Dynamic Pricing
What is Dynamic Pricing?
Dynamic Pricing is a powerful tool designed to help you build and maintain a comprehensive 14-month pricing strategy automatically. Instead of manually creating and adjusting seasons throughout the year, Dynamic Pricing uses real booking data from similar properties in your region to establish competitive rates and keeps them aligned with market demand over time.
This feature eliminates the guesswork from pricing by leveraging actual market data, allowing you to focus on providing excellent hospitality while your rates stay competitive and optimized for maximum revenue.
Why Use Dynamic Pricing?
- Data-Driven Decisions: Pricing is based on completed bookings from properties similar to yours, not guesswork or competitor listings.
- Time-Saving: Automate your entire year's pricing strategy instead of manually adjusting seasons month after month.
- Market Alignment: Stay competitive with similar properties in your region while maximizing your earning potential.
- Flexibility: You maintain full control—adjust prices anytime or return to manual pricing whenever you prefer.
- Automatic Updates: Optional automatic price optimization keeps your rates current as market demand shifts.
How to Set Up Dynamic Pricing
Step 1: Open Dynamic Pricing
Log in to your Holidu Host Account and navigate to the Pricing tab. If you have a new listing or no seasons configured yet, you'll see an empty state. Click "Get started" to launch the guided setup wizard.
Step 2: Choose Your Pricing Tier
Select one of three tiers to define which group of similar properties you want to compete with:
- Budget: Priced like the cheapest approximately 15% of similar properties in your area. Ideal for attracting price-conscious travelers.
- Comfort: Priced around the average of your local market. A balanced approach that attracts steady bookings.
- Premium: Priced like the top approximately 15% of similar properties in your area. Best for high-quality properties with exceptional amenities.
If sufficient booking data is available for your property, Holidu will highlight the best-fit category with a "Recommended for you" badge to guide your decision.
Note: "Similar properties" refers to properties in your same focus region with identical maximum occupancy, based on completed, non-cancelled Holidu Homes bookings. This comparison group is fixed and cannot be manually adjusted. It is based on actual booking data from your platform, not listed prices on other platforms like Airbnb or Booking.com.
Step 3: Review Your Price Curve
Once you select a category, a suggested 14-month price curve appears based on seasonality and local demand patterns. You can customize this curve using three main controls:
- Price Level: Shifts your entire price curve up or down to set your overall nightly rate within your chosen tier.
- Min/Max Limits: Sets your hard floor and ceiling prices—your rates will never go below the minimum or above the maximum you specify.
- Seasonal Effect (Advanced Settings): Adjusts how much your prices fluctuate between seasons, from completely flat year-round pricing to a more pronounced seasonal curve.
Step 4: Set Your Season Rules
The guided setup automatically organizes your 14 months into season types based on local demand patterns:
- Peak Season: Highest demand period
- High Season: Strong demand
- Mid Season: Moderate demand
- Low Season: Quietest period
For each season type, configure:
- Minimum stay requirement
- Weekend markup percentage
- Check-in and check-out day restrictions
These settings apply consistently to every date within each season type, ensuring uniform rules across similar demand periods.
Step 5: Preview and Apply
Before your new pricing takes effect, you'll see a detailed preview comparing your new nightly rates against your current rates side-by-side. Review this comparison carefully to ensure the changes align with your business goals. Once satisfied, click "Apply prices" to activate your Dynamic Pricing strategy.
Important Warning: Applying the guided setup overwrites your existing prices and season settings, including any manual adjustments you've made to individual days. The preview clearly shows new vs. current prices before you confirm, giving you a final opportunity to review the changes. After applying, you can still fine-tune any specific date, price, or minimum-stay rule directly in the calendar.
Step 6: Adjust Anytime
Nothing is permanently locked in with Dynamic Pricing. You have complete flexibility to:
- Reopen Dynamic Pricing anytime to re-adjust your price level, seasonal effect, or min/max limits
- Edit specific dates, prices, and minimum-stay rules directly in the calendar
- Return to fully manual pricing if you prefer
Keeping Your Prices Current
Automatic Updates and Recommendations
Holidu refreshes the underlying booking data from similar properties weekly, so your comparison group gradually reflects what's actually happening in your local market. As demand patterns shift throughout the year, Holidu surfaces price recommendations you can review and apply with a single click.
Enable Automatic Optimization
If you'd rather not manually review recommendations, enable "Automatic price optimizations." When activated, Holidu will automatically adjust your price level within your set minimum and maximum limits as market conditions change. All adjustments remain fully visible in your price history, so you always know what changed and why.
Return to Manual Pricing Anytime
You're never locked into automation. Disable automatic price optimizations at any point to return to manual control, or switch back to fully manual pricing if the feature no longer suits your needs.
