What is Daily and Seasonal Pricing?
With travel coming back in full swing and occupancy rates skyrocketing through the roof for your short-term property management company you want to make sure to not leave any money on the table. Understanding the strategies behind your pricing structure is extremely important. Dynamic pricing is just the beginning. In this article we will discuss the importance of unit pricing and seasonal pricing to maximize your revenue and increase your occupancy rate.
Layers of Rates
Pricing your units accurately according to unit type, location, node, season, amenities and more is extremely important to drive bookings and make sure you get the most revenue out of your properties. That is why there is value in learning the differences between Daily Rates and Seasonal Rates. TRACK Property Management Software recently enhanced their pricing operations from only offering seasonal and daily rates to adding Unit Type rates. But do not worry, we are here to help you with your questions. We will start by covering the four different rates of Unit Type Daily, Unit Type Seasonal, Unit Seasonal, and Unit Daily. (Yes, the difference is we added the term Type in the middle which makes a big impact saving you time and removing room for error.)
Let’s start with a brief introduction of Daily vs Seasonal.
Daily rates are rates that are updated as stated, daily. This is for property management companies that are in the details on maximizing revenue on a granular level. Depending on the size of your operation and employees, you might have a revenue management team on site or utilize a Revenue Management partner such as PerfectPrice, BeyondPricing, or PriceLabs. When you are updating your pricing you will need to analyze competitive daily rates for up to a year in the future. With that being said, that is not necessarily the route for all vacation rental management companies, that is when seasons come into play.
When looking at seasonal rates they are rates that last for a longer period of time. An example would be if you are slower in the summer months and need to decrease your rates you can set an extended rate to a unit from June to August. When implementing your seasonal rate strategy, you will still use competitive rates year over year to determine your rates.
Now that you know the difference between Daily and Seasonal, let’s understand why adding the unit type in is an important enhancement.
Unit Type Pricing
When we are discussing Unit Daily and Unit Seasonal (without the type) this is a very manual process. You will need to update each unit individually leaving room for error and the chance of double bookings or incorrect prices. That is where the Unit Type is beneficial. Unit type allows you to select groups of units with similar characteristics to set the price by mass. An example of this could be you have 1,200 properties and 800 of them have 2 bedrooms, similar amenities, in the same location. If you are not utilizing the Unit Type, you would need to go in and manually update each of these units. Selecting a Unit Type allows you to change all 800 with a single click of an update button. This will save you time, resources, and remove room for error.
If you’d like to download a recorded demo on TRACK PMS Pricing that we presented at the 2020 VRM Intel Data and Revenue Management Conference. Please click here.