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.               

Airbnb Crash and the Importance of Collecting Guests’ Direct Contact Details

Airbnb website was down last night, 9th January, 2020. According to Downdetector, Airbnb crash incidents is not limited to this single one. The website experienced outages and problems on 5th and 13th December due to maintenance or technical issues, who knows?! No matter what, the consequences of Airbnb site crash can impact both ends of the host-guest spectrum.

Imagine a newlywed couple heading out to their Airbnb cabin to set out their honeymoon journey to be remembered for a lifetime, and all of a sudden all connection with their host is lost, and they wind up wandering around worrying how to check in. Booking confirmation, check-in and check-out instructions, reporting maintenance issues, payments and all related issues will be impacted following Airbnb crash of whatever sort. As a result, as a host you will be left with a swarm of complaints you could easily avoid and use as a competitive advantage or a unique selling point had your guests’ direct contact details, what Airbnb fails to deliver to you.

Airbnb Email Addresses

According to Airbnb, in order to “help build trust, fight scammers and protect your personal information,” they create an anonymised, temporary email addresses for both the host and the guest once a reservation is made. This way Airbnb also makes sure the chances of receiving direct bookings through the host’s website are minimised to the slightest degree. Quite an ingenious scheme to kill two birds with one stone, right?!

But what if you, as a host, could take the initiative and change the rules of the game? This time around, contrary to the past, you can get your hands on your guests’ real contact details whether they make a reservation on Airbnb or on other OTAs and property listing websites. Good news is not only being able to contact your guests during Airbnb or other platform outages, but also possessing a sought-after database of real email addresses to marketing purposes. You wouldn’t want to let hard-earned money slip through your fingers again and again in the form of commissions to Airbnb and the rest of OTAs.

 So, what can be done during Airbnb crash?

Zeevou’s 5-Step Booking Confirmation Process is designed in such a way to ensure GDPR-compliant contact details collection, what each and every one marketers in the industry desperately look for! Guests receive a copy of the booking information, and are invited to make any corrections or additions as necessary. Any forwarding email addresses provided by OTAs or booking agents are hidden, and the guest is asked for their real email address. They are also prompted to provide an estimated time of arrival, and to opt in to GDPR marketing. If the person who has made the booking is not the one who will be staying on site, then the main guest’s details are also requested. Moreover, this step allows you to ask whether it’s a Leisure or Work booking.

You would never leave the fate of your vacation rental or hotel business to luck, or worse in the hands of industry giants like Airbnb! So, why not play by your own rules and join Zeevou, the Direct Booking Revolution, in 2020?

Airbnb Custom URLs

Airbnb Custom URL

Airbnb hosts are starting to be told that they can employ custom URLs as Superhosts. Airbnb enables eligible hosts to take advantage of this opportunity to create an airbnb custom URL for each of their listings. However, the airbnb Superhost can create only one URL per listing and it is valid only so long as their Airbnb account is active. This also means that airbnb can remove it anytime they decide to do it.

Therefore, Airbnb’s long listing URLs that look like anonymous addresses, and do not make any impression on guests, will eventually be replaceable by ones using the airbnb.com/yourlistingname format, unless someone else has already used that particular name. This functionality was supposed to be released in the fall of 2018. As a matter of fact, that never happened, and Airbnb has still not announced an exact date. According to hosts, emails from Airbnb claim that the final release is coming soon and you can use airbnb custom URL.

Setting up your own custom URL Steps

Setting up your own custom URL is relatively easy.  Before starting the process, bear in mind that you are eligible to create only one Airbnb URL per listing. So if you have three listings, you have to make sure you choose three URLs which direct people to each listing you host.

On every listing page, you will find the following items: Amenities, Accessibility features, Title & Description, and Custom Link.

Click on Custom Link and then click on “type your link”, shown in a different color similar to the picture below. Please be aware that you only get to do this once for each listing, so you should make sure to read the terms and conditions of Airbnb Custom URL Policies in detail first.  

Alternatively, you might receive a message on your dashboard stating: Promote Listing by a Custom URL. In this case the message will guide you through the steps. 

Are Airbnb’s Custom URLs of any use?

What are the pros and cons of using Airbnb’s custom URL? Does an Airbnb’s custom URL improve your SEO?

The advocates of Airbnb’s custom URL say that it will help your listings rank higher. It looks much nicer to have a short and memorable link that can be printed on your business card. you can use it to promote your listing and direct more guests to it.