Data Availability
If Dynamic Pricing isn't visible in your account, it may be because there isn't yet sufficient booking data in your region to generate reliable pricing recommendations. The feature will become available once enough comparable booking data accumulates.
Frequently Asked Questions
Will my existing prices be overwritten?
Yes. Applying Dynamic Pricing replaces all your current prices and settings, including any manual adjustments to individual days. You'll see a clear comparison of your new vs. old prices before confirming, and you can edit individual days manually at any time afterwards.
What are the pricing seasons (Peak, High, Mid, Low)?
These are demand-based groups that organize your year into distinct pricing periods. Peak represents the highest demand season, High is strong demand, Mid is moderate demand, and Low is the quietest season. You can adjust the settings for each season type before your final prices are applied, and you can modify them anytime afterward.
Can I still control my minimum stay requirements?
Yes. Dynamic Pricing suggests minimum stay rules based on seasonal demand, but you retain complete control. Edit these rules manually at any time for any season or specific date.
Can I adjust my prices after setup?
Yes. You can return to the Dynamic Pricing editing mode anytime to shift your overall price level, change your price limits, or adjust your seasonal effect. You can also manually edit specific dates and prices directly in the calendar as before.
What does Budget / Comfort / Premium mean?
These pricing tiers define which group of similar properties you want to compete with. Budget means your prices align with the lower end of your local market, making your property attractive to budget-conscious travelers. Comfort means prices around the market average, offering balance. Premium means prices align with the top-end properties in your area, suitable for higher-quality offerings.
Are cleaning fees or taxes included in these prices?
No. The suggested prices represent nightly rates only. Cleaning fees, taxes, and any other additional charges are managed separately and are not affected by Dynamic Pricing. These fees remain under your independent control.
What if I want to return to manual pricing?
You can always do that. Dynamic Pricing provides a suggested price curve as a starting point, not a permanent lock-in. Switch back to manual pricing whenever you prefer to manage all rates independently.
Is the Minimum Price the absolute lowest rate I will receive?
No. The Minimum Price applies to your nightly base rate only. If you have active discounts (such as a 10% Weekly Discount or a 15% Last-Minute deal), these are calculated on top of your nightly rate. Therefore, the final price a guest pays could be lower than your Minimum setting due to these applied discounts.
Will Dynamic Pricing change the price of bookings I've already received?
No. Your existing confirmed bookings are completely unaffected. Any reservation that is already confirmed remains at the exact price it was booked at. Dynamic Pricing only updates rates for nights that are currently available and unbooked.
Why don't the similar properties' prices match what I see on Airbnb or Booking.com?
The pricing range is based on actual completed bookings within Holidu's own portfolio, not listed or asking prices on other platforms. This means you're comparing real revenue data rather than advertised rates. Some difference from other platforms is expected and normal.
Can I adjust the comparison area or radius used for the Price Curve?
No. The comparison area (your focus region) is fixed and cannot be manually adjusted. Instead, you fine-tune your own competitive positioning within your selected tier using the Price Level slider.
How does Dynamic Pricing handle extra-guest surcharges?
Dynamic Pricing prices based on the full number of adults your property accommodates. If you charge a base rate for fewer adults than your total capacity (for example, pricing for 4 adults in a 6-person property and charging extra for the additional 2 guests), adjust your price level downward in the wizard accordingly. Dynamic Pricing is calibrated for your full occupancy capacity.
Best Practices for Using Dynamic Pricing
Start with the Recommendation
If Holidu highlights a tier as "Recommended for you," that's based on your actual booking data. While you can choose differently, the recommendation typically represents your optimal market position.
Monitor Price History
Keep track of your pricing changes and their impact on bookings. Use this data to refine your price level and seasonal effect settings over time.
Balance Automation with Control
Automatic price optimization is convenient, but review your price history regularly to ensure the adjustments align with your business goals and property characteristics.
Fine-Tune for Special Circumstances
Use manual adjustments for special events, local holidays, or unique situations that might not be reflected in the standard price curve.
Review Seasonality Settings
Ensure your seasonal effect matches your property's actual booking patterns. Adjust if you notice demand peaks that don't align with the suggested curve.
Getting Started Today
Dynamic Pricing is designed to save you time while optimizing your revenue. Start by visiting the Pricing tab in your Holidu Host Account and clicking "Get started" if you see the setup prompt. If you have questions about your specific market or property, refer to the FAQs above or explore the feature's built-in guidance.
Remember: you maintain full control at every step. Use Dynamic Pricing as much or as little as you prefer, and return to any pricing strategy that works best for your property and business goals.
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