When Britpop legends Oasis announced they were reforming in August 2024, the initial headlines focussed on the perpetually warring Gallagher brothers finally finding peace. The fans’ joy quickly turned to outrage, though, when they tried to buy tickets for the Manchester band’s upcoming world tour. There was disbelief when massive demand caused premium seat ticket prices to skyrocket to over £500 each. For several weeks, all the media could talk about was ‘dynamic pricing’ and how fans were being ripped off. However, the screaming headlines didn’t tell the whole story and have proved particularly confusing to many operators in the short-term rental world.
The facts, though, are simple. The extreme price fluctuations painfully experienced by Oasis fans were not the result of dynamic pricing; they were caused by surge pricing. And surge pricing and dynamic pricing are not the same thing. As a holiday let host, understanding the difference is crucial to making informed decisions about your pricing strategy. Unlike surge pricing, which creates unpredictable spikes, dynamic pricing is structured, data-driven, and beneficial for both hosts and guests. Let’s break it down.
What is surge pricing?
Surge pricing occurs when prices increase dramatically in response to a sudden spike in demand. This typically happens in industries with fixed inventory that can’t be adjusted in real time – think airline tickets, ride-sharing services, and concert tickets.
A prime example is the Oasis tickets controversy. Ticketmaster’s algorithm automatically increased prices based on demand, meaning tickets with a face value of about £75 jumped to £350 in a matter of minutes. The backlash from fans wasn’t just about the price hikes – it was the lack of transparency and control, leaving customers feeling manipulated and frustrated.
When applied unfairly, surge pricing can damage trust between businesses and consumers. Fortunately, dynamic pricing in short-term rentals operates differently – and far more fairly.
How dynamic pricing works for holiday lets, including Airbnb rentals
Unlike surge pricing, dynamic pricing for holiday lets is built on long-term trends rather than last-minute spikes. It’s designed to maximise occupancy and revenue by intelligently adjusting prices based on demand, seasonality, and market trends.
Here’s how dynamic pricing for short-term rentals (like Beyond technology or Airbnb Smart Pricing) differs from surge pricing:
1. You stay in control
With surge pricing, businesses like Ticketmaster set the rules, leaving customers with no choice but to accept inflated prices if they are desperate to buy a ticket. In contrast, dynamic pricing tools for short-term rentals allow hosts to set limits, minimum stays, and base rates. You remain in full control of your pricing strategy.
2. It’s fair and data-driven
Rather than relying on unpredictable demand spikes, dynamic pricing analyses real market data – including booking patterns, competitor pricing, and seasonal trends. This means pricing changes are gradual, strategic, and optimised for both guests and hosts. Beyond is integrated with Airbnb, Booking.com, and Vrbo – three of the world’s biggest online travel agencies – meaning our data provides a very accurate picture of exactly what guests are searching for.
3. Advantageous for both hosts and guests
A well-optimised dynamic pricing strategy ensures guests get fair prices while hosts increase occupancy without resorting to deep discounts. It balances affordability for travellers with profitability for hosts.
4. Encourages sustainable bookings
Dynamic pricing helps prevent excessive vacancies by aligning prices with market demand. Instead of slashing prices during low seasons, a well-implemented strategy ensures steady, predictable income.
5. Avoids the boom-and-bust cycle
Surge pricing can lead to erratic income streams, with sharp highs followed by deep lows. Dynamic pricing smooths out revenue fluctuations, making financial forecasting easier for hosts. It also ensures guests pay a fair rate for their stay whenever they make their booking.
Why dynamic pricing benefits UK holiday let hosts
For UK holiday let hosts, dynamic pricing is an invaluable tool for maximising revenue, increasing bookings, and staying competitive. Here are some key benefits:
- Optimised pricing for different seasons: Gone are the days where you simply offer two rates: high season or low season. Take the guesswork out of your pricing strategy by using technology which will adjust rates automatically.
- Better occupancy rates: By pricing competitively, you are more likely to attract the bookings your business needs – whether that is regular weekend stays favoured by couples or longer mid-term stays preferred by digital nomads. Dynamic pricing will also help to attract bookings during low-demand periods without under-pricing your property.
