How Dynamic Rate Marketing Improves Hotel Sales

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Today’s customers are smarter shoppers and look for quick ways to get the best deals online. As a customer, you must have come across advertisements stating attractive discounts such as ‘60% off’ or ‘prices starting from $15’. But when one discovers that the discount or the price applies only a few items, one really feels disappointed.

Such marketing approach was used in the hotel industry in the beginning of 20th Century! Hoteliers used this strategy in their print ads.

They ran campaigns stating ‘rooms rates start from $129’ or ‘Our weekend prices are $199-$399’. These advertising techniques worked in that century but are not reliable in the current time.

Nowadays customers are keen to know the current price for a room they find interesting. If they don’t find the price then start looking for other options as they are readily available due to smart devices and the internet.

Therefore, travelers have less patience and don’t like to fall for bait prices. They require credible information and convenience at their disposal. The solution for it is dynamic rate marketing (DRM).


It is an innovative digital marketing technology, which enables real-time hotel room availability and prices to be displayed in marketing campaigns such as email marketing, banner ads and so on.


Using DRM as a powerful procedure hotels can empower their brand value by showcasing up to date information. This certainly makes an impact during the booking decision process.

Through it hotel can be present virtually over several platforms with real-time data. This allows a hotel to directly channel the bookings to the hotel website and reduce the number of bookings made through the OTAs.


Dynamic rate banner is one of the advertising format of DRM. This advertising format is known for significantly higher conversion rates and ROIs compared to the conventional banner advertisements.

Dynamic rate retargeting, dynamic rate Google Adwords, dynamic rate email marketing and dynamic rate promos on the hotel website are other well-known formats. Hotels can select the most suitable formats and use them for their advertising model.

In recent years websites like, etc. have proven to be a valuable source of revenue generation channel. These Metasearch engines are also DRM format that lets hotels post the real-time pricing and inventory offering guests the chance to make direct reservations.


With the help of dynamic rate marketing hotels can meet the demands of travelers by instantly showing hotel information. It also allows hotels to respond to changing market conditions or competitor behavior.

Therefore, the main benefit of DRM is that any changes hotels make in its rates are immediately shown across all advertisement campaigns. DRM greatly increases the effectiveness of ad campaigns and improves conversion.


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