Top revenue management tips from our Solution Consultants
Welcome to a special edition of The PriceLabs Insider, presented by our dedicated team of Solution Consultants! ???
Building on the valuable insights from our last edition, which equipped you with the essential tools for optimizing your Airbnb pricing strategy during the festive season, this edition is truly exceptional. We've gathered the top revenue management tips from each Solutions Consultant at PriceLabs. These strategies have proven instrumental in helping numerous property managers worldwide fine-tune their revenue approach and achieve peak occupancy.
Solutions Consultants working with hosts, property managers, and revenue managers from North America, South America, Europe, and APAC regions share their wealth of expertise in this newsletter.
Dive into this edition to discover a wealth of expertise designed to elevate your revenue optimization game!
Adam Blatt, Solutions Consultant Northwest USA (English)
If you are in a market with strong weekend demand and limited weekday demand, you may struggle with filling mid-week gaps between two-weekend bookings, such as a 3-night gap from Monday to Thursday. Some customers may spend much time applying manual pricing changes to discount these gaps, but you can automate this process to save time and encourage bookings.
PriceLabs offers a default 20% discount for 1-2 night gaps between unavailable dates. You should also customize your orphan day pricing to automate and save time for 3- or 4-night gaps. Ensure discounts apply only to weekdays, preserving higher prices for Fridays and Saturdays. Use the "Weekend Days" option to treat Thursdays as weekends if they're in high demand. With these PriceLabs customizations, you can optimize pricing for varying gap lengths and days, boosting bookings efficiently.
Alessandro Poncini, Solutions Consultant Europe (Italian)
Quando si vuole capire come il mercato sta performando rispetto allo stesso periodo dell’anno scorso, per comprendere il ritmo della domanda, è opportuno comparare il grafico di 'pacing' che trovate nella sezione dei 'dati del vicinato'. Questo ci serve per non colpevolizzarci su risultati non ottimali nel caso in cui anche il mercato non stia performando, ma soprattutto per capire fino a dove spingersi quando il mercato ha un ritmo superiore all’anno scorso.
Amber Williams, Solutions Consultant Southeast/ Gulf Coast USA (English)
When you're concerned about the bookings coming in, whether it be shrinking booking windows or key dates that need to convert, I recommend reducing your minimum length of stay before reducing your rates. Then, wait 1-2 weeks before considering if you also need to reduce rates.
Anant Singh, Solutions Consultant, Mid Market (English)
In order to maintain a healthy occupancy rate, you should ensure that the recommended prices on your calendar are not frequently equal to your minimum prices during any month. Suppose you observe that your recommended prices often match your minimum price. In that case, you should proactively adjust and lower your minimum price to keep your rates competitive and ensure that your occupancy rate isn't adversely affected.
Example: When your recommended price ($500) is often equal to the minimum price ($500). If this is the case, you should consider reducing your minimum price.
Athul Mohan, Solutions Consultant APAC (English)
When setting a Date Specific Override to get higher prices for certain dates like NYE, use these two best practices:?
Aviva Llorens, Solutions Consultant USA (English)
I suggest getting familiar with the calendar tooltip! Whether you do it by going through the knowledge base article or asking one of our team members for a detailed walkthrough, learning to navigate the tooltip can help you find a lot of information on how each day's rate is being calculated on your calendar and help figure out which customizations to adjust if needed.?
Becca Madigan, Manager, Solution Consultant USA?(English)
It's not a new feature and a little more advanced, but it can be powerful and impactful for users who want to adjust prices a lot. The Occupancy-based Adjustments look at each listing's performance and adjust prices based on occupancy over various booking windows. Savvy users can review their occupancy profiles several times yearly to fine-tune the occupancy-based adjustments to match their goals and expectations. If you drop prices at the last minute for dates that haven't booked, choose the "super aggressive discount" preset profile or customize the profile to ensure that prices automatically drop when you want them to, instead of doing it manually. Remember that your expectations might change throughout the year as your market goes into different seasons, so you may need to make these adjustments accordingly.
