--- title: "Riding the Revenue Wave: How Dynamic Pricing Captures More Revenue" description: Dynamic pricing helps hotels ride market demand, optimize room rates, grow occupancy, and capture more revenue with the right price at the right time. image: https://luxepricing.com/hubfs/AI-Generated%20Media/Images/Surfer%20Balancing%20On%20Wave%20At%20Sunrise%20Beach.png --- [![LUXE Pricing](https://luxepricing.com/hubfs/luxe-white.svg)](https://luxepricing.com/) [![LUXE Pricing](https://luxepricing.com/hubfs/luxe-white.svg)](https://luxepricing.com/) - [Products](https://luxepricing.com/products-landing) - [HouseCount RMS](https://luxepricing.com/housecount-rms) - [LuxSell URS](https://luxepricing.com/luxsell-urs) - [What's Possible](https://luxepricing.com/whats-possible-togather) - [What's Possible with HouseCount](https://luxepricing.com/whats-possible-with-housecount) - [What's Possible with LuxSell](https://luxepricing.com/whats-possible-with-luxsell) - [Success Stories](https://luxepricing.com/success-stories) - [About Us](https://luxepricing.com/about-us) - [About Us](https://luxepricing.com/about-us) - [Core Values](https://luxepricing.com/core-values) - [Meet the Team](https://luxepricing.com/meet-the-team) - [Blog](https://luxepricing.com/blog) - Login - [HouseCount RMS](https://rm.luxepricing.com) - [LuxSell URS](https://upsell.luxepricing.com) - [Request a Demo](https://luxepricing.com/request-a-demo) # Riding the Revenue Wave: How Dynamic Pricing Captures More Revenue October 1, 2026 - by Ben Scholl ![](https://luxepricing.com/hubfs/AI-Generated%20Media/Images/Surfer%20Balancing%20On%20Wave%20At%20Sunrise%20Beach.png) - [Resources](https://luxepricing.com/blog) - Riding the Revenue Wave: How Dynamic Pricing Captures More Revenue Revenue management is a lot like surfing. Like the surfer catches waves, hotels seek to catch the invisible wave of guest pricing tolerance. The hotel’s surfboard is dynamic pricing. While maybe not quite as exhilarating as being in the water, dynamic pricing allows hotels to ride this wave. With fixed pricing, you may only capture a single moment of the wave as it passes over you. There are ups and downs that fixed pricing cannot ride. Understandably, at first dynamic pricing may feel like giving up control. Success will come with practice and experience just as the surfer honed since skills over hours spent at the beach. Luxe Pricing is proud to support its hotel partners in developing their surfing skills with House Count RMS which brings automation and customization to your dynamic pricing strategy. Dynamic pricing in action does not always look like hiking the rate and squeezing the rate for all its worth. Often, when first introducing this strategy at a property, they will experience a decrease in ADR while increasing occupancy and RevPAR overall. On the flip side of the coin, reducing the room rate does not necessarily mean sacrificing the bottom line or losing all profitability. In practice, it looks like this: historically a property sold rooms for $120 per night and for a given month sold 500 room nights. With dynamic pricing in place and software like House Count that can quickly pressure check the market tolerance, room rate might decrease to $99 (with guard rails in place to not drop below a desired threshold) nightly and sell 750 rooms in the same period. Rate has decreased within an acceptable limit, and the additional room sales bring in over 20% more revenue than the original rate yielded. Metaphorically, $120 is the crest of our wave which 500 guests were willing to pay. The fixed pricing captured them but failed to ride the wave to its end, missing 250 more potential guests. How do you get started? First, understand the price that you cannot afford to go below to set as your rate floor. What is your cost for cleaning and checking in that room? Second, you need good historical data. At the least, occupancy and rate data for the previous few years. Next, you need to start somewhere. Like a group of surfers waiting for a wave, a hotel’s competitive set are looking to catch the same waves as you. Looking at the comp set pricing is a great starting point. Watching and learning from their trends will help jump start your dynamic pricing strategy. But at