Dynamic Pricing Isn’t Just for Hotels—Your Business Can Benefit Too
Years ago, I was struggling to get an appointment with my longtime stylist and friend. No matter how early I reached out, her schedule was booked solid for the times I needed. Frustrated, I started asking her about her peak times. It didn’t take long to realize that her business operated just like a hotel. Her chair and services were limited, just like a hotel room. If she didn’t sell the hours in her chair each day, they were gone forever—just like an unsold room night.
What really struck me was that she was turning away great customers (like me!) in favor of whoever happened to book first, even if they weren’t spending as much. That’s when I introduced her to the concept of dynamic pricing. Instead of charging a flat rate for every appointment, we looked at demand patterns. We raised her regular rates for high-demand times—like Friday afternoons and Saturday mornings—and introduced lower prices for slower periods, such as Tuesday mornings. This simple shift helped her streamline her schedule, increase her revenue, and ensure her time was being valued appropriately.
Once I saw this strategy work for my stylist, I realized it applied to many other industries. My nail salon could use the same approach. My husband’s audio-visual business had peak seasons and downtime that could be managed better. The event industry, in particular, was a perfect fit for dynamic pricing—every vendor should be adjusting rates based on demand patterns.
Why Dynamic Pricing Works Across Industries
At first, many business owners resist dynamic pricing. They worry that customers will push back, or they prefer to keep things simple by listing static prices on their website or social media. But here’s the thing: Dynamic pricing benefits both the seller and the customer.
For businesses, it ensures that high-demand time slots or services are priced accordingly, maximizing revenue.
For customers, it allows those with flexible schedules to take advantage of lower prices, making services more accessible.
For both parties, it turns the transaction into a conversation rather than a simple order. Instead of customers just picking from a set menu, they engage with the business, which creates opportunities to upsell, educate, and customize services.
More Real-World Applications
Hotels & Airlines: Where it all started for me! Rates change based on demand, seasonality, and booking patterns.
Event Vendors: Venues, caterers, and photographers should charge more for high-demand wedding dates and less for off-season events. Pro tip for savings—plan your event on a Friday or Sunday night, or even better, a midweek date to maximize your budget.
Medical & Wellness Appointments: Dentists, massage therapists, and personal trainers can charge premiums for peak hours and offer discounts for slow periods.
Restaurants: Happy hours and early bird specials are just another form of dynamic pricing.
Freelancers & Consultants: Premium pricing for last-minute work or peak seasons can increase revenue and manage workload.
The Takeaway
If your business involves booking time, resources, or space, dynamic pricing can work for you. Instead of leaving money on the table or turning away great clients, adjust your pricing strategy to align with demand. Not only will it boost revenue, but it will also help create a more balanced, efficient workflow.
So, whether you’re a hairstylist, a hotelier, or a photographer, it might be time to think about your business like a revenue manager. Trust me—your bottom line will thank you!
Want to dive deeper into revenue strategies for your business? Let’s talk—visit kellyhaynie.com for consulting and training opportunities.
