Vacation Rental Dynamic Pricing Software

In the old days, vacation rental managers used to set a few static rates: think weekday, weekend, peak season, and off-season. These days, technology (like Art!) enables managers to set flexible rates for every night that update regularly based on demand. This is dynamic pricing, also called demand pricing or surge pricing in some industries. It’s become the new standard for successful vacation rental revenue management. That’s because, when executed properly, dynamic pricing helps you capture the best rate for every booking—delivering a better return to your homeowners and making your business more profitable. 

The pricing models that power Art automatically analyze market data that we collect from other rentals in your area. We first use this data to set an initial base rate, and then look at the real-time demand for similar properties and adjust your nightly recommended rates accordingly.

Vacation rental pricing is never a set-it-and-forget-it job, even with awesome dynamic pricing recommendations. We designed Art to provide a great starting point and support the kinds of customizations and overrides that we know will be required from time to time—including seasonal overrides, minimum stays, and bulk percent-based or fixed changes. You’ll also be able to fine-tune each property’s likelihood to be impacted by market demands with our Market Sensitivity dial, a new feature that’s unique to Art. 

We believe our models are the best in the industry because they are thoughtfully designed to compare every short-term rental to a small subset of relevant properties that share similar attributes (what our data scientists call a cohort). In our experience, many times, other dynamic pricing recommendations don’t hit the mark because they’re based on a large aggregate of rentals that may not actually compare to yours, even if they’re located in the same general area. 

We build our carefully curated cohorts (say that five times fast) to help deliver more accurate pricing recommendations. Our customers notice the difference: “Thus far, it has been one of the best pricing tools I have used, and I’ve played with a lot of them,” says Shana Lewis, PMI Summit Vice-President. “The product data being produced and used to generate pricing is more realistic—it doesn’t just bottom-out at the lowest dollar.”

If you don’t have a dedicated revenue manager or rate specialist on your staff, or if you just want a little more hands-on support for your portfolio’s VIP properties, we can help! You can upgrade your Art subscription to include full-service revenue management from our experienced team. Schedule a demo for more details.