- Higher revenue over time: Without dynamic pricing, it is very likely you are leaving extra revenue on the table as it’s very difficult to judge demand in your area without up-to-the-minute data. A tool like Beyond will help to maximise income across the year rather than relying solely on peak season surges.
- Reduced admin time: Automated price adjustments save hours of manual work. With Beyond, revenue management can take just five minutes per week.
- Greater competitiveness: Real-time data and constant adjustments will keep you ahead of competitors who use static pricing. Additionally, dynamic pricing will help your listings to perform better on platforms like Airbnb and Booking.com as it will tell their algorithms you are constantly monitoring your rentals and adjusting the rates accordingly.
Why choose Beyond for dynamic pricing?
At Beyond, we were the first to bring dynamic pricing to the short-term rental market, and we continue to lead with the most accurate data and pricing strategies. Our recent integration with Booking.com is proof of our market-leading status. It’s important to note that Beyond is the only dynamic pricing tool in the world which is integrated with Booking.com.
Beyond technology is built specifically for short-term rental hosts, ensuring that:
- You stay in control: set your own limits and rules.
- No gimmicks, just smarter pricing: data-backed decisions, not opportunistic price hikes.
- Better revenue and occupancy: pricing that adapts to market conditions while keeping your listing competitive.
Unlike surge pricing, which can damage trust, our approach helps build long-term success for short-term rental hosts by offering a fair, transparent, and effective pricing solution.
How to implement dynamic pricing successfully
To make the most of dynamic pricing, UK holiday let hosts and property managers should consider these best practices to stay ahead of the competition:
1. Set a base rate you are comfortable with
By setting a minimum nightly rate, you can always feel comfortable that every booking will be profitable.
2. Set minimum and maximum stay requirements
Setting a two or three-night minimum can help prevent single-night bookings that leave gaps before or after the weekend. During high-demand periods, such as summer holidays, you can increase the minimum stay requirement to capture longer bookings and ensure higher occupancy. Setting a maximum stay can also be beneficial, especially if you want to ensure availability for peak dates or high-demand periods. Maximum stays may also be required to ensure your rental complies with local regulations.
3. Implement gap night strategies
Gap night strategies target those single days between bookings which are hard to fill. Offering a lower rate for gap nights can be better than leaving the property vacant. You could also consider asking your guests if they would like to stay for an extra night at a reduced rate.
4. Adjust your calendar with guest preferences
Always keep your target guests in mind and be keenly aware of the type of travellers you are attracting. Specifically, keep an eye on the average length of stay and adjust your calendar accordingly to ensure your rental is available to as many potential guests as possible. Being flexible and adjusting minimum stay requirements dynamically can help you stay ahead of the competition.
5. Stay competitive
Keep an eye on comparable properties in your area to ensure your pricing aligns with market conditions. Keep your review scores as high as possible (if necessary, ask your guests for a top rating). A well-priced listing with strong reviews will always attract more bookings.
Don’t let myths hold you back
Dynamic pricing isn’t about exploiting demand spikes – it’s about smart, data-driven adjustments that help you optimise revenue and occupancy. Unlike the Oasis tickets controversy, where fans had no control over costs, short-term rental hosts using Beyond’s pricing tools remain fully in charge of their pricing strategy.
If you’re still on the fence about dynamic pricing, consider this: sticking to static pricing means you risk leaving money on the table during peak demand and missing bookings during low seasons.
Take control of your pricing today
Ready to optimise your holiday let business? Try Beyond today and see how fair, effective, and transparent dynamic pricing can supercharge your business.
By embracing dynamic pricing, you’re not just keeping up with the competition – you’re staying ahead of it. Don’t let outdated pricing strategies hold you back. Start maximising your revenue and occupancy with Beyond’s proven dynamic pricing tools.
Useful links:
Beyond’s UK Market Cheat Sheet
Dynamic Pricing Demystified: A Comprehensive Guide
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