing against OTAs as a search tool,” said Amy Jagenow, VP of revenue management at Yotel.