How Does Dynamic Pricing Work?
Have you ever been searching for airline tickets or hotel rooms and noticed different prices each time you search? Dynamic pricing is popular among these business models, and we’ve joined in, too. As a commitment to being the leader in vacation rental management, we’ve invested in this technology to help our owners earn every dollar they deserve.
At Southern Vacation Rentals, we utilize a dynamic pricing model as part of our vacation rental management program to set our rates. Dynamic pricing uses artificial intelligence to monitor a number of factors to help set rates. These factors include:
- Last year’s rates
- Market demand and trends
- Competitor rates
- Local events such as music festivals or airshows
These rates are constantly fluctuating and may be different based on when you are searching to book. For example, rates during mid-July are going to be much higher than if you were to visit in early November. We are confident that using a dynamic pricing model helps maximize your rental revenue and occupancy and have the stats to prove it. Since switching to a dynamic pricing model, we’ve seen a 10% average increase in occupied nights, allowing us to achieve revenue and occupancy goals. After all, you should earn every dollar you deserve!
Sounds great, right? And it is! Dynamic pricing helps us see trends in our market as well so that we can make adjustments to rates accordingly. It’s important to remember, though, that dynamic pricing is not a “set it and forget it” piece of technology. Our team of Revenue Managers oversees our dynamic pricing software to ensure rates are always where they need to be. Adjustments are made in real-time, ensuring that your property is always priced where it needs to be.
Want to get in on cutting edge technology in the vacation rental industry? Contact us today to become a part of the Southern difference.