Why do you feel intimidated when you hear the phrase dynamic pricing for your vacation rentals? There is absolutely nothing to be afraid of. Dynamic pricing is simply one of the latest tools and services designed to help vacation rental owners and managers to improve their booking. You can refer to dynamic pricing as your very own vacation rental rate wizard which will help adjust your rates based on demand and supply and allow you to make the most money possible.
To be more accurate and to help it click you can refer to dynamic pricing as a new and improved version of yield management. Although yield management had a very negative impression because of its association with vacation rentals for a long period of time, dynamic pricing, and its latest version allows vacation rental owners or managers to raise or lower the price to take maximum advantage of demand and supply. Simply put when you use dynamic pricing, you do not set a firm price. Instead, the price changes based on the changing circumstances like an increase in demand at a certain type, the type of customer you are targeting and also the changing marketing condition.
Dynamic pricing actually starts with understanding the customer behavior and then using the knowledge and information to make informed pricing decisions. Because this is a very competitive market, as more and more people choose to travel during vacations, you should understand that it’s dynamic pricing that is at the heart of earning huge revenues from your vacation rentals.
During peak seasons the market conditions are uncertain as the load of travelers is great. If you offer quality service, more and more people would like to avail accommodation with your vacation rental and this is when dynamic pricing can work for you. You can set up high prices during seasons and then lower them as the season ends. Dynamic pricing allows you to increase your profits because you can change your vacation rental prices in real time and capture the full value. The internet has led to the ease of price comparison and therefore travelers can now easily check and compare rates for various vacation rentals located at a certain situation. Using dynamic pricing you can optimize your price offers and compete well with competition around you and extract value and reallocate demand for your own profits.
One of the best qualities about dynamic pricing is that it allows you to predict capacity and you can reallocate prices according to demand. You can even out your revenue over the season and also get more advance bookings allowing you to get maximum business even during peak seasons and thus increasing your profits. When managed well dynamic pricing will offer you a very attractive and feasible path to increase your revenue and profit even in this competitive age. According to studies, implementation of dynamic pricing strategies has helped vacation rentals increase their revenues and profits by a massive 20%.
While you’re strategizing for dynamic pricing, make sure your vacation rental listings include all of the relevant information to capture potential guests’ attention. We’ve provided you with a checklist to show you the do’s and don’ts of listing your properties.
About VacayStay Connect
VacayStay Connect, the leading full-service distribution solution for the vacation rental industry, delivers property managers of both homes and resorts increased bookings across a variety of global travel sites like HomeAway, VRBO and Booking.com, as well as a network of exclusive membership and loyalty channels and branded websites. Integrated with a majority of leading property management systems and channel managers, the VacayStay Connect Platform connects more than 100,000 vacation rental properties to millions of leisure customers to provide them an unparalleled shopping and booking experience.