Automated Dynamic Pricing: The ZEN RMS Feature That Helps You Increase Revenue With Minimum Effort

If you think dynamic pricing is not for you, you’re missing out! Learn more about it in this article.

Price is a significant factor in every guest’s hotel booking decision. As a hotelier, you have to stay on top of market trends, current demand, seasonality, and changing customer behaviors to make sure you’re keeping your prices competitive and attractive. 

With so many fluctuating factors to consider it can be easy to feel overwhelmed trying to create the most profitable hotel pricing model. 

But what if we said there’s a software you can use that can create AND adjust your hotel room prices without you having to manage it daily?

Introducing ZEN RMS, our AI-operated Revenue Management System designed to maximize your hotel’s revenue through its Dynamic Pricing feature.  

What’s inside this blog?

  • What is ZEN RMS and Dynamic Pricing
  • How does Dynamic Pricing work?
  • How Do You Use ZEN’s Hotel Revenue Management Software?
    • Setting Prices With Triggers Using Event Manager
    • Be Strategic In Maximizing Hotel Revenue With Auto Pricing
  • How Does Smart Pricing Work?

What is ZEN RMS and Dynamic Pricing?

ZEN RMS is an all-in-one solution to boost your hotel’s sales and operations, bringing together the best of hotel software and ZEN pricing experts.

Also known as time-based pricing, the dynamic pricing strategy refers to a frequent adjustment of hotel room prices based on demand and supply. It projects the best available rates at the right time for the right season and for the right guest. Dynamic pricing eliminates guesswork and saves you time from doing manual calculations. 

Your room rates also adjust to what your guests are willing to pay depending on the season, your guests’ booking pattern and preferences, and the domestic and international demands. So even when demand is lower, you will still be able to secure bookings.

For an extensive explanation about what dynamic pricing solutions can do for your hotel, read this: Dynamic Pricing for Hotels: The Fastest & Smartest Way To Increase Revenue

ZEN RMS does the critical tasks for you

dynamic pricing feature of zen emanager
  • Our pricing algorithm automatically prices all your rooms for the next 364 days in real time. 

  • Our algorithm was invented by ZEN after 6 years of providing Hotel Revenue Management assistance to our 1,000+ hotel partners. 

  • The algorithm includes dozens of variables (events, demand, occupancy, pickup, number of rooms, seasonality, room type category etc.) that help with decision-making

  • Uses Artificial Intelligence (AI) to maximize your revenue every day.

ZEN Hospitality Solutions is the only company in Southeast Asia that provides Revenue Management Solutions with a built-in Channel Manager and add-ons. It is also the exclusive partner of eZee in the Philippines and Indonesia and offers online hotel management software both on a la carte basis and as a software suite.

How Does Dynamic Pricing Work?

ZEN’s Hotel Revenue Management Software (RMS) uses its dynamic pricing feature by allowing hotelier’s to set specific parameters and combines this with its own internal algorithm to arrive at the best possible price per room AND makes daily adjustments to reflect the slightest change in each pricing factor (demand, supply, events, seasonality, etc.) to stay competitive and achieve better results. 

How Do You Use ZEN’s Hotel Revenue Management Software?

ZEN RMS’ simple and user-friendly interface allows hoteliers to easily navigate the software without the assistance of a tech specialist. 

Upon start up, you’re greeted with a clean Performance Dashboard that displays your hotel’s Average Daily Revenue (ADR) and Occupancy. This graph allows you to get an overview of your daily revenue and bookings and spot patterns and trends that will help you adjust your strategy. 

For example, you might notice that your occupancy tends to spike during the weekends or holidays. You can increase your rates during these days to increase your ADR and pull up your monthly revenue. 

On the right is an Order Source pie chart that tells you where your bookings are coming from. You can find out if there are OTAs you should be investing more or less in and if there are channels you might not be advertising in but are bringing in more bookings. 

On the bottom is your Net Revenue by Date and Lead Time. This bar graph lets you pinpoint how long guests are staying and which days provide you with the most revenue. It also tells you if there is a demand for longer stays, weekend stays, or shorter weekday stays –information you can use to adjust your promotions and capitalize on booking trends. 

Once you have a general picture of how your hotel is performing, you can then use this information to set parameters that will enable the dynamic pricing feature to create the best possible prices to increase your hotel’s daily bookings and maximize revenue. 

Under Settings, you’ll find two ways to automatically adjust your prices: Event Manager and Auto Pricing

Setting Prices With Triggers Using Event Manager

Events Manager is a trigger-based pricing system that allows you to set price multipliers per room and day to accommodate demand during peak seasons, slow periods, or for current market trends. 

You can add multipliers in bulk or within a range for longer trends, or only apply it to particular days. 

This feature is especially useful during long vacation weeks, holidays seasons, and when you know there is a highly anticipated event happening in the area like a concert, run, or party. If you know people will be looking for accommodations, you can increase the prices during those days and maximize revenue per room. 

