April 13, 2022
Dynamic Pricing Tool Must-Haves for 2022
New for 2022, the features most important for vacation rental management revenue strategies!
More and more vacation rental managers are turning to dynamic pricing to optimize their revenue potential by keeping their rates as flexible as possible. By adjusting rates—even the smallest amount—based on a variety of market factors, property managers can get the right property in front of the right guest at the right time—all for the right price.
Dynamic pricing tools help property managers analyze numerous points of data and make pricing adjustments easily and most accurately. And when paired with the industry expertise of a revenue management professional, a sophisticated dynamic pricing tool can push a vacation rental management company to new heights.
Here are some dynamic pricing tool must-haves to consider before you buy.
Revenue management is a complicated matter, but that doesn’t mean the software has to be difficult to use. In fact, you want a tool that’ll give you time back in your day, not add to it. Here’s a shortlist of top user-friendly qualities to look for in your new dynamic pricing tool.
- Easy to Use
Above all else, a dynamic pricing tool should be intuitive, integrative with your property management system (PMS), and able to provide the information you’re looking for in a digestible manner. That could look like dashboards that summarize information, robust filter options, and a resource library for additional information or assistance when needed.
- As Few Clicks As Possible
Nothing sucks time out of a busy day like unnecessarily clicking around a tool, trying to input or retrieve information. So the best dynamic pricing tools have eliminated as many clicks as possible, making it easier to view listings, make decisions, and work efficiently. Any process that simplifies the management of a portfolio of properties, like manual adjustments options right on the home screen, is a godsend to a busy vacation rental manager.
- Quick Load Time
It doesn’t matter how big or small your portfolio is—waiting for a page to load or scrolling for ages is enough to make any property manager want to chuck their computer across the room. So look for any dynamic pricing tools with quick page and data load times. And when you demo the product (which you should before you buy!), ask to see it handle a portfolio larger than yours. Because you have big dreams, and your tools should be able to scale with you.
- Bulk Editing
Batch editing and grouping can make managing pricing for certain properties even easier. With these functions, you can organize groups of properties together using tags so you can make similar adjustments to their rates (for example, for condos in the same building, or cottages on the same acreage or along the same street). Look for tools with features that allow bulk edits—that is, you can make changes to multiple properties at one time, rather than each individual listing.
- Date-Specific Adjustments
On the occasion where you need to make changes for a specific date (holidays, for example, or due to weather conditions), you’ll want a dynamic pricing tool that can handle date-specific adjustments.
- Rolling Adjustments
Using indefinite pricing adjustments that occur based on time, like a decrease in rates as the booking window closes, can be hugely beneficial to property managers looking to capture more last-minute travelers. But these kinds of adjustments need more regular upkeep in order to carry forward. Make sure your dynamic pricing tool can accommodate these kinds of rolling adjustments.
Dynamic pricing is a tricky business. There are a variety of factors that impact vacation rental rates, from seasonality to the aesthetics of the individual property. It can be helpful to choose a dynamic pricing tool that’ll explain why certain adjustments were made.
- Demand-Based Data Models
The best revenue management tools can show you all kinds of data sets that are critical for your dynamic pricing strategy. One of those data models is “forward-looking occupancy,” or what rates could look like in years to come based on your minimum and maximum rates, historical data, and market fluctuations. It can be helpful to see these future projections—for you and your homeowners.
- Visibility Across Channels
If you pick a dynamic pricing tool that integrates right to your PMS (which you should!), your pricing adjustments will automatically show on your website pricing calendar. But an additional dynamic pricing tool must-have is the ability to make edits to all of your third-party listings as well. It’ll save valuable time (as we said, the fewer clicks the better!).
- Room for the Human Element
Dynamic pricing tools are powerful and smart, but sometimes you need human insight to make important decisions. You, someone from your team, or an outsourced expert revenue manager should manage your pricing tool, so having the best features available will reduce the amount of time needed. A revenue management professional can make adjustments that an algorithm just wouldn’t catch, like the quality of a listing’s photos, the modernity of the property, and the current accessibility of amenities.