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 enables you to compete effectively in your local market while minimizing the time spent on pricing adjustments. By leveraging actual booking performance data, you can ensure your property remains competitively priced throughout the year.

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 will see an empty state. Click "Get started" to launch the guided setup process.

Step 2: Choose Your Tier (Category)

Select one of three categories that defines which group of similar properties you want to compete with:

  • Budget: Priced like the cheapest approximately 15% of similar properties in your area
  • Comfort: Priced around the average of similar properties
  • Premium: Priced like the top approximately 15% of similar properties in your area

If sufficient data is available for your property, Holidu highlights the best-fit category with a "Recommended for you" badge.

Note: "Similar properties" are defined as properties in your same focus region with the same maximum occupancy, based on completed and non-cancelled Holidu Homes bookings. This comparison uses actual booking data, not listed prices and not other platforms like Airbnb or Booking.com. The comparison group is fixed and cannot be manually adjusted.

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 adjust this curve using three primary controls:

  • Price level: Shifts the entire curve up or down to set your overall nightly rate
  • Min/max limits: Your hard floor and ceiling values — prices will never fall below or exceed these thresholds
  • Seasonal effect (Advanced settings): Controls how much prices vary between seasons, ranging from flat year-round pricing to a more pronounced seasonal curve

Step 4: Set Your Season Rules

The guided setup automatically groups your 14 months into season types (Peak, High, Mid, Low) based on local demand patterns. For each season type, you can set:

  • Minimum stay requirements
  • Weekend markup percentages
  • Preferred check-in and check-out days

These rules apply consistently to every date within each season type, simplifying your pricing management.

Step 5: Preview and Apply

Before any changes take effect, you will see a preview comparing your new pricing against your current nightly rates. Review this comparison carefully, then click "Apply prices" to implement the new pricing structure.

Important: Applying the guided setup overwrites your existing prices and season settings, including any manual changes you have made to individual days. You will see the new versus current prices before confirming, and you can still fine-tune any date afterwards if needed.

Step 6: Adjust Anytime

Nothing is permanent or locked in. You can reopen Dynamic Pricing whenever you like to re-adjust your price level, seasonal effect, or limits. You can also edit specific dates, prices, and minimum-stay rules directly in the calendar view at any time.

Keeping Your Prices Current

Weekly Data Refresh

Holidu refreshes the underlying booking data weekly, so your Similar Properties comparison gradually reflects what is actually happening in your market. This ensures your pricing recommendations remain relevant and competitive.

Price Recommendations

As demand shifts in your region, Holidu surfaces price recommendations that you can apply with one click. This keeps your pricing strategy aligned with real-time market conditions without requiring manual analysis.

Automatic Price Optimizations

If you prefer a hands-off approach, you can turn on "Enable automatic price optimizations." When enabled, Holidu will adjust your price level automatically within your set limits. Every change remains visible in your price history, giving you full transparency into pricing adjustments.

Flexibility and Control

You are never locked into Dynamic Pricing. You can return to manual pricing at any time if your needs change. If the feature is not visible in your account, it may indicate that there is not yet enough booking data available in your region.

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 will see a clear comparison of your new versus old prices before confirming. You can edit individual days manually at any time after applying the new pricing.

What are the pricing seasons (Peak, High, Mid, Low)?

These are demand-based groups that organize your year into pricing periods. Peak represents the highest demand period, while Low represents the quietest season. You can adjust the settings for each season type before your final prices are applied.

Can I still control my minimum stay requirements?

Yes. Dynamic Pricing suggests minimum stay rules based on demand patterns, but you can edit them manually at any time to match your property management needs.

Can I adjust my prices later?

Yes. You can return to the editing mode at any time to shift your overall price level or change your price limits. You can also manually edit specific dates and price ranges just as you would with traditional pricing management.

What does Budget, Comfort, or Premium mean?

These categories define which group of similar properties you want to compete with. Budget positioning prices your property like the cheaper end of your local market. Comfort positions it around the average market rate. Premium positions it like the top-end properties in your area.

Are cleaning fees or taxes included in these prices?

No. The suggested prices are nightly base rates only. Cleaning fees, taxes, and any other charges are managed separately and are not affected by the Dynamic Pricing tool.

What if I want to go back to managing pricing manually?

You can always return to manual pricing management. The Price Curve generated by Dynamic Pricing is a starting point, not a permanent lock-in. You retain full control over your pricing strategy.

Is the Minimum Price the absolute lowest I will ever receive for a booking?

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 when discounts are applied.

Will this change the price of bookings I have already received?

No. Your existing bookings are completely unaffected. Any reservation that is already confirmed remains at the 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 price range is based on actual completed bookings within Holidu's own portfolio, not listed or asking prices on other platforms. Some difference from other booking sites is expected, as actual booking prices often differ from published rates.

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. You fine-tune your own pricing level within the selected category using the Price Level slider, allowing you to position yourself precisely within your chosen tier.

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 property's capacity, lower the price level in the wizard accordingly. The pricing algorithm is calibrated for your full capacity, so adjusting the price level ensures accurate positioning.

Summary

Dynamic Pricing is designed to remove the complexity of seasonal pricing management while keeping your rates competitive with your local market. By automating price adjustments based on real booking data, you can focus on other aspects of your hosting business while maintaining optimal pricing throughout the year. Whether you choose automatic optimizations or manual fine-tuning, Dynamic Pricing provides the flexibility you need to succeed in today's competitive short-term rental market.

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