Be Strategic In Maximizing Hotel Revenue With Auto Pricing

Auto Pricing, aka Dynamic Pricing, is our best RMS feature. By setting parameters , you can let our software do all the work while you focus on everything else in your business. Simply turn it on and watch the algorithm adjust your room prices to effectively increase bookings instantly. 

However, on days or months wherein you have a specific rate or pricing strategy you want to implement, you can turn it off and manually input prices per room and day. 

Moreover, with auto pricing you can use not just one, but two dynamic pricing models to maximize room prices: Smart Pricing and Rule-based Pricing

How Does Smart Pricing Work?

Smart pricing combines your customized parameters and ZEN’s internal algorithm to find the best price for each room and make real-time adjustments based on supply and demand, and market trends. 

Room Settings

First, input your Room Settings to include your base rate, floor and ceiling prices, max discount and markup. You can also add fees for add-ons, walk-ins, and include multipliers for specific days. You can change the settings at any given time for each of your room types (single, double, deluxe, suite, etc.).  

Floor Prices

If you’re worried about accidentally incurring a loss with the automated system, you can add an extra safety net with Floor Prices. You can set the lowest price for each room manually or in bulk to ensure you still profit from the discounted rates. 

Floor pricing implementation is done through a hierarchy of parameters that the system will follow: 

  • Floor Price By Day

  • Floor Price By Day of the Week

  • Global Floor Price

If there are no parameters for each day, the system will use the floor price for each day of the week. If both are left empty, the global floor price is followed.

Target Occupancy

To further refine the algorithm, you can use Target Occupancy (TO) to reflect your Expected Occupancy for better price setting. 

The line graph will show how close your Actual Occupancy (AO) (blue line) is to your expected rate (red line). You can use the information here to adjust your prices to bridge the gap. 

If AO < TO, decrease your prices. If AO > TO, increase prices. You can control your pricing based on data and have it reflect your current strategy. Furthermore, there’s no need for you to adjust this daily. Once you set good parameters, the model automatically adjusts itself to reach your goals.


The last feature under smart pricing is Aggressiveness. This is actually one of the more unique features of ZEN eManager’s RMS. Aggressiveness allows you to set your risk aversion and how much you want the dynamic pricing to fluctuate with the changing trends and demands of the market.

High aggressiveness means a highly hotel dynamic pricing model with very high and very low prices. Lower aggressiveness translates into more stable prices and more conservative changes. 

Smart Pricing combines all four settings to match each room to a price that reflects your preferences and strategy. You can mix and match and adjust any time to test and experiment with the variables until you find a combination that works for your hotel. 

The No-Fuss Rule-based Pricing

Similar to Events Manager, Rule-based Pricing follows a certain trigger or pre-determined rules to activate a price. This pricing method allows for more control than smart pricing. If all parameters are satisfied, rule-based pricing will override any pricing set by smart pricing settings. 

The Option To Manually Set Prices

Going to the Price Dashboard gives you a full screen view of all your hotel room prices within a given day. You can view the occupancy rate and manually change prices to override all auto pricing parameters. 

If you’re the type of hotelier that wants to do daily check-ins and adjust prices by yourself, bulk pricing via the price dashboard is a great option. 

With so many options available, ZEN Revenue Management Software is the perfect financial partner to handle the day-to-day task of pricing management. All you need to do is input your specifications and preferences and let the software work its magic. 

Watch as your daily occupancy increases and enjoy maximized revenue courtesy of an AI-operated RMS. The best part is you can use this RMS at just $75/month!

We’ll handle the integration and set-up while you work with your team on how best to use the system. 

Learn more about our Revenue Management Software and Book a Demo today. 

Frequently Asked Questions About Dynamic Pricing System

Q: What is the dynamic pricing meaning?
A: The meaning of dynamic pricing is simple: It is a revenue management technique of adjusting room prices dynamically based on consumer demands, competitor pricing, seasonality, current occupancy rate, and other external factors.

Q: How are dynamic pricing models done?
A: Most of the dynamic pricing examples are done automatically using a smart pricing engine, instead of human intervention, as dynamic pricing requires extensive analysis of an immense amount of data points within a very short period of time.

Q: What is an example of dynamic pricing for hotels?
A: One dynamic pricing example is when you book a hotel room that doesn’t seem to be the normal or usual market price. Or when you book a room during the Christmas period, you will notice that the dynamic rates of hotels are higher than the usual rates during the normal period. This is caused by the fact that the hotel is trying to maximize its revenue during high-demand periods. The dynamic pricing solutions react to the current market demand in real-time so it doesn’t it’s pretty normal to see the same hotel room you’re trying to book earlier, has increased or lowered its price 30 minutes after.

Q: How can I implement dynamic pricing for my hotels?
A: There are several dynamic pricing software available in the market. When choosing the right dynamic pricing hotel system, you can count on ZEN eManager Express. With years of experience and hundreds of properties across Southeast Asia, ZEN ensures hotel owners an increased revenue through ZEN eManager Express.

Article by Ayna Gonzales