The principle of dynamic pricing—the changing price of a commodity based on current market value—isn’t new in business travel. But it is gaining new prominence in accommodation pricing as hotels increasingly use their version of dynamic pricing, i.e., best-available rate, as the basis for calculating price.
In the hotel industry’s dynamic pricing model, a hotel and a corporate buyer negotiate a discounted rate, which the corporate buyer then can apply to best-available rate.
The model is still evolving, but it’s already having an impact on corporate travel programs. A new white paper from Advito evaluates the trend and offers guidance for how companies can succeed in an environment of dynamic hotel pricing.
