dynamic pricing

October 27, 2020

Dynamic Pricing for Upgrades: Why is it important for your hotel?

Jos Schaap | ROOMDEX

Dynamic pricing for rooms is a well-established practice. General revenue management systems have used it for decades to maximize revenue and profitability.

Dynamic pricing gives revenue managers the ability to adjust to real demand fluctuations. They gain greater revenue out of their existing property based on effective yield and revenue management. It is a huge advantage to hoteliers at any time but now even more so due to COVID and when potentially facing into an economic downturn. Hotels have lost several months of revenue and the rebound is slower than initially expected. Dynamic pricing supports recovery. Hoteliers can to make the most of every booking.

Now, imagine taking rate optimization one step further by applying dynamic rate technology to upsell higher room categories. At ROOMDEX we did just that.

A New Approach – Yielded Upgraded Pricing

Upselling is a common way for hotels to generate more revenue. Whether you are a small, family-run hotel or a multi-property brand, it is just as efficient an option for every property type. But for most hotels, upselling has a low success rate. Why? Mostly because it’s a tedious process that requires a lot of manual work in order for it to be efficient. More often than not, broad assumptions are made about guests prior to offering an upsell. As such, there is a high probability that upsells go out at the wrong price, to the wrong person, at the wrong time, all resulting in a low conversion.

ROOMDEX’s Upgrade Optimizer upselling app solves the problem. Like in the revenue management you use for reservation acquisition, we also use dynamic pricing to ensure your offers are optimized for maximum profitability. You will automatically upsell revenue without the need to spend time on the manual intricacies. Here’s how.


There’s a lot of data out there – historical, transactional and guest preference data – to help revenue managers identify upgrade opportunities and establish the optimal price. Done manually, it is a cumbersome and fruitless task. With ROOMDEX’s Upgrade Optimizer, there’s no more daily price setting or manual data entry. Instead, hotels automatically act on data with little-to-no intervention, helping drive more profit to the bottom line.

It Generates Better Price Matches

Many hotels set static rates for room upgrades which are not responsive to demand, occupancy and forecast conditions. ROOMDEX’s Upgrade Optimizer leverages stay history, reservation and available room data to intelligently calculate the best price. Automatically create upgrade offers are primed for conversion. Real-time dynamic pricing puts highly targeted offers in front of your guests. For the right price, guests won’t mind spending a bit more for an improved stay experience.

pricing on laptop


Personalization is a major driver for travel booking conversion. According to consumer research, 72% of consumers will only engage with marketing messages that are customized to their specific interests, with 61% of consumers likely to spending more dollars if an additional service compliments or enhances their main purchase. Knowing what your guests like and targeting their specific needs and preferences during booking can almost guarantee an upsell.

ROOMDEX uses reservation and guest data with and proprietary persona and price algorithms to deliver personalized digital offers. Gone are the days of irrelevant offers. We are now in the age of Hyper-Intelligent offers.

offers on laptop


Upgrade sales are not a new concept, but they are rarely seen as a serious part of hotel revenue. However, the current times of economic flux require hoteliers to be very asset-specific and sales-oriented attitude. ROOMDEX’s Upgrade Optimizer will help hotels meet changing market conditions and react accordingly to maximize revenue opportunities. Using real-time dynamic pricing intelligence, ROOMDEX can readily equip hoteliers to properly capitalize on upsell revenue.


Jos Schaap

CEO & Co-Founder

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