Vacation Rental Software’s Impact on Dynamic Pricing
Dynamic pricing is an extremely effective tool when pricing vacation rentals to maximize their revenue based on supply and demand. When your revenue management and vacation rental software pair up, it can be utilized in multiple different situations such as holiday rates, high occupancy weeknights, weekend rates, and during promotional specials. The days of changing rates due to single seasons and set once per year is far behind the vacation rental industry.
A single key benefit to dynamic pricing is the ability to adjust rates frequently to optimize your occupancy performance. The structure behind Dynamic Pricing Providers in the Vacation Rental Software industry is they use AI technology to analyze your local hospitality market in real-time to recommend the best prices. This is huge to help you stay competitive. PerfectPrice provides a data sheet called “AI Dynamic Pricing for Vacation Rentals”. Click here to down the PDF. A few more examples of Vacation Rental Revenue Management providers include PriceLabs and Beyond Pricing.
These Revenue Management providers work closely with your Vacation Rental Software, also known as your Property Management Software (PMS) and your channel managers. Their ultimate task is to remove the manual operations and labor to determine pricing by re-evaluating the market and setting rules based on occupancy and average rates. Many Vacation Rental Management Companies and owners do not comprehend that vacation rental rates do fluctuate far more than anticipated.
Your Vacation Rental Software and Dynamic Pricing Partnership
All Property Management Software’s will interpret and handle nightly rates differently than one another. Before implementing dynamic pricing, check with your channel manager and PMS to verify how their rate feed works. This is one of the largest pain points in the short-term property management world is failed rate feeds.
Secondly, verify the reports your PMS provide and if they are connected accurately with your revenue management software. For example a beneficial report that TRACK Hospitality Software provides is the Unit Occupancy Report.
Finally, verify if your PMS will be able to handle multiple rates changing daily.