What were your biggest challenges rolling out dynamic pricing in hospitality?

[Jonathan48]

I work in revenue management for a regional hotel chain, and we're considering implementing a more sophisticated dynamic pricing model that goes beyond our current seasonal adjustments. I'm concerned about the potential for customer backlash if rates fluctuate too dramatically and the technical complexity of integrating real-time data on competitors, local events, and booking pace. For others in hospitality or e-commerce who have rolled out dynamic pricing, what were the biggest operational challenges you faced? How did you determine the right rules and algorithms to balance profit maximization with customer satisfaction, and what metrics do you monitor most closely to ensure the system is working as intended?