UNDERSTANDING DYNAMIC PRICING
What is Dynamic Pricing?
In short, it's a daily price update to your listing that takes into account day of the 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 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 we input and price per night will as determined by the software will never fall below this amount.
Base Rate: This is the rate in which the software will base from (going both up and down). Price will base up for peak seasons, special events, holidays, and any surge in inquiry & booking activity for your home, nearby homes, hotels and other properties we manage.