What is Dynamic Pricing? (VIDEO)
At its core, dynamic pricing is the practice of changing your price based on changes in supply and demand.
As a concept, dynamic pricing is not new. If you've ever booked a flight you're well aware that prices for the same route and airline differ significantly between departure days. You've likely also noticed that the prices you see today for a given flight may not be the same when you check again tomorrow.
Airlines and hotels have been doing it for decades and we are here to help you apply the same concept to your vacation rental!
Check out this video for an overview, or read on for more information!
The challenge with Vacation Rentals
With an airline or a hotel, you have large blocks of the exact same inventory. For example, on any given flight you may have Economy and Business Class. That's two groups of inventory. There's obviously window, aisle, and middle seats, but in terms of the way they're priced and sold, there's no difference.
With a hotel, you will typically have a few more categories (e.g. deluxe rooms, deluxe rooms with a view, executive rooms, and suites), but there are still large blocks of identical inventory.
Vacation Rentals, however, are different because every single piece of inventory is unique. You have to keep in mind such factors as:
- Size of the space
- Proximity to points of interest (e.g. tourist attractions and the beach)
- Picture quality
- Number of bathrooms
- Quality of furniture
- Was the space recently renovated?
- The view & natural light
- Air conditioning
- Business traveler amenities
- Family amenities
- Are pets allowed?
- And the list goes on and on...
This is why you can't price all one bedrooms the same as you would all deluxe rooms in a hotel. This is where Beyond Pricing comes in.
As the world's first dynamic pricing solution for the vacation rental industry, Beyond Pricing has found a way to adjust for all of this!