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Preparing Your Vacation Rental Company for Dynamic Pricing

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Preparing Your Vacation Rental Company for Dynamic Pricing

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We talk about how to prepare owners, reservationists, your channel manager, your PMS, your website, and everyone else in your organization for the changes that occur when you switch to modern, data-driven dynamic pricing and revenue management for your vacation rental company

We talk about how to prepare owners, reservationists, your channel manager, your PMS, your website, and everyone else in your organization for the changes that occur when you switch to modern, data-driven dynamic pricing and revenue management for your vacation rental company

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Preparing Your Vacation Rental Company for Dynamic Pricing

  1. 1. Preparing Your Company for Dynamic Pricing Ian McHenry, CEO, Beyond Pricing Dru Brown, Director of Sales and Marketing, The Vacation Company Ned Lucks, CTO, Bluetent
  2. 2. Learning Objectives • Learn how to retrain your staff to handle guests not used to changing prices • Understand how dynamic pricing affects the different vendors and software you use • Plan how to communicate dynamic pricing to your owners
  3. 3. Panel • Ian McHenry, CEO, Beyond Pricing • Dru Brown, Director of Sales and Marketing, The Vacation Company • Ned Lucks, CTO, Bluetent
  4. 4. Preparing Your Company for Dynamic Pricing • Going from setting rates once per year with a handful of seasons to having rates that change every single day has a lot of implications for all levels of your organization. • We'll show you the 5 things you need to do now to make sure you're setup to take advantage of dynamic pricing.
  5. 5. What Is Dynamic Pricing? • Dynamic pricing is pricing based on changes in supply and demand • 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. 6. 5 Things to Do to Get Ready • 1) Retrain Your Reservations Staff • 2) Get Your Website Ready • 3) Make Sure Your PMS and Channel Manager Can Handle Dynamic Rates • 4) Get Your Owners Onboard • 5) Ease Into It
  7. 7. Retraining Your Reservations Staff • Old Way: • PDF quotes that are good forever • Rate tables for outside agents that change once per year • New Way: • Rates are no longer good forever (max 24 hours) • Use changing rates to encourage guests to book now and drive conversion
  8. 8. Retraining Your Reservations Staff • How to deal with: • Repeat guests • Guests who try to book a few weeks later and price has changed • Travel agents who used to just use your annual rate table
  9. 9. Getting Your Website Ready • Old Way: • Static rate table with seasonal rates • New Way: • Live quoting from your PMS • New ways of displaying your rates
  10. 10. Getting Your Website Ready Old Way: Static Rate Table
  11. 11. Getting Your Website Ready New Way: Rate Table w/ Seasonal Ranges
  12. 12. Getting Your Website Ready New Way: Rates on Calendar View
  13. 13. Getting Your Website Ready New Way: Live Quote
  14. 14. Can Your PMS & Channel Manager Handle It? • Old Way • PMS & channel manager produce a seasons-based rate feed • New Way • PMS & channel manager translate rates into a daily rate feed (with or without length-of-stay variations) • Live quoting
  15. 15. Can Your PMS & Channel Manager Handle It? • Common Issues: • PMS doesn’t produce an accurate rate feed that translates dynamic rates into a price-per-day • PMS produces two feeds (one season-based and one with a different price per day) and channel manager doesn’t pull from the right one • Rate adjustment rules only work with live quoting • 365 rates changing everyday is too much of a load on their servers
  16. 16. Get Your Owners Onboard • Old Way • Every year you agree on rates with owners and maybe a max % you can discount (often laid out in the actual owner contract) • New Way • Owners allow property managers to use their expertise to set rates
  17. 17. Get Your Owners Onboard • Common Issues • Picky owners wanting to dictate all pricing • Owners worried that their prices are different than their neighbors’ • Contracts don’t allow for dynamic pricing
  18. 18. Ease Into It • Set some boundaries (minimums and maximums) • Start with your most progressive owners • Use data to see where you stand relative to the market • Get excited!
  19. 19. Q&A
  20. 20. Evaluation We’d love to hear your feedback on this session! Please “rate this session” by selecting this session in the VRMA National Conference Mobile App.
  21. 21. Still Have Questions? Ian McHenry, Beyond Pricing: ian@beyondpricing.com Dru Brown, The Vacation Company: dru@vacationcompany.com Ned Lucks, Bluetent: ned@bluetent.com

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