Opponents of Airbnb’s custom URL criticise some of its features.  First of all, the opportunity seems to be unreliable. The existence of this link depends on Airbnb policies; which means it can be suspended if the host loses the Superhost status, or if, for any reason, Airbnb decides to discontinue it. Similar problems have been experienced by entrepreneurs setting up a business through Facebook.  Secondly, the opportunity does not benefit all Airbnb hosts. Getting Airbnb’s custom URL is exclusive to Superhosts on Airbnb. While some plus members of Airbnb already have a custom URL, the others have to wait for the new announcement.

Finally, the custom URL does not affect ranking on search engines.  When someone clicks on a custom URL, they are simply redirected to your Airbnb listing’s main URL. There are many tutorials on setting up a domain name for your Airbnb listing, which claim to give a personalised character to your vacation rental business and you can google to find also how Airbnb URL Shortener works, but at the end of the day these  benefit Airbnb to grow.

And in reality, that’s all it does. The main advantage of using a custom URL seems to be the fact that you get a memorable link that you can share with family, friends, and regular guests. If you are looking for a memorable URL to spread around and help Airbnb strengthen their position in the marketplace and earn more in commissions, this seems to be a great way to go!

However, you may wish to consider setting up your own website to increase direct bookings of your vacation rental business instead. In this way, you will be able to charge your guests more and at the same time offer them a discount, as there’s no middle man that needs a share of the pie!

Increase your Direct Bookings.

A number of channel managers and property management systems for vacation rentals and serviced apartments also offer booking engines. Zeevou is an easy to use online platform that automates hospitality management. One of its aims is to decrease hosts’ dependency on OTAs and listing sites by driving direct bookings. Vacation rental managers setting their website up through Zeevou can use their own domain. The rich SEO tools offered help maximise the chances of showing up on top of search results. Zeevou creates a beautiful, SEO-friendly, modern website which expands visibility and increases the hosts’ profits. If you are interested in knowing more about how Zeevou can help hosts, please click on this link.

How to Collect Guest Email Addresses

Are you wondering how to collect guest email addresses? Why bother? You can message them directly through the app of the site they booked through, right? Not quite. Keep reading.

The Importance of Collecting Guest Email Addresses

Ping – a new booking has come in through Airbnb. We all love that sound. Payment taken care of. Sit back and relax until arrival date. Airbnb sorts it all out for us. How nice. Or maybe not quite? Have you ever wondered why Airbnb conceals as much as possible in way of contact details of your guests? You’re surely aware that all you get sent is a forwarding e-mail address that usually ends in “@guest.airbnb.com”. Booking.com adopts a similar trick.

While this is all done under the guise of safety and preserving anonymity, there’s probably an underlying reason. And that is the power of data. If the booking site keeps your guests’ contact details to themselves, they’re effectively not your guests. The guests will, very likely, just book through the booking site again, even if they are looking to stay at your property as a repeat guest. If you are trying to increase your direct bookings, it is imperative to start thinking about how to collect your guests’ email addresses. Once you decide to do so, the next step will be to try and automate this, so that it does not take up any of your precious time!

How to Build Up your Marketing List

OK, great. we could convince you. You’re going to take a deep breath and have a nice chat with every guest. when you go to check them in with a Meet & Greet. You could ask where they are coming from. Or perhaps, what they’re in town for, and, once you’ve made friends, what their contact details are. Except for – hang on – what if you’re a single bloke and it’s a young lady staying? That might not go down too well. And, what’s more, you actually let people check-in by themselves, so doing a Meet & Greet just for this seems like a lot of extra work…

Well, perhaps it’s best to contact them before arrival, or even at the time of booking, and just ask them for their contact details upright to collect guest email addresses. But how are you going to keep track of it all? Perhaps you could use a spreadsheet and record them there. Alternatively, you could use a Google Form and send the link out in the booking confirmation email. Why not be even smarter and sign up for a free Hubspot account so you can arrange things even more neatly in there? That way you’ll be able to easily follow up with your customers in the future. But, hang on, that makes it the third form that your guests have to fill in! Plus, Hubspot won’t tell you where or when they stayed, or how much they paid, or whether they’ll be coming back again!

Automating the Collection of Guest Email Addresses

So, is there a neat solution? The answer is, it depends on whether your channel manager or PMS can handle this for you. For example, Zeevou Book‘s unique 5-Step Booking Confirmation Process fully automates the collection of guests’ email addresses. Zeevou identifies hidden email addresses of guests in OTAs websites. While it uses the forwarding address to send the guest an initial email, the forwarding address is hidden from the guest when they are shown the details that you hold for them. There is an obligation in Zeevou for guests to provide you with their real e-mail address. It helps you to update your record. To help ensure compliance with GDPR requirements, Zeevou also enables you to collect consent for future marketing from guests, allowing them to unsubscribe from any marketing emails sent through Zeevou.

To find out more about Zeevou’s features, you can request a Free Demo by clicking here.