WHAT IS DYNAMIC PRICING AND DOES IT HELP?
Demand changes all the time, the weather changes, events change, hotel occupancy changes, etc. As long as things are changing, why shouldn’t pricing change as well? Welcome to dynamic pricing. Dynamic pricing utilizes algorithms to calculate and adjust prices in real-time. With this pricing strategy, managers can optimize daily rates to boost bookings and increase profit margins. For example, a dynamic pricing system will adjust pricing upwards during a “peak period” – say, a holiday weekend or a popular local event – and will adjust pricing downwards to reflect softening demand to avoid vacancy and capture possible bookings!
Is it all just technology?
At Awaysis, we use a combination of dynamic pricing and human analysis in order to select the most optimal price and pricing strategy for our rentals. In fact, no rental has the same price or strategy as we take a very careful, measured approach to ensure that each rental gets the strategy that’s 100% right for it! When conducting our initial analysis on the property, our team checks local competitor rates (both independent rentals and motels/hotels), we check rates depending on seasonality (for ex. Winter vs. summer), and we balance what we find against what each rental has to offer. Are there amenities? Is free parking included? Does the rental have a work space? Once we’ve gone through that process, our team of experts comes up with the rentals unique “base price”.
- Base price à the price level onto which all further adjustments are applied as a percentage change
- You can consider this your “average”
What factors does our dynamic pricing system consider?
At Awaysis, our software analyzes historical and current booking data to generate pricing recommendations. But that’s not all our system does. Using a series of advanced algorithms, our dynamic pricing software looks at a variety of other factors including:
- Seasonality à regional seasonality is established based on historical trends in both vacation rentals and hotels
- Day of the week à our software looks at future occupancy patterns in your hyper-local area to determine day of week trends
- Lead time à last-minute and far-out adjustments ensure rentals aren’t leaving money on the table while still maximizing occupancy
- Holidays & Events à Our software looks at the rentals local area to determine what dates are high in demand. It also maintains a calendar of holidays to determine dates where prices should be kept higher irrespective of demand
Are there any other cool features?
Yes! Our dynamic pricing software has dozens of useful features to let us earn you more! Some of our favorites include:
- Setting minimum prices
- Last minute adjustments & discounts
- Orphan day pricing (think one vacant day sandwiched between two bookings)
- Day of the week and seasonality pricing customization
- Occupancy based adjustments
Interested in learning more about we price our rentals and leverage the power of technology combined with the expertise of our team? Contact us right now and we’ll set up a free consultation!