LAS VEGAS — Hotels are increasingly using dynamic pricing systems that adjust in real time, which is why guests can see multiple price changes throughout the day.
Dynamic pricing is becoming a popular pricing strategy for hotels and hotel lobby shops. The pricing is adjusted based on live data about demand, time of day, search behavior, occupancy, and competitive data. In an entertainment capital like Las Vegas, conventions and other major events can also influence price changes throughout the day, especially to cater to last-minute demand surges.
Alan Feldman, a resort and gaming expert associated with UNLV’s International Gaming Institute, shares some insight into this strategy:
“It’s like a grease pole. It’s just constantly moving around,” and adds, “The exact same room that is $500 one night is $200 the next.”
Dynamic pricing isn’t limited to hotel rooms but also in-hotel retail services. Visitors at hotels like MGM Grand and Caesars Palace have experienced these pricing changes. One hotel visitor shared his frustration about price changes to the Las Vegas Review-Journal. He shared that his wife paid $10 for a chocolate bar and a drink inside a Caesars Palace store. The following day, he paid $14 for the same two items.
For venues, dynamic pricing is a way to optimize revenue, but for visitors, it continues to be a source of frustration.
