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⋅ Understanding market demand curves
⋅ Understand the pros and cons of different
⋅ How to improve your pricing for 2019
What is Dynamic Pricing?
Changing your price based on
changes in supply and demand
Some Quick Clarification
⋅ What is revenue management?
⋅ Selling to the right person at the right time for the right price
⋅ But also an include:
⋅ Dynamic pricing
⋅ Cancellation fee policies
⋅ Length of stay adjustments
⋅ Channel management
⋅ Today we are going to focus on the first part of revenue management: pricing
What factors do you currently use to adjust prices?
Pelican Jack’s 5 bdrm deep dive
Pelican Jack’s 5 Bedroom in the Panhandle
1. Look at historical performance during high & low seasons
a. Highlights + lowlights
2. Impact on revenue
3. Competitive overview
High Season in review
When you do this, you can quickly see that this unit was 100% occupied
from May’18 until Aug’18 at an ADR of $932.
Takeaway: increase price for summer period
Low Season in review
You can also see that shoulder season (Oct-Dec) occupancy was stronger in
2018 than 2017.
Takeaway: lowering rates during Nov & Dec lead to increased occupancy...
a 24% rate decrease YoYa 67% increase in occupancy YoY
… and increased revenue!
This property made $4,800 Dec’18 vs. $3,493 Dec ‘17
a 37% increase in revenue YoY in one month
Push rates higher in the summertime where it sells out
Bring rates a bit lower in the low season to drive more occupancy
Lower in low season
Push higher in high season
Don’t miss events!
Once you have these actionable insights, we now need to put a
implementation plan in place
⋅ Project owner
⋅ Time needed to input seasons & rates for (x hours)
⋅ Do owners need to review?
⋅ Will this change anything on distribution?
⋅ Go-live date
⋅ Review after 2 weeks once you have booking data and compare
booking pace YoY
⋅ 2018 in review - look at the account & listing level
⋅ ADR $
⋅ Occupancy %
⋅ Revenue by stay date & revenue by booking date
⋅ How to stay competitive
⋅ Push rates higher when demand is high
⋅ Bring rates a bit lower in the low season to drive more occupancy
⋅ Put an implementation plan in place
Things we didn’t cover today
⋅ Last minute discounting strategies
⋅ Gap filling
⋅ Minimum night stay rules
Connecting your PMS
listing-level performance dashboards
portfolio-wide performance dashboards
free market data & comp shopping tool
Not an excel junkie? we may be able to help
Let’s get in touch!
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