Dynamic pricing

Dynamic pricing means a rate is not fixed but moves with conditions. Instead of one price all season, the property raises rates when demand is strong — peak weekends, holidays, events, near-full occupancy — and lowers them to fill quiet periods or last-minute gaps. The inputs typically include current and forecast occupancy, how far ahead the booking is (lead time), day of week, seasonality, local events and competitor rates. The goal is to sell each unit at the highest price the market will bear on that date, lifting revenue without necessarily raising average occupancy. It can be run with manual rules or with algorithms that recompute prices continuously. For campgrounds, dynamic pricing is newer than in hotels but increasingly relevant: peak-summer and school-holiday demand is highly concentrated, so charging the same rate in August as in May leaves revenue on the table.