Pricing Strategy
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      1. RoomPriceGenie Knowledge Base
      2. Pricing Strategy

      Understanding How Pricing Strategy Settings Work Together

      This article provides a comprehensive overview of how the different pricing strategy settings interact and influence final room prices.

      RoomPriceGenie offers flexible pricing strategies to help hoteliers customise their revenue management approach. While individual settings allow precise control, understanding how they interact gives you the confidence to shape your overall pricing strategy effectively.

      1. Foundational Settings

      These are the foundational elements that influence your daily rates:

      • Base Price
        This is the starting point. RoomPriceGenie uses your base price as a reference and adjusts up or down depending on demand and strategy settings.

      • Min and Max Prices
        These act as boundaries. No matter how high or low the demand is, your prices will stay within this range.

      2. Dynamic Demand Response

      RoomPriceGenie adjusts prices according to market behaviour. This is our Market Factor (Market Intelligence), reflecting the market dynamics around your property. Rather than comparing specific prices of competitors, we analyse how pricing behaviour changes across your area as a whole; this will be affected by your destination's seasonality, events, and local demand patterns. This creates a market index, which is then used to adjust your pricing accordingly.

      3. Strategy Settings: Your Personal Style of Pricing

      This is where you fine-tune how aggressive or conservative your pricing should be:

      • Occupancy Strategy
        Different accommodations have varying needs and strategies. To accommodate this, we have built a lot of flexibility into the RoomPriceGenie algorithm. The features Target Occupancy, Median Booking Window, and Aggressiveness determine how swiftly the system responds to new demand signals. They dictate the extent to which prices fluctuate based on your hotel's occupancy levels. 
      • Day-of-Week Adjustments
        You can set different base prices or modifiers for each day (e.g., higher on Fridays and Saturdays). This lets you reflect weekly demand patterns.
      • Monthly Adjustments
        The Monthly Adjustments can help you determine and modify the months of the year when you need to be more or less costly than the hotels your Market Intelligence represents. They are also used to illustrate seasonality.
      • Yielding Tags
        This adjustment renders prices more dynamic by evaluating the demand for a specific room category and modifying prices accordingly.
      • Lead Time Adjustments
        Lead time adjustments allow you to make pricing changes in percentage terms, solely based on the time remaining until arrival. This enables using strategies such as offering lower prices for early bookers, for example. 

      4. Special Rules: Events, Seasons, Manual Overrides

      You can always override or fine-tune with:

      5. How It All Comes Together

      RoomPriceGenie takes your base price and applies each layer in the following rough order:

      1. Base Price

      2. Market Factor

      3. Occupancy/Pickup Factor

      4. Strategy Settings (Day-of-the-Week, Monthly, Lead Time, Yielding Tags Adjustments)

      5. Special Rules (Bulk Edits, Manual Overrides, Percent Adjustments)

      6. Min/Max Caps (Default or Individual boundaries)

      7. Final Price Output

      You're in control of each layer, and the more RoomPriceGenie understands your preferences, the smarter the pricing will become over time.

      6. How to Understand the Price Calculation in RoomPriceGenie

      RoomPriceGenie is designed to be transparent — no black-box pricing here. You can always see exactly why a price is what it is, including overrides.

      1. Price Pop-Up (Calendar or Chart View)

      • Click on any date's price in the calendar.

      • A pop-up will appear showing:

        • Recommended price

        • Base Price

        • Market Factor
        • Occupancy/Pickup Factor

        • Your Adjustments (summary of all pricing strategy or manual adjustments)

      2. Edit Prices Tab

      • Click on any date's price in the calendar.

      • Click the arrow next to "Your Adjustments" in the pop-up window or navigate to the "Edit Prices" section.

      • Here you see a list of all possible settings:

        • Summary of the price after calculating the Base Price, Market Factor, and Occupancy Factor

        • Strategy Settings (Day-of-the-Week, Monthly, Lead Time, Yielding Tag Adjustments)

        • Manual Price Adjustments (Fix Prices, Percent Adjustments)

        • Min/Max Caps (Default or Individual boundaries)

        • Final Recommended Price


      Quick Tip:
      If your prices look unexpectedly low or high, check the pop-up and edit tab first. They give you the whole story — no surprises.

      7. Troubleshooting Common Confusions

      Q1: "Why aren't my prices increasing even though demand is high?"

      • Check your Max Price — it may be capping increases.

      • Your strategy may be set to Low Aggressiveness, or sensitivity to demand is low.

      • If you've manually set a price, it overrides automatic updates.

      Q2: "Why do prices look flat across the week?"

      • If occupancy is low, dynamic changes may be minimal.

      • You might be using a slow occupancy strategy.

      • Ensure your Day-of-Week adjustments are configured.

      Q3: "Prices changed slower than I expected during an event."

      • Check if your occupancy strategy is too slow or cautious.
      • Did the market detect the event? Look at the market factor: pricing may be conservative if the market is not increasing prices.

      Q4: "I see high prices that don't match my expectations."

      • Double-check for any manual price adjustments or seasonal rules.

      • Review your Occupancy strategy — the settings could be too aggressive.

      • Make sure your Min/Max boundaries are sensible.

      Q5: "Why is my price below the minimum I set?"

      • You likely have a manual or date-specific minimum price adjustment that overrides the default.
      • The default min price (set under your Rooms/Apartment Setup) sets a baseline. However, if you manually added a minimum price on a specific date or period, that overrides the default.

      Need Help?

      If you're unsure how to combine these settings for your situation, contact our support team — we're happy to help you optimise your strategy.