Introduction
If you're charging the same rate for a Friday night in July as you are for a Tuesday in October, you're leaving money on the table. Dynamic pricing—the practice of adjusting rates based on demand, seasonality, and other factors—has been standard in the hotel industry for decades. Now, smart campground owners are adopting these same strategies to maximize revenue while staying competitive.
The best part? Dynamic pricing doesn't mean nickel-and-diming your guests. Done right, it actually creates a better experience by spreading demand more evenly, reducing overcrowding on peak weekends, and rewarding flexible travelers with better deals.
In this guide, we'll walk through everything you need to know to implement dynamic pricing at your campground—from basic seasonal rates to sophisticated demand-based automation.
What Is Dynamic Pricing?
Dynamic pricing means adjusting your nightly rates based on factors like:
- Time of year (high season vs. low season)
- Day of week (weekends vs. weekdays)
- Demand levels (busy holiday weekends vs. regular weeks)
- Booking window (last-minute vs. advance bookings)
- Occupancy rates (as you fill up, prices increase)
- Special events (local festivals, concerts, sporting events)
Why Static Pricing Hurts Your Business
If you charge one flat rate year-round, you're either:
- Priced too low during peak times - Missing out on revenue when demand is high
- Priced too high during slow times - Leaving sites empty when you could fill them
Consider this scenario: Your campground has 50 sites at $45/night.
- Peak July weekend: You sell out instantly. You could have charged $65 and still filled every site. Lost revenue: $1,000/night
- Slow October Tuesday: Only 10 sites booked. At $35/night, you might have filled 25 sites. Lost revenue: $525/night
The Four Levels of Dynamic Pricing
Level 1: Seasonal Pricing (Essential)
The most basic form of dynamic pricing is seasonal rates. Most campgrounds should have at least three tiers:
| Season | Timeframe | Rate Adjustment | | --------------- | ------------------------ | ------------------ | | Peak Season | Memorial Day - Labor Day | Base rate + 20-40% | | Shoulder Season | Spring & Fall | Base rate | | Off Season | Winter months | Base rate - 20-30% |
Implementation tips:
- Define your seasons based on your actual booking data, not the calendar
- Consider micro-seasons (leaf peeping in fall, spring break, etc.)
- Communicate season dates clearly on your website
Level 2: Day-of-Week Pricing (Highly Recommended)
Weekend demand is almost always higher than weekdays. Smart pricing reflects this:
| Day | Typical Adjustment | | --------------- | ------------------ | | Friday | +15-25% | | Saturday | +20-30% | | Sunday-Thursday | Base rate or lower |
Pro tip: Some campgrounds offer "weeknight specials" to attract retirees, remote workers, and flexible travelers who can avoid weekend crowds.
Level 3: Event-Based Pricing (Recommended)
Major events near your campground warrant premium pricing:
- Local festivals and fairs
- Major sporting events
- Music festivals and concerts
- Holiday weekends (Memorial Day, July 4th, Labor Day)
- Eclipse viewings or other natural events
- Large rallies in your area
Research your local event calendar and adjust pricing 3-6 months in advance. Guests understand that high-demand periods cost more.
Level 4: Demand-Based Automation (Advanced)
The most sophisticated approach adjusts prices automatically based on real-time occupancy:
Example rule:
- 0-50% booked: Base rate
- 51-75% booked: +10%
- 76-90% booked: +20%
- 91%+ booked: +30%
Booking window adjustments:
- 90+ days in advance: Base rate
- 30-89 days in advance: +5%
- 7-29 days in advance: +10%
- Last-minute (0-6 days): Either premium or discount, depending on your strategy
How to Set Your Pricing Tiers
Step 1: Analyze Your Historical Data
Before setting new rates, review your booking history:
- Which dates consistently sell out? These are underpriced.
- Which dates regularly have vacancies? These may be overpriced.
- What's your average occupancy by month, day of week, and site type?
Step 2: Research Your Competition
Mystery shop your competitors:
- What do nearby campgrounds charge?
