Dynamic pricing means changing the rate of a room over time according to expected demand: day of week, season, local events, competitor rates, how fast the date is filling, and how many days are left before arrival. Instead of one fixed seasonal price, the Best Available Rate moves up and down.
Example: a room that sells for $140 on a Tuesday can reasonably go to $210 on a Saturday when a convention is in town, with a two-night minimum stay to protect the weekend.
In practice: for an independent hotel a few simple rules go a long way (a base rate, weekend and event premiums, occupancy thresholds, a last-minute adjustment). Review them every month against ADR, occupancy and pickup, and move rates in steps rather than big jumps that confuse returning guests.
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