In a highly-competitive seasonal market like hospitality, your rental’s success depends heavily on the price, so as a property owner or manager, vacation rental price optimisation must be on top of your responsibilities, among the most challenging ones.
Many highly-experienced short-term rental managers see their properties as prosperous and blooming. They are happy to have solved the trouble of filling their occupancy calendar very quickly. But how can they make sure they are not underselling their property and leaving money on the table?
Long gone are the days that vacation rental managers just needed to set two fixed rates for high season and low season. Fixed rates mean utter failure in a volatile market like today’s short-term rental industry. Only dynamic pricing can respond to dynamic demand, boost occupancy rates and guarantee revenue growth.
What is Vacation Rental Dynamic Pricing?
Dynamic pricing is the practice of continuously adjusting your vacation rental’s price of nightly, weekly and monthly rate based on changes in supply and demand and real-time market data. Setting dynamic, tailored prices for your holiday rental can help you avoid low occupancy rates and boost your revenue.
The Benefits of Vacation Rental Price Optimisation
Maximise Your Return
Dynamic pricing helps you increase your revenue by setting the highest-but-most-competitive prices possible. You neither underprice nor set irrational prices for your property to leave vacancies on your vacation rental calendar.
Keep Your Bookings Flowing
Some nights are like low-grade products in an inventory, hard to sell and regrettable to leave unsold. Dynamic pricing helps you sell out those nights by offering the best nightly prices possible or lowering rates to entice last-minute reservations.
Be Ahead of the Competition
Thanks to numerous online booking websites and channels, the supply for vacation rentals is abundant, making the competition fierce for the vacation rental managers. Dynamic pricing will attract price-motivated accommodation seekers to your property and increase your market share.
Dynamic pricing is a totally data-driven method, in which pricing is calculated based on the analysis of real-time market data. In this method, a base rate is defined, and then it is optimised by the analysis of the past and future supply and demand data.
Dynamic pricing algorithms change based on the factors which influence the supply and demand including seasonality, local history, special events, holiday demand predictions, day-of-the-week demand and market activity.
Revenue Management Software
Frankly, vacation rental pricing is nothing short of rocket science. Manually setting dynamic prices entails constant data collection, diving deep into data, calculations and probability considerations. It gets even more difficult if you run multiple vacation rental homes in various multiple locations around the world. Besides taking too much time and energy, how can a vacation rental manager ensure that they have chosen the best possible rates for their property?
Luckily, there are a variety of revenue management software providers and dynamic pricing solutions out there that come to rescue busy short-term rental managers. These software do short-term rental pricing as easy as ABC and save up tons of management time and effort.
In addition, dynamic pricing tools have the ability to provide tailor-defined price recommendations by analysing market data. The hosts can also override the recommended prices by themselves. They easily integrate with OTAs like Airbnb and many PMSes and channel managers.
Vacation Rental Price Optimisation: Best Dynamic Pricing Solutions for Vacation Rentals
1. Beyond Pricing
Beyond Pricing will automatically update your prices daily based on changes in supply and demand. It uses hyper-local analytics to maximise revenue growth for vacation rental owners and managers. All types of vacation rentals can use Beyond Pricing whether they have one property or a dozen.
Pricelabs is an advanvced dynamic pricing solution that uses a listing’s historic and future performance to recommend a base rate. Then it applies further adjustments to it based on data-driven insights as a percentage change. For the vacation rental managers with a great deal of experience, it provides the option to override its recommended prices based on their own knowledge of the market.
Wheelhouse is a vacation rental dynamic pricing tool that promises to help you earn 10-40% more from your rental investment. You can customise your rates based on seasonality, last-minute discounts and other factors in line with your rental’s amenities. It analyses the data every night to make sure you have the best market price set for your listings.
4. Perfect Price
Perfect Price is a pricing software, which integrates with the best property management systems. It guarantees a growth in your revenue by artificial intelligence recommended prices and helps you get your property booked for longer stays by implementing sophisticated length of stay strategies.
Why do you bother spending great deals of time and energy calculating inaccurate prices for your vacation rental? You can take the hassle out of your dynamic pricing process by using dynamic pricing solutions specialised in vacation rental pricing.
If you are interested in boosting your occupancy rates and maximising your revenue and found our recommended revenue management software fascinating, enter the dynamic pricing world by signing up for their free trials right now.