Pricing Fundamentals
Dynamic pricing starts with a reference rate for the property, then adjusts it for each date. This hub explains that calculation before you add custom rules or integrate the API.
The three ideas to learn first
| Idea | What it answers | What it does not mean |
|---|---|---|
| Base price | What is this property's year-round nightly reference rate? | A minimum, an annual revenue forecast, or every night's price |
| Calendar price | What rate does the model recommend for this date? | A guaranteed booking or a published channel rate |
| Explanation | Which signed amounts led to the recommended price? | Independent percentages you can simply sum |
A simple example
The model compounds. Automatic rule percentages share one basis. Price limits apply after rule and custom adjustments.
- Base price$200.00
- Seasonality +20%$240.00
- Demand +10%$264.00
- Automatic rules −45%$145.20
- Custom weekday +10%$159.72
- Minimum $210$210.00
The chart follows a complete synthetic price through model effects, automatic rules and an owner minimum. You do not have to enable any of those optional rules to request a calendar recommendation.
A $200 base price with an illustrative +20% seasonal effect becomes $240. If a +10% demand effect follows, the nightly price is $264—not $260—because these model effects multiply in sequence. Your custom rules and limits come afterward.
Read in this order
Start with the base-price guide, follow the price calculation, then explore model controls or the three-day World Cup example. Each guide explains both what changes and what stays unchanged.
- AirROI Dynamic Pricing Engine Overview
A technical overview of the third-generation AirROI dynamic pricing engine: booking probability and expected revenue, lead-time-conditioned demand, fixed-effects seasonal regression, hierarchical shrinkage across geographies, an evidence-gated demand ensemble, and dollar-level price attribution, with interactive charts and served recommendations from 20 markets.
- How to Choose and Use a Base Price
Learn what AirROI's base price means, which property inputs to send, and how to use the result for nightly prices.
- How AirROI Calculates a Nightly Price
Follow model effects, pricing rules, limits, and overrides in order, and learn to read each explanation line.
- Seasonality and Demand Controls Explained
See how sensitivity settings scale model effects, suppress negative demand adjustments, and affect a worked nightly price.
- World Cup Pricing Example: Three Nights, Explained
Follow a Miami Beach two-bedroom through three consecutive World Cup nights: model effects, stacked discounts, custom adjustments, a minimum price, and a fixed override, each receipt line explained with interactive charts and a what-if explorer.