Daniel Zammata, Solutions Consultant Latin America (Spanish)
En la gestión de ingresos para propiedades de cortas estadías (STR), usar Conjuntos Comparativos (Comp-Sets) en PriceLabs es clave para fijar precios competitivos. Al crear un Comp-Set con propiedades similares e integrarlo en el Gráfico de Precios Futuros bajo Datos del Vecindario en PriceLabs, puedes comparar efectivamente tu estrategia de precios con las tendencias del mercado y los precios de la competencia. Esta comparación, especialmente contra los precios recomendados por PriceLabs, ayuda a entender la posición de tu STR en varios percentiles de precio, asegurando que tus precios no sean ni muy altos ni muy bajos. Revisar y ajustar regularmente tus precios en respuesta a las tendencias del mercado y las estrategias de los competidores es crucial para mantenerte competitivo y maximizar tus ingresos.
David Veirs, Solutions Consultant Southwest USA (English)
PriceLabs provides valuable data for owners and property managers to enhance conversations. I suggest utilizing the Neighborhood Data tab for insightful discussions. The Future Prices chart quickly compares nightly rates with local competitors, helping adjust pricing for competitiveness. The Occupancy chart, with Last Year's Data and Pickup options, aids in understanding market trends. Combining both charts identifies opportunities for optimization; for example, if the minimum nightly rate is $500 while competitors drop to $250, adjusting the threshold based on demand trends can boost bookings. Start with the Neighborhood Data section for a compelling data-driven narrative.?
Deepanshu Nihalani, Solutions Consultant APAC (English)
In 2023, APAC markets like Australia witnessed atypical winter occupancy trends, with a 10-15% decline compared to the previous year. To navigate this scenario effectively, property managers should harness data insights from neighborhood data. Implementing aggressive occupancy-based pricing adjustments, exploring reductions in minimum nightly rates through date-specific overrides or custom seasonal profiles, and offering length-of-stay discounts are essential strategies. Launching early-bird offers before the low season and scrutinizing the Market Dashboard, particularly the 'Demand & Supply' graph , can guide pricing decisions based on market dynamics. Monitoring year-over-year occupancy comparisons informs whether an assertive pricing approach, be it discounting or increasing prices, is necessary to optimize performance amidst fluctuating market conditions and sustain favorable occupancy rates.?
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Fausto Vieira da Silva, Strategic Partnerships Lead (Portuguese)
Algumas dicas:
Jayati Chakravarty, Solution Consultant, Mid Market (English)
Essentially, in this industry, we are dealing with a perishable commodity; any day that goes by unoccupied is just lost revenue. As the date comes closer, the probability of it getting booked decreases. As such, the last-minute pricing as per the market and setting a different minimum price for far-out really helps adjust the rates, make it more attractive, and help get that boost.?
Jethro Cutamora, Solution Consultant Mid Market (English)
Use PriceLabs' Hyper Local Pulse to explain what's happening in your neighborhood (using the improved Neighborhood data). Tweak your pricing (base and minimum) based on how the market is trending, and make sure to keep a healthy gap between the minimum and base price (20-30% is ideal).
Joana Pires Coelho, Solutions Consultant Europe & Brazil (Portuguese)
Use the KPI metrics we recently launched, especially the Occipacy vs. market (with booking windows more in line with your own trends), the Date of Last Booking, and the Market Penetration Index, then sort their order and be able to focus on certain properties that might need more attention and to action on strategic decisions. It is also very useful to use these filters and save them. For e.g., create filters with MPI that are <1 and see which properties are underperforming.
Joaquin Lozada, Solutions Consultant Europe (Spanish)
Muchas veces uno se pregunta: '?Cómo estarán mis ventas para determinado mes? ?Están lentas, o he vendido con más antelación? ?A qué precio?' Todo gestor de viviendas de alquiler vacacional o revenue manager se hace estas preguntas para anticiparse y tratar de optimizar el rendimiento.
