Can hotels using dynamic pricing work successfully with travel companies? Yes. Some of the buyers we spoke to are able to work with dynamic rates, either routinely or in particular circumstances. Others require static rates, while several can work with both but have a preference for static pricing.

That distinction matters.

Dynamic pricing has become an increasingly familiar part of hotel revenue management, and we recently wanted to understand how travel company buyers are responding to it.

So we asked them a simple question:

When contracting accommodation, are you happy to work with dynamic pricing, or do you require static rates?

The question arose following a conversation with a hotel sales director whose property had moved entirely to a dynamic pricing model. She wondered whether this meant many of the travel companies she found through TCT would not be suitable potential partners.

Rather than make assumptions, we decided to ask buyers directly.

Their answers show that there isn’t a simple yes or no.

Some buyers can work with dynamic pricing

Several responses made clear that dynamic pricing does have a place within travel company contracting.

One commercial manager told us:

“We can work with dynamic rates, but where we do we don’t brochure/feature the hotel as we can’t be exact with our pricing. So we work on a more ad hoc basis.”

Another buyer explained that their company prefers static rates but is nevertheless able to work with both models.

Sabine Majdalani, Senior Operations Manager at Club Europe Group Travel, told us:

“We prefer working with static prices as we are then able to quote the clients quicker than waiting for the hotels reply. But in general we do of course work with both.”

Another respondent explained that although static FIT rates form the core of their traditional DMC contracting model, where static rates aren’t available they can connect dynamically.

These responses highlight an important distinction for hotel sales teams. A preference for static rates doesn’t necessarily mean a buyer cannot work with dynamic rates.

It may instead affect how, when or for which business they work with a particular property.

Why do many buyers still value static rates?

Among the buyers who expressed a preference for static rates, one of the clearest reasons was price certainty.

Many travel companies contract accommodation well in advance and need to know what a hotel will cost before the traveller actually stays. This is particularly important for companies producing brochures, publishing package prices or contracting escorted tours and groups.

Emma Brown, Product Manager, explained:

“As our holiday prices are set when the brochures go to print, we need to have our accommodation rates agreed in advance so that we can price our holidays accurately and maintain those prices throughout the season.”

For her particular programme, a hotel offering only dynamic pricing would not be suitable.

Erik Jelinek, Product Manager at One Traveller, was similarly clear:

“For escorted tours static rates only, otherwise we have no predictability.”

Other buyers described contracting accommodation 12 to 18 months ahead, sometimes before the following year’s hotel pricing would normally be available. Once those holidays have been priced, marketed or sold, changing the customer price can be difficult or impossible.

It isn’t only about brochures

Static rates can also make the everyday sales process easier.

Some respondents explained that having an agreed rate enables them to quote more quickly.

For companies selling through travel agents, this can be particularly useful when an enquiry begins with a broad requirement rather than a specific hotel and date. One buyer told us that hotels providing static rates tend to be quoted first in those circumstances because their team can discuss realistic pricing with the agent immediately.

For tailor-made travel, there can be another challenge.

Lene Minyard, Owner of Perfectly Planned Journeys, explained:

“I have to stick to the price I quote for my clients. If the price goes up after I submit my quote, I end up with a potential loss.”

And Lourdes Merino, Product Manager at DGI Study Trips, told us that although their preference is for fixed rates, one of the reasons is the particular needs of their clients:

“Our university clients also tend to have fairly tight budgets and often need to get approval before they can book, so having a rate that could change depending on availability makes things a bit tricky.”

The reasons behind a buyer’s preference can therefore be closely connected to the type of travel they sell and the customers they serve.

What does this mean if your hotel only offers dynamic rates?

It certainly doesn’t mean you should discount the travel trade.

The responses suggest instead that understanding the type of travel company you are approaching becomes particularly important.

A travel company that sells your destination, serves a relevant traveller profile and offers the type of travel that fits your property may be worth approaching even if you don’t yet know how it contracts accommodation.

That is where good research can make the sales conversation more productive.

TCT does not currently tell users whether an individual travel company requires static rates, accepts dynamic pricing or uses a combination of the two.

What TCT does provide is detailed, pre-analysed information to help suppliers identify relevant travel companies in the first place, including the destinations they sell, traveller types they serve, special interests and other information about their business.

Rather than approaching companies simply because their names are familiar, hotel sales teams can use that information to build a more relevant prospect list. They can then approach those companies with a better understanding of their business and use the conversation to establish whether the commercial fit extends to contracting too.

TCT helps you identify who is worth having the conversation with. The conversation then gives you the answers that data alone cannot.

There is a wider lesson for DMCs and tourist boards too

Although our question was specifically about accommodation contracting, the findings are relevant beyond hotels.

DMCs regularly bring together accommodation and other components for travel company partners, so understanding that different buyers have different commercial requirements is important when developing product and proposing hotels.

For tourist boards and DMOs, there is a similar consideration when introducing local suppliers to travel companies. The most valuable introduction isn’t necessarily to the biggest or best-known operator. It is to a company where there appears to be genuine potential for a relevant partnership.

In both cases, having better information about travel companies before making contact can lead to better questions and more productive conversations.

So, static or dynamic?

Our responses don’t provide a representative industry survey, and we wouldn’t use them to suggest that one contracting model dominates the travel trade as a whole.

What they do show is the variety behind a seemingly simple question.

Some buyers require static rates. Some prefer them but can work dynamically. Some can use dynamic rates for particular types of business even when static contracting remains important elsewhere in their programme.

For hotel sales teams, that makes it worth resisting assumptions in either direction.

If you offer dynamic pricing, don’t assume a travel company won’t work with you. Find the travel companies that look relevant to your business, understand as much as you can about them before you make contact, and then ask.

Sometimes the most useful sales intelligence is knowing who to have the right conversation with.