some point, we want to break away from the pack. If we follow the group, we will only ever catch the same wave as them. There are other waves out there that aren’t passing over that group. Finding your pricing and booking pace rhythm, over time, will allow you to ride your own wave. Dynamic pricing is not without its challenges. Long time guests may react negatively at first to paying more than they are accustomed to. Likely, a guest may be upset less so that they are paying more for a room, but that new guests are paying less than they used to. Dynamic pricing also has an impact on the guest’s booking window. Shorter booking windows are common and can affect unprepared operations. The influx of new guests can put operational strain on Housekeeping and Front Desk to keep up if not staffed and trained to meet the increased demand. Keeping rates consistent across channels and tackling rate parity will become a new challenge compared to the set it and forget it mindset of fixed rates. Dynamic pricing helps hotels find the customer base they didn’t know they had. It can help grow occupancy and can help to increase revenue where occupancy is already strong. When using fixed rates, hotels only attract the subsection of guest who is happy to pay that rate at that time. Dynamic rates pressure tests the customer base and reach a greater variety of guests who are happy to pay a variety of rates. Reaching them with the right rate at the right time is key. Getting in the water is always a risk but with smart planning, consistent practice and utilization of the right tools, the risk can be mitigated. Luxe Pricing eases its parters into the surf and onto the board until they are confidently riding on their own. - Share this article - - - ##### About The Author ###### Ben Scholl Global Partnership Executive ![Search](https://luxepricing.com/hubfs/raw_assets/public/LuxePricing/images/search.png) ##### Categories - [All](https://luxepricing.com/blog) - [Hotel Revenue Management](https://luxepricing.com/blog/tag/hotel-revenue-management) - [Revenue Management](https://luxepricing.com/blog/tag/revenue-management) - [Global Partnership Executive](https://luxepricing.com/blog/tag/global-partnership-executive) - [Hotel Management](https://luxepricing.com/blog/tag/hotel-management) - [Pricing Strategy](https://luxepricing.com/blog/tag/pricing-strategy) - Recent Posts ![feature image](https://luxepricing.com/hubfs/cover-1.jpg) [Understanding the Hotel Booking Curve: A Quick Guide](https://luxepricing.com/blog/understanding-the-hotel-booking-curve-a-quick-guide) 3 May, 2025 ![feature image](https://luxepricing.com/hubfs/LasVegas.png) [Importance of Hospitality Revenue on the Las Vegas Strip: A Look at Two Large Operators in Las Vegas](https://luxepricing.com/blog/importance-of-hospitality-revenue-on-the-las-vegas-strip-a-look-at-two-large-operators-in-las-vegas) 6 January, 2025 ![feature image](https://luxepricing.com/hubfs/Revenue%20Last%20Blog.jpg) [The Future of Revenue Management: Key Concepts for Hoteliers](https://luxepricing.com/blog/the-future-of-revenue-management-key-concepts-for-hoteliers) 2 September, 2025 ## Newsletter Signup Get Hooked! 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All Rights Reserved. - [Privacy Policy](https://luxepricing.com/privacy-policy) ```json { "@context" : "http://schema.org", "@type" : "TechArticle", "author" : { "@type" : "Person", "name" : "Ben Scholl", "url" : "https://luxepricing.com/blog/author/ben-scholl" }, "dateModified" : "2026-10-01", "datePublished" : "2026-10-01", "description" : "Dynamic pricing helps hotels ride market demand, optimize room rates, grow occupancy, and capture more revenue with the right price at the right time.", "headline" : "Riding the Revenue Wave: How Dynamic Pricing Captures More Revenue", "image" : "https://20952835.fs1.hubspotusercontent-na2.net/hubfs/20952835/AI-Generated%20Media/Images/Surfer%20Balancing%20On%20Wave%20At%20Sunrise%20Beach.png", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://20952835.fs1.hubspotusercontent-na1.net/hubfs/20952835/luxe.svg" }, "name" : "Luxe Pricing", "url" : "https://luxepricing.com/" }, "url" : "https://luxepricing.com/blog/riding-the-revenue-wave-how-dynamic-pricing-captures-more-revenue" } ```