1.
Free Money
Real Examples of How Dynamic Pricing Drove Higher Rates
and Occupancy

2.
Panel
• Ian McHenry, CEO of Beyond Pricing
• Dennis Goedheid, CEO, Casiola (Orlando)
• Dru Brown, Director of Sales and Marketing, The Vacation Company
(Hilton Head
• Aaron Linfoot, VP of Business Operations, Meredith Lodging (Oregon
Coast)

3.
Learning Objectives
• Learn how to identify when you might be able to drive greater occupancy
through lower prices
• Learn when you can push prices even higher and what the key signs of
being underpriced are
• Become familiar with different strategies and tools for automatically
capturing these revenue opportunities

4.
Panel
• Ian McHenry, CEO of Beyond Pricing
• Dennis Goedheid, CEO, Casiola (Orlando)
• Dru Brown, Director of Sales and Marketing, The Vacation Company
(Hilton Head
• Aaron Linfoot, VP of Business Operations, Meredith Lodging (Oregon
Coast)

5.
What is Dynamic Pricing?
• Dynamic pricing is pricing based on changes in supply and demand
• As demand changes, so should your prices
• Ways people dynamically price:
• Manually – increasing or decreasing rates because you see changes in the market
or your competitors
• Using occupancy or time-based rules to adjust prices
• Using an automated, data-driven revenue management software

6.
Demand is Different Every Single Day
Las Vegas

7.
Demand is Different Every Single Day
Waikiki

8.
Demand is Different Every Single Day
Lake Tahoe

9.
Demand is Different Every Single Day
Outer Banks

10.
Demand is Different Every Single Day
Hilton Head

11.
Demand is Different Every Single Day
Orlando

12.
Demand is Different Every Single Day
Oregon Coast

13.
Demand Differs Even within a Single Market
Lake Tahoe – Mountain (Kirkwood)

14.
Demand Differs Even within a Single Market
Lake Tahoe – Lake (Tahoe City)

15.
Demand Differs Even within a Single Market
Bend, Oregon

16.
Demand Differs Even within a Single Market
Sunriver, Oregon

17.
If Demand is Different Every Day, Why Aren’t
Prices?
Example Waikiki 1 BD

18.
If Demand is Different Every Day, Why Aren’t
Prices?
50%
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Unit Price Occupancy

19.
$80
$100
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Unit Price
If Demand is Different Every Day, Why Aren’t
Prices? Honolulu Marathon

20.
Hilton Head
If Demand is Different Every Day, Why Aren’t
Prices?

21.
Hilton Head
If Demand is Different Every Day, Why Aren’t
Prices?

22.
Two Simple Ways to Make Free Money
1) Raise prices during peak periods (and micro-periods) to drive higher
ADR
2) Lower prices during low and shoulder periods (or days of week) to
drive higher occupancy

23.
Raising Rates for Micro-Periods
• Example: Thanksgiving in Hilton Head
• Results:
• 2017 – 363 bookings, $214,478 in revenue
• 2018 – 364 bookings, $318,706 in revenue – with more coming in every day!
• Free money: $114,000+

24.
Raising Rates for Micro-Periods
• Example: Columbus Day & Fall Break in Hilton Head
• Results:
• 2017 – (2 weeks) – 459 bookings, $398,282 in revenue
• 2018 – (2 weeks) – 534 bookings, $489, 462 in revenue
• Free money: $89,000+

25.
Raising Rates for Micro-Periods
• Example: Columbus Day & Fall Break in Hilton Head

26.
Raising Rates for Micro-Periods
• Example: Christmas and New Year’s in Orlando (full year avg ADR = $160)
• Results:
• 2017 – $267 ADR
• 2018 – $354 ADR
• Free money: $87/night increase in ADR for the week = > $100,000 across 180
properties

27.
Raising Rates for Micro-Periods
• Example: Christmas and New Year’s in Orlando

28.
Raising Rates for Peak Season
• Example: August on the Oregon Coast
• Results:
• Example listing: Wave Crest
• Revenue in August:
• 2017 - $6,150
• 2018 - $11,532
• Increased ADR for first half of August and
drove occupancy in second half

29.
Raising Rates for Peak Season
• Example: August on the Oregon Coast

30.
Increasing occupancy in shoulder season
• Example: May on the Oregon Coast
• Results:
• Example listing: Wave Crest
• 2017:
• Revenue - $2,730
• Occupancy - 26%
• ADR - $341
• 2018:
• Revenue - $5,702
• Occupancy - 67%
• ADR - $271

31.
Increasing occupancy in shoulder season
• Example: May on the Oregon Coast

32.
Q&A
• Ian McHenry, CEO of Beyond Pricing
• Dennis Goedheid, CEO, Casiola (Orlando)
• Dru Brown, Director of Sales and Marketing, The Vacation Company
(Hilton Head
• Aaron Linfoot, VP of Business Operations, Meredith Lodging (Oregon
Coast)

33.
Slides
• Twitter: @beyondpricing
• Email: ian@beyondpricing.com