What is dynamic pricing?

Dynamic pricing, also known by the names time-based pricing or demand pricing, is a method for setting prices based on current market demand. If you own or manage short-term rentals, it is very important not to use fixed rates. Why? Because if you want to maximise your profits and fill your property(ies) all year round, it is a huge mistake to set a rate higher than the market demand or lower than it; the former leaves you with no occupancy and the latter decreases your bottom line. As this might seem like a professional task that needs knowledge and accurate data, you'll need tools, which are called dynamic pricing tools, which calculate the right price based on different factors in the market.