Understanding Our Short Term Rental Pricing Strategy
When we apply our Short Term Rental Pricing software to your property listing, you can expect anywhere from 10-40% increases in pricing and maximizing occupancy. With this alone, your full service management fee is lowered or possibly completely erased all together! Let us show you how to start and elevate your rental business.
What Exactly Is Dynamic STR Pricing?
Basically, it's an updated daily nightly rate for your listing that takes factors in the day of the week, length of stay, time from booking to check-in date, local or special events, holidays, comparable homes in the area as well as their pricing and occupancy rate, nearby hotels as well as there prices and occupancy rates and approximately 100 other various data points.
Prices for your home will adjust on an everyday basis. Prices may decrease as a date gets closer and is still unbooked. Our software will start to lower the price, but may never go below a set minimum amount, in order to appear more attractive for potential guests. This optimizes occupancy with the theory that a lower last minute rate is better than nothing at all.
What Is A Minimum Rate?
Simply put, a minimum rate would be the rate that can be set by us with owner's input and the dynamic pricing software will never price your nightly rate lower than this set minimum, for any reason.
How Really Effective Is Our Pricing Strategy?
Highly! Even more so when a property listing first goes active. When a home has no reviews or bookings yet, online platforms like Airbnb, Booking.com, HomeAway/VRBO and many others construe that as a negative for search engine results. Effective pricing should be controlled by a base rate, with a set minimum discounted rate, a discount strategy for unlikely booking days, and your availability settings.
What Is This Base Rate You Refer To?
A base rate is amount which the software will base pricing from. Depending on certain factors, you daily rate will automatically increase when it's likely your home is more desirable or lower the price when your home is less likely to get a booking. The nightly rate will increase up from the base price for peak seasons, special events, holidays, and any surge in inquiry & booking activity for your home, nearby homes, hotels and other properties we manage. Alternatively, your nightly rate will decrease down from the base price set for last minute potential bookings that generally go vacant, bad weather or low travel seasons and multiple other factors.
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