What is the definition of Dynamic Rate in the hotel industry?
A rate offered on online travel agencies sites, that permits hotels to increase trade by selling a definite quantity of hotel nights for the price of less hotel night(s). An instance of this is the spark sale of a hotel booking for 4 nights for the cost of a 3 nights stay.
This marketing and revenue approach usually done during low-season times or when hotel room share are not being met. Dynamic rate is also done to draw customers from opposition and break rate integrity. These rate are usually prearranged on online travel agency sites, with larger hotel chains and in organization with the online travel agency itself.