UNDERSTANDING DYNAMIC PRICING
UTILIZING OUR DYNAMIC PRICING SOFTWARE MEANS YOU CAN EXPECT 10%-30% INCREASE IN PRICING AND OCCUPANCY. THEREBY EITHER DECREASING OUR FEE OR WIPING IT OUT ALL TOGETHER.
What is Dynamic Pricing?
In short, it's a daily price update to your listing that takes into account day of week, length of stay, time from booking to stay, special events, holidays, comparable homes (their prices and occupancy), nearby hotels (their prices and occupancy), and approximately 100 other data points.
Daily optimization: This means prices for your home will adjust every day. A price may move down as an open date gets closer and remains unbooked. The software will start to lower the price (never going below the previously set minimum) in order to appear more attractive for potential travelers.
When does Dynamic Pricing become useful?
Well, just about always. But certainly when going live with a listing. Why? When a property has no reviews or guest stays, the online platforms interpret that as a negative for search rank result purposes. To be effective, pricing should be composed of a base rate, a minimum rate, a maximum rate, a discount strategy, and availability settings.
Minimum Rate: This would be the rate that can be set with SFPS and owner input, and the price per night, as determined by the software, will never fall below this amount.
Base Rate: This is the rate from which the software will base its pricing (both going up and down). Prices will base up for peak seasons, special events, holidays, and any surge in inquiry & booking activity for your home, nearby homes, and hotels.