Dynamic pricing use cases for flexible workspaces

Dynamic pricing is no longer just for airlines or ride-sharing apps. It has arrived in the world of flexible workspaces, and for forward-thinking operators, it is changing the game. If you’re a coworking space operator, you know that fixed rates often leave money on the table during high demand or leave desks empty during slow periods.

By adopting dynamic pricing strategies, you can optimize your revenue, better match supply with demand, and ultimately provide more value to your members. It isn’t about “gouging” your customers; it is about offering the right price at the right time.

1. Optimize meeting room revenue with peak-hour pricing

Meeting rooms are often the most underutilized assets in a coworking space. You might have a 10-person boardroom that sits empty all Monday morning but is overbooked on Tuesday afternoon.

The Strategy: Peak-hour pricing

Just like “happy hour” drives traffic to bars during slow times, dynamic pricing can smooth out demand for your meeting rooms.

• Peak hours: During high-demand slots (typically mid-week and mid-day), prices slightly increase. This captures the premium value of that time slot.
• Off-peak hours: During slower times (Monday mornings or Friday afternoons), prices drop. This incentivizes budget-conscious members to book slots they might otherwise avoid.

This way, you maximize revenue during the busy times and increase occupancy during the quiet ones. It is a win-win that keeps your rooms buzzing throughout the week.

2. Adjust membership tiers based on demand

Fixed membership rates are simple, but they are rarely efficient. A “hot desk” membership in January might have a different value proposition than one in August, depending on your local market trends and seasonality.

The Strategy: Use demand-based adjustments for new sign-ups

• High occupancy: If your space is at 90% capacity, the value of a remaining desk is higher. Dynamic pricing allows you to incrementally increase the rate for new members joining during this period.
• Low occupancy: If you have just opened a new floor or it is a slow season, offering a dynamically lower rate for the first three months can fill seats quickly without permanently devaluing your brand.

This approach ensures you are always aligning your pricing with the actual scarcity of your inventory.

3. Maximize returns on event space

Coworking spaces aren’t just for working; they are becoming prime locations for events. However, pricing an event space can be tricky. A flat hourly rate doesn’t account for the nuances of event planning.

The Strategy: Event-based dynamic pricing

• Lead time: Last-minute bookings often command a premium. Conversely, bookings made months in advance can benefit from “early bird” dynamic rates that secure revenue early.
• Seasonality: The holiday season in December is prime time for corporate parties. Your pricing should reflect that high demand automatically, while offering more competitive rates for a mid-summer networking mixer.

By treating your event space as a dynamic asset, you capture the full value of high-demand dates while ensuring the space doesn’t sit empty during off-seasons.

Not all dynamic pricing is created equal

Keep in mind that implementing these strategies manually is not actual dynamic pricing. Constantly monitoring occupancy, checking calendars, and updating price lists is a full-time job on its own. That’s why real dynamic pricing, like Flexspace AI’s SmartPricing Agent, harnesses the power of AI to use data and insights to optimize pricing automatically. 

Instead of relying on gut feelings or manual spreadsheets, the SmartPricing Agent analyzes real-time data, from your current occupancy levels to booking patterns, to adjust prices automatically. It ensures your rates are always competitive yet profitable, 24/7.

• Real-time adjustments: It reacts instantly to changes in demand, ensuring you never miss a revenue opportunity.
• Data-driven decisions: It removes emotional bias from pricing, relying on hard data to set the optimal rate.
• Seamless integration: It works in the background, updating your booking platform so your team can focus on what matters most: your community.

Ready to stop leaving money on the table? Explore how tools like Flexspace AI’s SmartPricing Agent can help you optimize your workspace and empower your business growth.

Learn more about the Flexspace Ai ecommerce revenue platform

Talk with us