- How do their peak/off-peak rates compare?
- What amenities justify their pricing?
You don't have to match competitors exactly, but you should understand the market.
Step 3: Calculate Your Cost Floor
Your lowest rate should never go below your break-even point:
Daily costs per site:
- Utilities: $5
- Maintenance allocation: $3
- Staff time: $4
- Insurance/overhead: $3
- Total: $15/site/night minimum
Your off-season discount should stay above this floor.
Step 4: Test and Iterate
Start conservatively and adjust based on results:
- If you're selling out too quickly, rates are too low
- If you're sitting at 50% occupancy, rates may be too high
- Track booking pace: filling up 3 months out? Raise prices.
Communicating Dynamic Pricing to Guests
Transparency is key to guest acceptance. Here's how to handle common questions:
On Your Website
PRICING NOTE: Our rates vary by season, day of week, and
demand to offer the best value year-round. Book early for
the best rates on popular dates!
When Guests Ask "Why Did the Price Change?"
Good response:
"Our rates adjust based on the season and how busy we are. Popular weekends like July 4th fill up quickly, so they're priced higher. If you're flexible, our weeknight rates are our best value!"
Rate Lock Policy
Guests appreciate knowing their price won't change after booking:
"Once you book, your rate is locked in. We never adjust prices on confirmed reservations."
Common Dynamic Pricing Mistakes
1. Changing Prices Too Drastically
Wrong: $45/night in October, $120/night in July Right: Gradual tiers with 20-30% increments max
Dramatic swings feel arbitrary and alienate guests.
2. Not Adjusting for Site Type
Premium sites deserve premium pricing:
- Waterfront sites: +$15-25/night
- Full hookup vs. electric only: +$10/night
- Pull-through vs. back-in: +$5/night
3. Forgetting Long-Stay Discounts
Monthly or weekly guests expect volume discounts:
- Weekly rate: 6 nights for the price of 7
- Monthly rate: Up to 30-50% off nightly rates
4. Manual-Only Updates
If adjusting prices requires manually updating multiple calendars and websites, you'll fall behind. Automate where possible.
Setting Up Dynamic Pricing: Step by Step
Week 1: Audit Current Performance
- [ ] Export 12 months of booking data
- [ ] Identify occupancy by month and day of week
- [ ] Note which dates sold out and which had vacancies
Week 2: Define Your Pricing Rules
- [ ] Set seasonal date ranges
- [ ] Determine day-of-week adjustments
- [ ] Identify local events requiring premium pricing
- [ ] Set minimum and maximum rate caps
Week 3: Configure Your System
- [ ] Enter pricing rules into your reservation software
- [ ] Set up automated adjustments if available
- [ ] Update website with pricing communication
Week 4: Launch and Monitor
- [ ] Go live with new pricing
- [ ] Track booking pace versus last year
- [ ] Gather staff feedback on guest questions
- [ ] Plan first review for 30 days out
Key Takeaways
- Seasonal pricing is essential—at minimum, have peak, shoulder, and off-season rates
- Weekend premiums reflect real demand and are expected by guests
- Event-based pricing captures value during high-demand periods
- Automation saves time and helps you respond to demand in real-time
- Transparency builds trust—communicate your pricing approach clearly
Conclusion
Dynamic pricing isn't about squeezing every dollar from guests—it's about aligning your rates with market reality. When you charge appropriately for peak demand and offer value during slower periods, everyone wins: you maximize revenue, guests find deals when they're flexible, and your campground runs more profitably year-round.
The key is starting simple and building sophistication over time. Begin with seasonal rates, add day-of-week adjustments, and consider automation as you grow comfortable with the strategy.
[LINK: operations/05-cancellation-policy] Next, learn how to create a cancellation policy that protects your revenue while keeping guests happy.
Keepr includes built-in dynamic pricing tools that automatically adjust your rates based on customizable rules. Set it once and let the system optimize your revenue. Explore pricing features at campreserv.com