You can set up surge pricing rules based on the number of rooms remaining for the room type. As the number of rooms for the room type starts to sell out, Preno will increase the daily rate by the amount you specify.
Preno will monitor your rates up to 720 days ahead. Each time a booking update arrives (new booking/update/cancellation), Preno will check the active rules to match triggers you have specified. If rates are adjusted, it will also send the update to your online channels immediately.
Recommended surge pricing recipe
We recommend setting up a separate rule for each room type.
Focus on room types that have more than 3 rooms. You can also combine rooms across multiple room types.
Setting the triggers for the rules:
Focus on the last half of the room, as your initial daily rate should cover standard demand. For example:
Rooms in room type | Set conditions for |
5 rooms | 2 and 1 rooms remaining |
10 rooms | 4, 3, 2 and 1 rooms remaining |
Keep the rules simple, set no more than 3 triggers
Depending on your property and pricing strategy, we recommend setting the increase amount between 15% to 40% of your Average Daily Rate.
How to set it up?
Go to Rates, and then click on Go to Dynamic pricing. This will take you to the dynamic pricing area.
Click on Create new rule
Set the number of rooms remaining that would trigger a rate update, and the amount to increase the daily rate by.
Choose the rate plan to apply this rule. You can combine total rooms of the selected room types by ticking the checkbox in Rooms remaining setting.
Name this rule so that you are able to recognise it later.
When you are ready, click Save & review rule. If no changes are required, then click Start rule.
How multiple triggers are applied when triggered
When the number of rooms remaining for the room type changes, Preno will try to match as many rules and add up the rate changes.
Example:
If there are 4 or fewer rooms remaining, then increase the daily rate by $10
If there are 2 or fewer rooms remaining, then increase the daily rate by $20
If there are 1 or fewer rooms remaining, then increase the daily rate by $30
You have 3 rooms remaining, and a booking comes through leaving you with 1 room remaining. This will trigger 2 room trigger (+$20) and 1 room trigger (+$30), so your daily rate will increase by $50.
Frequently asked questions
What happens when multiple triggers are matched in a rule?
Preno will match as many triggers in the rule and add up the amounts to the daily rate.
For example, you have triggers for 3, 2 and 1 rooms remaining. If on 1/Jan/2024, you have 8 rooms remaining, and a group booking is made for 7 rooms. Your rooms remaining goes from 8 rooms to 1 room remaining. This booking triggers the increase set for 3, 2 and 1 rooms remaining and the amounts will be added up.
What happens to dynamic rates when there are fluctuations in demand for the day? ie. multiple cancellations and bookings
Preno will only adjust rates once per rate day when a condition is matched on the rule .
For example, if 1/Jan/2024 had triggered an adjustment for 2 rooms remaining, and then a cancellation happens, and another booking is made, it will not increase the amount for 2 rooms remaining again.
Will shuffling bookings on the grid cause surge pricing rule to run?
When using the drag & drop feature to move bookings around, Preno will only check the rooms remaining 15 minutes after you have completed changes on the grid to avoid unintended rate adjustments.
My rooms types have only 1 room, can I combine multiple room types together for Surge pricing?
Yes, you can now combine rooms from your selected room types to create the Surge pricing rule.