THE BIZ
PRICING
FOR PROFIT
AFRICA’ S HOSPITALITY SECTOR IS EVOLVING FAST – AND DYNAMIC PRICING IS KEY TO SUSTAINABLE PROFITABILITY, LONG-TERM ASSET VALUE AND ATTRACTING HIGH-VALUE TRAVELLERS IN AN INCREASINGLY COMPETITIVE LANDSCAPE.
By Michela Trolese, Director of Revenue and Distribution at Valor Hospitality Partners Africa
The African hospitality landscape is dynamic, and increasingly so, with vibrant emerging markets and growing competition. But it’ s at a crucial point in its evolution where the industry needs to move away from static fixed rates or reactive, aggressive discounting to dynamic pricing. It’ s a move that benefits the individual property, but also the industry at large. An integrated approach to pricing and marketing makes for a more effective commercial strategy.
Dynamic pricing is, in its simplest form, a strategic, data-driven methodology that is reshaping how revenue is generated.
The shift is about more than access to better data and an upgrade in technology. It’ s a fundamental shift in the approach to value; about prioritising long-term asset value over short-term gains.
Similarly, it is about better inventory utilisation. By adopting smarter pricing and inventory strategies, businesses can significantly increase their reservations. This is achieved by using controls to capture bookings on“ shoulder nights”( periods adjacent to peak demand), optimising the sale of premium room categories and implementing carefully calibrated overbooking models.
Avoid excessive discounting
Strategies like flash sales and massive discounts can devalue a brand. Instead, at Valor, our approach is to consider fair rates and focus on the value of the product.
140 TRADE & TASTE / 2026