What it means in plain language
Dynamic pricing replaces static rate calendars with rules that respond to live demand signals. The goal isn't always higher rates - sometimes it's the discipline to hold a rate when the system says it should drop. Done well, it captures 5-15% more RevPAR; done blindly, it trains every customer to wait for the dip.
How Dynamic Pricing fits in the bigger picture
Dynamic Pricing doesn't live alone - it sits inside the Pricing & Rate Strategy category and connects to 3 closely related concepts most working revenue managers track in the same breath. Pair this definition with the related terms below to build a working mental model - definitions in isolation are easy to memorize and easy to misuse.
Related terms you should also know
Each of these is one click away - start with whichever you don't already use daily: