How the DIAMO Pricing Engine Works

The DIAMO Pricing Engine recalculates an optimal rate for every future night on an hourly basis, so your rates always reflect current market conditions and your property's own performance.


Here's how it works:


1. Start with the market

For each future night, the engine pulls current rates from your competitive set and calculates a market-anchored base rate. Your pricing is always grounded in what comparable properties are charging today.


2. Check how you're pacing

The engine compares your actual on-the-books occupancy to where you should be for that night, based on three things you configure:

  • Your target occupancy for the night
  • A booking curve that defines what percentage of that target you should be at, at each point before arrival
  • How far out the night is


If you're ahead of pace, you have room to push rates up. If you're behind, rates come down to stimulate demand.


3. Adjust the rate

The engine moves the market-anchored base rate up or down in proportion to your pace — gently for small gaps, more decisively for larger ones. A sensitivity setting controls how aggressively rates respond.


4. Apply your guardrails

Before publishing, the engine enforces your rules:

  • Room-type differentials keep the right spread between room categories
  • Price floors prevent rates from going too low
  • Price ceilings prevent rates from going too high


5. Publish clean rates

Tiny changes below a minimum threshold are suppressed to avoid noise, and final rates are pushed to your PMS every hour.


The bottom line: every hour, the engine answers one question for every future night — "Where is the market today, and how are we pacing against our goal?" — with clear, auditable logic and your guardrails always in place.

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