The Importance of Dynamic Pricing

What Is Dynamic Pricing? 

Dynamic pricing has emerged as a variation for fixed pricing and is taking precedence over fixed pricing in some industries. Hospitality, travel, public transport and retail are among the industries which have realised the importance of dynamic pricing to set flexible rates for their products and services.

With dynamic pricing, one can calculate the optimal price for their. It is an automated process that changes the price based on supply and demand. However, in order to calculate pricing, dynamic pricing applies a more advanced analysis of data rather than just taking into consideration supply and demand. Adjusting the prices according to the competitors’ is one way to determine optimal pricing. It can also be altered by the rate of a website’s viewers who have been successfully converted into buyers. If this rate is low, the decrease in the price is an alternative dynamic pricing method.

Nowadays e-commerce is the biggest fan of dynamic pricing. Apart from large companies like Airlines and Amazon, vacation rental owners are also aware of the importance of dynamic pricing to find the highest possible price that does not deter potential consumers.  

Strategies of Dynamic Pricing

Dynamic pricing might apply one of the following strategies: 

  • Price can differ based on locality and geography, meaning that the supply and demand for different items are different in different places. 
  • Price can differ based on time. Different items can be discounted on special occasions on the calendars of different nations and cultures.
  • Competitors’ pricing is useful to check if the price you set is too low or too high.
  • Prices can be adapted due to the peak of demand and the inability to supply. 
  • Pricing differs due to different behaviors shown by customers. For example, provided that the customers visit the site after filling a survey or it is the third time they visit the website in a day, the price can be discounted.  

Why is Dynamic Pricing Important in the Vacation Rental Business?

As a vacation rental owner, you need to set competitive pricing. 

Knowing the nightly price of similar properties helps compare your prices with those of your competitors’. Searching and tracking the ever-changing nightly prices set by your competitors is very demanding if not impossible. In addition, prices vary constantly with the anticipation of special events and different holidays. If you need the knowledge of the competitors’ pricing, the trends and the implications of special events and occasions, then a dynamic pricing tool would be more than helpful to you. 

 As a vacation rental owner, you need to change your rates regularly.

You might have noticed fluctuations in the rates of accommodation of various kinds both as a guest and a vacation rental owner. This is because of holidays and special events taking place on the calendar. As a vacation rental owner, you need to set different rates for your property for different occasions. Obviously, you do not sell your vacancies with the same price on different occasions. Instead of fixing your eyes tirelessly on the calendar, you just need to apply a dynamic pricing tool. It can watch out for the changes and do the job for you.   

You need an accurate minimum night stay algorithm.

In order to maximize your occupancy, you need to set exceptions for the minimum night stay rules. You can fill the vacancies in the availability calendar. Vacation rental owners do it manually whenever they expect the vacancy of their property between two bookings unless the cleaning and maintenance fees become too high. Dynamic pricing helps automate minimum night stay rules to maximize your profits. 

Zeevou and Dynamic Pricing!

Dynamic pricing tools help you tailor your revenue by maximizing the occupancy of your properties and recommending the best price per night. Zeevou has the privilege of integrating with Beyond Pricing and PriceLabs. These two data-driven pricing algorithms increase your revenue and vacation rentals occupancy all through automation.   

If these integrations look interesting to you, please follow our next two blog posts or contact Zeevou Partner Success Team now.               

Remotely Controlling Number of Guests Staying

Remotely Controlling Number of Guests – Three Steps

Remotely controlling the number of guests staying is not the easiest of tasks. We’ve all heard of cases of guests who book for a handful and then show up with a whole bunch of other guests. If you run an annexe to your house as an Airbnb, there’s obvious ways of ensuring that this doesn’t happen. However, if you are a vacation rental management company remotely administering properties, that’s not the case. Even for more established serviced apartment companies that operate unstaffed aparthotels, it’s not always straightforward how unauthorised access is controlled.

1. Find Out Who Will Be Staying

Ask your guests ahead of time to provide the names of those who will be staying. Make sure to keep a full guest register (in some countries this is even required by legislation). Moreover, tell the guests that they will not be able to get access for anyone other than the names that have already been submitted at the time of booking, unless they agree otherwise later on with yourself. If you don’t want the hassle of record-keeping, take a look at Zeevou Book‘s 5-Step Booking Confirmation Process, which takes care of this for you.

2. Collect Digital Signatures

Once you have the guest register, you want to elicit a further commitment from the guest. Furthermore, get them to sign and say that they will not exceed the list of guests provided. You can, at the same time, ask them to agree to all your other terms and conditions. While it is difficult to do this upon arrival, you can collect digital signatures from the lead guest at the time of booking via a digital signature service. Signable is an affordable option, and is legally binding.

3. Supervise Your Property

If you follow the two steps outlined above, you will have made it clear to the vast majority of guests that you’re not going to accept any nonsense. However, you will find that there are still those who are going to try their luck and pretend that they’re compliant on all your paperwork. Occasionally, they may even commit fraud to do so. Moreover, to ensure that your property is safe, you may wish to install a Ring doorbell. This will allow you to have a live video link with your property at any time, and monitor who’s entering and leaving it.

However, monitoring your CCTV requires an active presence. This is where Noiseaware can come in helpful (use the coupon code “zeevou10” for 10% off). Their noise detection product will alert you if noise in your property exceeds a certain level. Just make sure to have a team of people ready who can stand up to the guests if you get an alert, as it may well be a full-blown party!


Can You Fully Remotely Control the Number of Guests Staying?

Will this help you completely eliminate all issues with guests staying at your property? No. Will it help you in remotely controlling the number of guests staying at your property? Yes. So, following the above steps can help you in reducing the chances of extra guests who have not paid staying, or a rowdy party being thrown and your place getting trashed.