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What Is Demand Level?

Learn what Demand Level is and how it works — a 1–5 scale that lets you guide Pricepoint's pricing to be more aggressive or conservative on specific dates when you anticipate demand changes not yet visible in the data.

Demand Level

Pricepoint's main goal is to find the optimal sell price — within the minimum and maximum prices set in Rate Setup (and Events and Holidays) — to maximize your property's revenue. As a data-driven platform, Pricepoint continuously learns from past and incoming data to make precise, well-calibrated decisions without needing micromanagement.

That said, managers sometimes foresee changes that aren't yet visible in the data — like an unexpected local event. For these exceptional cases, Pricepoint offers the Demand Level feature.

What Is Demand Level?

Demand Level is a scale from 1 to 5 that tells Pricepoint to price more or less aggressively for a specific date. It's a way to guide Pricepoint's recommendations when you know something the data doesn't show yet.

How It Works

  • Level 3 — Balanced pricing strategy (default).

  • Levels 4–5 — More aggressive, ADR-oriented.

    • Pushes prices higher.

    • Example: A nearby airport announces flight cancellations, and you expect a surge in demand.

  • Levels 1–2 — More conservative, occupancy-oriented.

    • Pushes prices lower.

    • Example: Low expected demand due to off-season travel or a local promotion.

Using Demand Level When a Price Feels Too High or Too Low

If a specific date's recommendation feels off, and you have reason to believe demand will differ from what the data currently shows, lowering or raising the Demand Level for that date is often the simplest fix — it nudges Pricepoint's recommendation in the right direction without giving up dynamic pricing entirely.

Key Points to Understand

  1. It's optional. Demand Level doesn't override Pricepoint's AI — it's simply one more input the platform factors in alongside everything else.

  2. When to use it. Reserve it for specific exceptions where you have insight the data doesn't yet reflect, such as:

    • A large event or cancellation affecting local demand.

    • An unusual situation disrupting normal booking patterns.

  1. Avoid overusing it. Relying on Demand Level for frequent or long-term adjustments isn't recommended — it reduces Pricepoint's efficiency and often signals that your minimum/maximum price framework needs revisiting instead.

Best Practices

  • Use Demand Level sparingly, only for short-term, exceptional situations.

  • If you find yourself adjusting it often, contact Customer Support to review your pricing framework.

  • Trust Pricepoint's AI for day-to-day decisions — it's built to adapt on its own and doesn't need daily input.

Used strategically, alongside a well-defined pricing framework, Demand Level helps you fine-tune Pricepoint's performance for sustainable revenue growth.

Ready to make a change? See How to Change the Demand Level for step-by-step instructions.

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