In the world of vacation rentals, increasing bookings and profits are the primary goals for hosts and property managers. However, when faced with a downturn in bookings— a common challenge in most markets—it's critical to adopt innovative, modern strategies.
An unconventional, but proven, strategy that boosts occupancy and revenue is increasing a guest’s length of stay. While enticing guests to extend their stays might seem like an uphill battle, the solution requires a simple, but innovative, shift in your revenue management strategy: Search Powered Pricing.
First, What Is Search Powered Pricing For Vacation Rentals?
Have you ever wondered if it’s possible to accurately predict vacation rental booking trends before a guest actually makes that booking? For example, let’s say that a major concert is announced in your area. You have the perfect opportunity to optimize your pricing strategy, but you need to attract bookings while maximizing revenue as demand surges.
Enter Search Powered Pricing (SPP) - a game-changer in the vacation rental industry. By tapping into guest search data, SPP identifies trends in demand across different dates and locations. The goal? To seize higher average daily rates (ADRs) when demand peaks and to bolster occupancy during lulls by adjusting prices dynamically – all while still driving revenue.
Property managers and hosts stand to gain invaluable insights into consumer behavior, demand fluctuations, and market trends through real-time data analysis. Armed with this information, they can make informed decisions, automatically tweaking pricing in response to shifting consumer preferences. This means that pricing is optimized to cater to the evolving needs and desires of potential guests.
With SPP, property managers can strategically align prices with consumer demand and market dynamics. This encourages guests to extend their stay.
Better Pricing + Extending Stays = 3%+ Increase in RevPAN.
Imagine again that concert happening in your market, packing hotels and vacation rentals with eager guests. Thanks to Search Powered Pricing (SPP), your rental automatically raises prices during these high-demand dates, ensuring you make the most of the excitement. But here's the twist: SPP also knows when demand dips, so it lowers prices before and after the event, keeping your place competitive even during quieter times.
By aligning prices with what visitors are looking for and market trends, it actually encourages them to stick around longer. When big events hit, demand skyrockets and prices follow suit. But SPP knows that offering lower prices during quieter times makes your place more appealing, tempting visitors to extend their stay and boosting your overall earnings. It's a win-win situation: guests get a great deal, and you get more bookings and happier guests.
Property managers using Search Powered Pricing (SPP) from Beyond notice that their bookings influenced by SPP tend to have stays that are 11.6% longer compared to those who don't use SPP. And these higher rates and longer stays all add up to more revenue: SPP users usually see a +3% increase in RevPAN.
As an example, one Beyond client using SPP in Hawaii has seen their average length of stay increase to 8 nights, compared to 7 without!
Stay Ahead of the Competition With Advanced Revenue Management Strategies
In a competitive short-term rental landscape, Search Powered Pricing lets property managers and hosts effectively automate real-time data into their revenue management strategies to stay ahead of the competition.
Beyond's enhanced solution incorporates consumer search data into its pricing algorithm, enabling rates to automatically increase or decrease based on true demand for each night. This dynamic adjustment is key to capturing the most bookings. With Beyond, you will:
- Avoid sacrificial units as Beyond's algorithm adeptly captures spikes in consumer demand in real-time, adjusting prices accordingly.
- React quickly to market events and provide owners with proactive insights into price adjustments, effectively managing their expectations.
- Avoid low bookings resulting from overpricing during periods of low demand for specific dates or days of the week.
Real-time search data also unlocks key information for your business, such as how many visitors convert to paid guests, where guests are searching from, what they are searching for, and when they are searching. In this way, property managers can make data-driven decisions and design guest-centric strategies to grow their business.
Ready to get started with Search Powered Pricing? Let’s chat!
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