It is part of the AirBnB platform and is easily accessible as soon as a user logs on to manage the listing. So, without further ado, let’s dive into the different pricing options available.ĪirBnB Smart Pricing is obviously the easiest dynamic pricing tool to implement. Each of these pricing platforms offer some form of automation, use some sort of data to help guide actions, and can push to at least one of the popular online travel agencies (OTAs). Each of these tools have varying strengths and weaknesses that determine the quality of fit for each vacation rental portfolio. In an attempt to be as exhaustive as possible, this article will cover seven different pricing platforms: AirBnB Smart Pricing, Wheelhouse, PriceLabs, Beyond Pricing, RateGenie, Perfect Price, OctoRate, and Quibble. Vacation rental market prices and availabilityĪmenities, number of rooms, unit occupancy, location, and listing qualityĪdditional discounts modifying the base rate When evaluating automatic pricing tools for vacation rentals, you want to ensure its based on good data, the model and algorithms deliver the desired results, and it has the ability to customize as much as possible to your property and revenue management strategy.ĭynamic pricing tools should consider when generating rates and/or allow customization of: The best tools use advanced mathematics and pricing algorithms to analyze a robust dataset (both historical and real-time data from the market and property) and generate projections and pricing. Ideally an automatic dynamic pricing tool would replicate and improve upon the work that a vacation rental revenue manager would normally do. Any revenue management program has to adjust to developing market conditions and internal performance and dynamic pricing tools allow property managers to do just that. Revenue management tries to maximize revenue for a limited and perishable resource (room nights) through a combination of marketing, distribution, stay restrictions, and pricing.
Industries and business are usually good fits for dynamic pricing if:Ĭapacity or inventory is relatively fixedĭemand varies by purchase and actualized timeįixed costs are relatively high compared to variable costsĭynamic Pricing is the frequent review and changes of nightly rates and it is absolutely essential to any vacation rental revenue management strategy. Below we provide a dynamic pricing overview, a review of several pricing platforms, and then a side-by-side comparison to quickly get you going down the dynamic pricing path.ĭynamic Pricing is typically implemented either as a response to changing competitor prices in transparent markets or in any business with fixed inventory. But don’t worry, RevPARTY is here to help you claim back your money and your time. We know you’re hard-pressed for time and don’t want to spend hours researching and attending demos. You may not be a revenue management or data analytics expert. There are multiple tools available in the vacation rental marketplace that help vacation rental managers effectively and efficiently price their units. Luckily, many great minds have set out to solve this problem: increasing revenue through pricing with limited time.
There’s just too much money left on the table if you don’t use dynamic pricing.
Here at RevPARTY, we’ve had clients that were already using automatic pricing tools but after some revenue management consulting saw revenue increase by 25%. Some case studies have shown that implementing dynamic pricing can increase revenue by up to 40%. Even if you have a capable person (or team) that focuses on revenue management, it is still much harder for a vacation rental to implement a pricing strategy compared to traditional businesses like hotels and airlines (for an in depth dive as to why check out “ The Difficulty with Data”).īut just because its hard isn’t an excuse to ignore it. Pricing, stay restrictions, discounting and promotions, channel distribution, marketing, and data analytics are all parts of revenue management and can easily slip through the cracks. And that doesn’t even include revenue management!
#Beyond pricing software#
Its hard being a vacation rental manager! If you’re a solo operation than you’re wearing multiple hats as you take care of guest communication, cleanliness and quality control, arrival and departures, reputation management, accounting, and all of the software and systems needed to be competitive in today’s market.
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