What is my Health Score and what does it tell me about my listing? (VIDEO)
Your Health Score is designed to be a feedback loop of how well your Base Price is doing where it is currently set. It is essentially a measure of your booking pace and helps you determine whether your listing is booking up too quickly, too slowly, or just right.
As a general rule, if your Health Score is under 60, we need to make some changes. If it is between 60-80, there is room for improvement, but no need to panic. If your Health Score is between 80-100, you are performing well and do not need to make any changes.
Understanding your Health Score
The Health Score is determined by calculating how close your booking percentages are to the ideals. The closer you are to the ideals, the higher your score will be.
A low Health Score can be caused by either being overbooked or underbooked during the ideal booking window.
To monitor your Booking Pace relative to the ideal Booking Pace in your market, hover over the “?” next to Occupancy on your Beyond Pricing Dashboard:
We recommend monitoring your Booking Pace at least every two weeks effectively hone in on the optimal Base Price for your listing.
Adjusting your Base Price based on your Health Score
In general, we advise that if your listing’s performance is “Too Low”, the best next step is to lower the Base Price for that listing by 5-10% to begin to capture more bookings.
Conversely, if your listing’s performance is “Too High”, the next step is to raise your Base Price by 5-10% to start to capture bookings with a higher Average Daily Rate (ADR).
Let's take a look at some examples.
For our listing in Seattle, Washington the ideal booking percentage is 40% booked for the next 30 days and we are 90% booked. The ideal booking percentage for the next 90 days is 18% booked and we are 75% booked. We are much higher than the ideals and have a low Health Score of 50. Action: Increase Base Price
For our listing in Palm Springs, California the ideal booking percentage is 63% booked for the next 30 days and we are 10% booked. The ideal booking percentage for the next 90 days is 31% booked and we are 14% booked. We are much lower than the ideals and have a low Health Score of 30.Action: Decrease Base Price
For our listing in Orlando, Florida the ideal booking percentage is 66% booked for the next 30 days and we are 60% booked. The ideal booking percentage for the next 90 days is 38% booked and we are 36% booked. We are really close to the ideals and have a great Health Score of 93.Action: No Base Price adjustment needed
Hosts have told us that they often use blocked dates to indicate reservations from other channels, so we do count blocked dates as ‘booked’ for the purpose of the booking percentage calculations and the Health Score.
The only exception to this is if you have a large period of blocked days at the start of your calendar, before any available or booked days. In this case, we won’t count blocked days as ‘booked’. We will then calculate your booking percentage from the first day of availability.
But don't worry! Either way, the booking percentages and Health Score do not affect our algorithm or your prices. They’re just guidelines to inform you whether you are booking up too fast or too slow so you can adjust your Base Price.
Mixed performance signals
If your Booking Pacing compared to the ideal booking pacing in your market is "Too High" for 30 days out and "Just Right" or "Too Low" for 90 days out, and vice-versa, the best next steps for your Base Price depend on other factors we can observe. Here are a few questions we like to ask:
- Did you recently change your Base Price? Making this change can have an impact on your booking pacing.
For example, if you recently raised your Base Price too much, you might be overbooked in the next 30 days (from when your Base Price was too low) and underbooked in the next 90 days (because now your Base Price is too high). In this case, we recommend decreasing your Base Price to find a happy medium.
- Do you have a long-term booking or blocked dates in the next 90 days? These factors can have an impact on your booking pacing.
For example, if you have blocked the calendar for two weeks this month so you can stay in your home and you have the other two weeks rented you have done a great job of filling your available days! However, your listing's Health Score will be low. This is because you are 100% booked for the next 30 days, so the performance will show as "Too High". Usually if your listing's performance is "Too High" we'd recommend increasing your Base Price, but in this case it is likely you will want to keep your Base Price around the same.
- Were most of your recent bookings booked with Last Minute Discounts active? You Health Score may look good, but it might be time to adjust your Base Price.
For example, if almost all your bookings are happening within a week of stay, there are often last minute discounts applied to your listing. Although at Beyond Pricing we recommend shorter booking lead times than you may be used to, it might be time to lower your Base Price to capture more bookings without discounts applied.
If you don't yet have any bookings yet, don't fret. As bookings come in, your Health Score will increase, and you'll be able to use your Health Score to help you determine if your booking pace is on track. Your Health Score does not affect our recommended prices and is merely a guideline to help you decide what to do with your Base Price. As a new host, we recommend a slightly lower nightly rate than what you planned to charge until you've received a couple of bookings and 5 star reviews.