Market first, then your pace, then your guardrails
Every night, DIAMO asks two questions:
- Where is the market today? It pulls live rates from your defined competitors and builds a competitor-anchored starting point.
- How are we pacing against our goal? It compares how full you are for that night against how full you should be by now, and nudges the price up or down to stay on track.
It then checks the result against your price guardrails — the floor and ceiling you set — so the rate never lands somewhere you don't want.
The four levers
1. Market Positioning: Where you've chosen to sit relative to competitors. If you consistently land above or below where you want to be against your peers, talk to your Revenue Manager about your target positioning and comp set.
2. Relevance Factor: Not every competitor counts equally. The closer a competitor's rate is to yours, the stronger the signal, so DIAMO weights each by relevance.
3. Booking Pace: DIAMO compares rooms already sold for a night against what it expects by now, based on your occupancy target and booking curve. Ahead of pace, it raises the price to capture demand; behind pace, it lowers it to stimulate bookings.
4. Price Limits: Your floor (lowest you'll sell for) and ceiling (highest). After the other levers run, DIAMO pulls any rate that falls outside these back within bounds. If your floor is constantly raising the price, the engine wants to go lower than you allow; if your ceiling is constantly capping you, you may be leaving money on the table on high-demand nights. Either pattern is worth revisiting with your Revenue Manager.
When to reach out
- Your floor or ceiling steps in on most nights — usually a sign your guardrails or comp set need a tune-up.
- Booking Pace pushes hard in one direction across a whole season — likely a seasonal or target-occupancy adjustment rather than a per-night fix.
- A competitor in your set doesn't belong — this affects both Market Positioning and Relevance Factor.