Dynamic Pricing
Tip
Dynamic pricing automates the adjustment of service prices based on real-time demand. For instance, if your business sees a surge in appointments during specific days or times, the system automatically applies premium pricing. This means you can charge higher prices during peak times, maximizing revenue, and offer reduced prices when demand slows down, attracting more guests and optimizing resource utilization.
Example
Sundays are your busiest days, with center utilization rates often exceeding 70%. The base price for a massage is $100. You increase prices by $10 for every 10% increase in center utilization above 70%. You set a maximum price cap at $150 to ensure prices remain within a reasonable range for your guests.
On a typical Sunday, your spa experiences the following center utilization rates and price adjustments:
10:00 AM - center utilization: 65%: Price remains at $100 (below the 70% threshold).
11:00 AM - center utilization: 75%: Utilization exceeds 70%, so the price increases and the updated price would be between $100 - $105.
1:00 PM - center utilization: 95%: Utilization is now 25% above 70%, so the price increases and the updated price would be between $100 - $125.
2:00 PM - center utilization: 80%: Utilization drops but is still 10% above 70%, so the price increases and the updated price would be between $100 - $110.
When a guest attempts to book a service during a high-demand period, an alert message will notify them of a price increase. They will be prompted to review the updated price before confirming their booking.
Why use this feature?
By charging higher prices during peak hours, you can ensure that your business capitalizes on the increased demand.
How to set up this feature?
To set up the Dynamic Pricing feature, reach out to a person from Zenoti.
Impacts and considerations
This can be configured only when demand pricing is disabled.
This is applicable only to online bookings.
This is not applicable to group bookings or guests with memberships.