How to Boost Meeting Room Revenue in Your Coworking Space with Dynamic Pricing

Dynamic pricing is used across a range of industries to price products or services in line with supply, demand, market conditions or customer behaviour. Pricing things dynamically can help businesses to boost revenue and stay competitive. 

When it comes to boosting profits, particularly for meeting rooms, dynamic pricing is one of the most effective strategies for coworking spaces.

When was dynamic pricing invented?

The concept of dynamic pricing has been around since humans started trading in markets or auctions. Prices have always fluctuated according to supply and demand, and most of us aren’t strangers to the odd bit of haggling. 

Dynamic pricing as facilitated through algorithms – and informed by real-time data – is a 20th century innovation. One of the first instances of dynamic pricing was in the airline industry, when American Airlines introduced “yield management” for tickets. 

In the 1980s American Airlines used software to amend flight prices based on customer booking patterns and demand. Nowadays, it’s used widely; Uber is a notable example. Subscription services too. 21st century AI and machine learning advancements have made dynamic pricing more responsive and sophisticated. 

How does dynamic pricing actually work?

Dynamic pricing is driven by algorithms that process data in real time. This data can include factors like inventory levels, customer behaviour, competitor pricing – even the time of day. Machine learning stores old data and processes new information to come up with a price that it thinks could optimise profit or boost conversion. 

A dynamic pricing system is constantly updating prices based on what it learns from the data it’s fed. In order to work successfully and sync with data, the system must integrate with other platforms such as the business’ CRM, ERP and inventory. 

If a business prefers not to rely on AI-driven dynamic pricing, they can set their own pricing rules based on various variables. One of the benefits of AI-driven dynamic pricing is that it is fast and scalable, enabling businesses to price multiple products and/or services at the same time, with minimal manual input. 

Coworking space dynamic pricing

Thanks to modern coworking dynamic pricing tools, coworking spaces can dabble in dynamic pricing while retaining full visibility and control over how services are priced. There are many ways coworking spaces can price dynamically, including:  

1. Time-based pricing

Coworking spaces can adjust their prices according to the time of day, day of the week, or month of the year. For instance, you might want to charge more during peak business hours and less on evenings and weekends. 

2. Demand-based pricing

If your occupancy hits a low or you’ve opened a new space and are trying to get people to sign up, you can lower your prices to attract people in – and vice versa. Because the dynamic pricing tool integrates with your coworking CRM, it will know your occupancy levels across all your sites at any given time. 

3. Membership personalisation

You can also price dynamically on an individual basis. Again, because the dynamic pricing tool is able to access the data stored in your CRM, it can adjust pricing according to how frequently individuals use your space. 

It can also offer discounted rates to your most loyal members. 

4. Location-based pricing

Not all coworking spaces are built the same. Dynamic pricing can adjust pricing for each of your locations, based, for example, on the prestige of the area and demand. As demand fluctuates, so will the pricing – that’s what makes it “dynamic”. 

5. Event-based adjustments

There are times when demand might suddenly spike, for instance during a local festival or conference. With an influx of potential customers, this could be the perfect time to capitalise and maximise your profits on day-passes and meeting rooms. 

6. Real-time offers

One way to fill empty seats is to offer last-minute discounts or deals. For instance, 50% off meeting rooms for 24-hours only. Getting someone through the door, if only for a couple of hours, could lead to a full member signup later down the line. 

Dynamic pricing strategies for meeting rooms

Dynamic pricing can be used across your portfolio of services, but let’s take a closer look at meeting rooms specifically. Meeting rooms are often underutilised during off-peak days and hours, so are ripe for dynamic pricing. Here’s how to do it:

1. Time-based meeting room pricing

Dynamic pricing can cost your meeting rooms at a higher rate during peak hours, which are typically 10am to 4pm on weekdays. You can approach dynamic pricing in an even more granular way, based on the daily level of demand. For example, meeting rooms might perform well on Monday, with demand waning by Friday.

2. Demand-responsive meeting room pricing

Like the airline industry, you can adjust pricing according to demand. As availability for certain resources drops, your prices can rise automatically. Likewise, your dynamic pricing can lower prices when there’s a lull in demand, to attract bookings.

3. Real-time booking optimisation

You could also provide last-minute, time-sensitive discounts on underused meeting rooms to get people using your space. Members and meeting room customers can see real-time availability and pricing on the coworking app they use to book. 

4. Tiered packages with dynamic elements

Creating discount packages is another incentive that can significantly aid meeting room revenue optimisation. Think of your quietest times – can you offer two hours at 20% off between 4-6pm? Subscription-style credits can also be dynamically priced. 

5. User behavior-based pricing

User-based pricing, also known as personalised pricing or segmented pricing, is commonplace nowadays. You can boost meeting room revenue by customising an individual’s rates based on their past meeting room usage patterns and preferences. 

6. Location and room-type pricing

Again, your dynamic pricing tool can adjust pricing according to the popularity, location, size, amenities – or even the views – of each meeting room. People might be willing to pay more for a state-of-the-art sea-view meeting room, for instance!

Getting started with dynamic pricing

Dynamic pricing enables you to  maximise revenue and respond to demand fluctuations, without having to spend time adjusting pricing and inputting data. 

By adjusting prices in real time, dynamic pricing boosts off-peak bookings, as well as early or last-minute reservations. It can also customise pricing on an individual level, creating a more efficient and flexible meeting room strategy.

If you’re a Nexudus customer, getting started with dynamic pricing is easy. For it to work, you’ll need at least three months of historical data, which the dynamic pricing tool will analyse to set prices. So, if you’re new, you can start in three months. 

When it comes to implementing dynamic pricing, follow the steps in this guide to dynamic pricing. If you’d like to learn more about dynamic pricing for coworking space, or to request a Nexudus demo, get in touch today.