En PriceLabs, hay unos gráficos dise?ados justamente para responder a estas preguntas tan importantes, las curvas de reserva, que encontrarás en el Portfolio Analytics - Reportes de ritmo. Recomiendo que selecciones la opción 'fechas personalizadas' y elijas este mes, o algún mes próximo en el futuro, y compares con el mismo mes del a?o anterior.
Allí podrás ver cómo se ha ido construyendo el revenue, a qué precios estás vendiendo, con cuánta antelación. Podrás también hacer una previsión en cuanto al porcentaje de ocupación final que puedes esperar, y sobre todo, asegurarte de que el RevPar sea mayor que el a?o pasado.
Kyle Driskell, Solutions Consultant Central USA (English)
Want to achieve maximum revenue and return on investment? Think like a guest. Guests want transparency, comfort, and security in a friendly and clean environment for a fair market price without any hidden "extras" or too many restrictions on what they can do. Prioritize your guests, and your revenue will follow.
Leonardo Reyes-Gonzalez, Solutions Consultant Europe (Spanish)
During the low season in Spain (mid-September to mid-February), PriceLabs users often seek guidance when bookings fall below expectations. In response, I comprehensively review their listings, considering market developments, weather forecasts, and any major regulatory changes. Focusing on specific underperforming listings, I assess their health score, review base and minimum prices, and validate Pricing Recommendation Nudges . Utilizing the powerful Neighborhood Data tab with Future Prices and Occupancy graphs, I analyze recommended prices and market occupancy levels to provide tailored recommendations. For instance, if PriceLabs suggests lowering the base price in the Base Price Help tool, I recommend adjusting the minimum price accordingly. Evaluating the occupancy graph aids in determining the appropriate minimum price and considering promotions on different channels to optimize bookings during the low season.
Marie Fages, Solutions consultant Europe (French)
Le lancement de notre nouvel algorithme en septembre, Hyper Local Pulse, a offert à nos clients la possibilité de profiter d'une tarification de plus en plus approfondie et précise, ainsi que de fonctionnalités encore plus dynamiques. La révision des prix de base inclut désormais une saisonnalité plus affinée, réduisant le travail lié aux profils saisonniers.
Il est recommandé de faire le test avec le moins de personnalisations possible pour identifier celles qui sont réellement nécessaires.
Il est également intéressant de comparer les prix avant et après le changement, et de suivre l'évolution de vos tarifs ainsi que l'impact sur la performance de votre annonce.
Les ajustements de prix de dernière minute en fonction des données du marché représentent une avancée incroyable, permettant de réagir plus rapidement aux changements de tendance du marché.
Monique DeLorenzo-Pomeroy, Solutions Consultant East Coast USA (English)
My biggest tip is pacing charts for users with historical data. If you are concerned about forward-looking reservations and your pricing looks right, check your booking curves YoY. Oftentimes, lead times are perceived differently by an owner or PM than they actually are, and the booking curve can help identify if you are pacing behind or if everything is actually on target.
Siana Vesselinova, Solutions Consultant Europe (English)
Save time and automate the process of filling short stay gaps at the last minute with PriceLabs. Instead of manually adjusting last-minute availability using Date Specific Overrides, utilize Dynamic Minimum Stay Restriction and the enhanced Orphan Day Rule feature. In Stay Restrictions, define your Orphan Gap criteria and specify the booking window (e.g., gaps of 1 night within 0-14 days). This allows flexibility for shorter last-minute gaps while restricting this option for future dates. Use 'Customize Orphan Day Prices' in the General Customizations tab to set premiums or discounts for these gaps during the specified booking window. With these automated settings, you can efficiently manage your calendar without daily manual interventions, freeing up time for more critical tasks.
Ready to Boost Your Holiday Revenue?
Join our community of savvy property managers, hosts, and revenue managers who continuously increase their revenue and occupancy using PriceLabs. Sign up for a free trial at PriceLabs or book a demo with one of our experienced solution consultants today! Harness the power of collaborative success for increased revenue and hassle-free property management.
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