How does dynamic pricing work for coworking spaces?
May 21, 2024
4 mins read
Our Partners
While you may be familiar with the concept of dynamic pricing as it relates to the entertainment, travel, or hospitality industry, dynamic pricing for coworking is a newer concept.
Similar to other industries, dynamic pricing for coworking allows you to adjust prices based on various factors, like demand, seasonality, and events (just to name a few), all in real-time.
Compared to static pricing models, this allows coworking space operators to fill available inventory and increase revenue without requiring much, if any, manual work from a team member or admin.
Let’s take a look at three examples of how dynamic pricing for coworking actually works when implemented:
1. Demand-based pricing
Perhaps the most obvious use-case for dynamic pricing, demand-based pricing allows coworking space operators to adjust prices based on demand of their offices, meeting rooms, and event spaces. So during peak days, hours, or even seasons when there’s a higher demand for coworking spaces or meeting rooms, prices could be higher.
On the other hand, coworking space operators can lower prices during off-peak days to attract more customers and earn some type of revenue on a day when they typically had made nothing (or very little).
The ability to easily adjust pricing along the same cadence as customer demand allows for an increase in revenue and capacity without requiring manual attention from a team member.
2. Event-based pricing
Similar to hotels and resorts that adjust their rates to accommodate the influx of people during specific events (like concerts, sporting events, and conferences, for example), coworking space operators can also take advantage of events that might bring more professionals to their area that would require an office, meeting room, or event space and adjust prices accordingly. Operators can choose to offer a discount or apply surge pricing based on the demand and their rate strategy.
A great example of this would be a convention or conference where companies are bringing their teams together for in-person meetings and they need something other than a hotel room to conference and work. Or, for companies who are setting up meetings with potential customers or clients and want a professional space outside of the conference location to do business.
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3. Special promotions or discounts
Dynamic pricing for coworking spaces allows operators to create targeted promotions and discounts to attract customers. Whether they want to offer an advance purchase rate to encourage customers to book ahead or they just want to offer a special deal for anyone who is booking on a certain day or time, dynamic pricing makes it easier to implement these types of marketing approaches and eliminates the need for admin to continually make this changes manually.
Flexspace’s ecommerce Revenue Platform which includes Flexspace® Dynamic Pricing has helped customers like Werqwise increase capacity and revenue, with particular attention to days where meeting room bookings were at their lowest.
“We’ve increased the number of our meeting room bookings by like 960%, which led to like an increase in revenue by 850%, quarter over quarter, which was awesome to see. We also saw an uptick in meeting room bookings and lounge bookings on Mondays and Fridays, which were our lower usage days.” Ramsey Salah-Mars, Digital Marketing Manager, Werqwise
Flexspace’s experienced team of experts can help launch your ecommerce platform and leverage Flexspace® Dynamic Pricing to help meet your business goals.
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