Static pricing means predefined seasonal and day-of-week rates that change infrequently. Dynamic pricing means adjusting rates as demand and booking pace change. Both can work—the key is knowing when each is appropriate.
Glossary definition
For a short definition and examples, see Dynamic Pricing.
1) When static pricing works well
Static pricing can be enough when:
- demand is stable and predictable;
- there are few events or compression periods;
- your channel mix is simple and doesn't shift much;
- you have limited time for analysis and execution.
Even then, you still need a minimal correction process for clear signals (pickup changes, cancelled groups, unexpected events).
2) When dynamic pricing is the better choice
Dynamic pricing becomes close to essential when:
- booking windows are shorter and more volatile;
- you have clear peaks (weekends, holidays, events);
- competitor context moves quickly;
- demand shifts by segment (leisure vs business).
Real-time inputs matter here. In Sigma Revenue, that's covered by Real-time Data.
3) A simple framework: when to change the rate
Ask three questions for a specific date:
- How is the date building? (pickup vs expected)
- What's the context? (events, seasonality, comps)
- What's the risk? (how sensitive is demand to +X%)
Then make a small move and check the impact on the next review. This is dynamic pricing done with discipline.
4) Guardrails that prevent dynamic pricing from becoming chaos
The most common reason dynamic pricing “doesn't work” is a lack of structure. Minimum guardrails include:
- Min and max rates (by season / room type).
- Step size (small % changes).
- Review cadence (for example, twice per week).
- Peak rules (min stay, CTA/CTD when needed).
If you want automation with control, Autopilot can execute within your rules.
5) How to move from static to dynamic (without shocking the team)
- Start with only 10–20 key dates (next 30–60 days).
- Move in small steps and measure the outcome.
- Add peak-night rules before pushing aggressively.
- Expand to more dates once the cadence becomes routine.