How Does Tech Support Dynamic Pricing?

Uncategorized
The image is of a wall in a Stongate Be At One venue. On the wall there is a fully fucntioning Digital Media Screen displaying and advert for booking a package deal using the venues app. The rest of the image is made up of a mirror with gold lattice work across the front and a bright neon pink sign across the top which reads 'you spin me right round'.

Setting the Scene: Why Dynamic Pricing Matters

As a company that’s installed cutting-edge systems across hospitality and retail for nearly two decades, I can assure you that static pricing is yesterday’s news. Today, smart pricing strategies powered by real-time technology enable brands to respond to demand, maximise profits and stay ahead. Think digital menu boards, AI algorithms and revenue management systems working together under one project roof.

Tech in Action: Real-Life Wins

Fast Food Franchises: Dynamic Digital Menu Boards and AI 

Wendy’s is leading the charge, investing heavily in digital menu boards designed to support dynamic pricing. Prices can shift based on demand, time of day or even weather conditions. AI-driven upselling also suggests add-ons, improving order size and operational efficiency (restauranttechnologynews.com ). 

The data backs it up. Digital menu boards have been shown to increase sales of promoted items by up to 38% (aiscreen.io). Outdoor digital boards, such as drive-thru signage, can raise average order values by up to 30% while cutting wait times by around 15%. Technology not only entices customers but also improves service flow. 

Hotels and Hospitality: AI-Driven Revenue Systems 

Marriott introduced AI-powered pricing tools such as its Group Pricing Optimiser to analyse booking patterns, competitor behaviour and demand data. This led to smarter pricing and higher contract success rates (epic-rev.com). 

Independent hotels are also seeing strong results. One Sydney hotel adopted an AI pricing manager and achieved a 50 percentage point increase in occupancy, even doubling revenue in one case (mylighthouse.com). More broadly, hotels that use dynamic pricing report revenue increases of up to 20% (onressoftware.com). 

Marriott also reports a 17% uplift in revenue per available room (RevPAR) by applying AI-driven insights (geekyants.com).

What Tech Actually Does at a Glance

  • Real-Time Agility: Digital platforms let you update pricing and messaging instantly, from breakfast specials to evening deals, without printing costs or logistical delays (intuiface.com, onressoftware.com). 
  • Data-Driven Precision: AI and revenue systems assess bookings, weather, competitor moves and customer patterns to forecast demand and set optimal prices (epic-rev.com). 
  • Upselling and Cross-Selling: Smart boards can suggest upgrades such as combo meals or extras at the point of order, increasing average order value (intuiface.com, tryperdiem.com). 
  • Enhanced Efficiency: Automated price adjustments free up your team to focus on customer service and strategy rather than manual updates. 

Keeping it Balanced: Challenges to Watch

Even the best technology has its watchouts. Here are a few that senior IT leaders will appreciate: 

  • Customer Perception: Price changes, especially sudden increases during busy periods, can be perceived as unfair. Transparency helps to avoid backlash (cdotimes.com, hospitalityinsights.ehl.edu). 
  • Brand Integrity: Excessive fluctuation may erode trust if prices dip too low or spike too high (hospitalityinsights.ehl.edu). 
  • Integration Demands: Dynamic pricing only works with seamless integration between EPoS, menu systems and data pipelines. A weak setup means weak performance (ideas.com). 
  • Loyalty Concerns: Overly volatile pricing can damage long-term relationships with customers or booking partners if rates change too unpredictably (hospitalityinsights.ehl.edu). 

Your Tech Toolkit: How We Deliver

Taking a forward-thinking yet practical stance, our expertise brings everything under one roof, from hardware installation and EPoS to digital menu boards and AI-enabled pricing systems. It is a full-service, end-to-end project management approach that saves you from juggling multiple suppliers. Smooth, consistent and with that Celestra authenticity.

 

Quick Checklist: Should You Go Dynamic?

Step  What to Do 
1  Identify goals such as revenue growth, occupancy optimisation or operational speed 
2  Pilot digital menu boards or AI pricing in one outlet or location 
3  Monitor results, including sales uplift, throughput and guest feedback 
4  Expand rollout across systems, including EPoS, menus and mobile apps 
5  Communicate clearly with customers, framing price changes as flexible and value-focused 

Final Word: Let Tech Be Your Profit Sidekick 

In a world where demand shifts faster than ever, tech-enabled dynamic pricing is your ally, not your obstacle. It sharpens your ability to adapt, lifts your revenue potential and keeps your brand nimble. With more than 18 years of experience delivering flawless installs, we make the technology work smoothly and profitably behind the scenes while you take the credit. Find out more here