Leveraging Dynamic Pricing

More profits and more bookings

Thats the goal of dynamic pricing.  Airbnb's dynamic pricing system "smart pricing" seems to rarely fulfill that promise.  More often leading to guests getting discounted stays and not contributing to your occupancy.  Pricelab's tools actually seem to fill the promise.

What is Dynamic Pricing?

Have you ever gone to purchase an airline ticket the day after you checked the price only to curse your luck because the price had increased?  Well, that wasn't bad luck, that was dynamic pricing. Dynamic pricing is the adjustment of prices & minimum stays based on demand and other rule sets (like how close an event is to happening).  

Pricelab creators leveraged their experience in other industries to create a dynamic pricing tool for short term rental hosts.  One that doesn't suck.  

Why bother?

One Customer's Tale

Well after talking with a property manager with a large number of homes in a college town it became very apparent why integrations with Pricelabs was of paramount importance.  

In his normally quiet town during the week everything proceeds normally with business professionals, professors, and parents coming to stay.  On the weekends however this sleepy town can become a major destination.  The thing that determines if this flip is switched comes down to one question.  Is there a home game? 

If the answer is yes, then demand spikes and bookings come flooding in.  Now if this property manager had static pricing, he would be charging this weekend crowd a tiny sliver of what they would pay.  Luckily with dynamic pricing he is able to fill his properties during the week (normally in the low hundred range) and maximize his income during home game weekends. Often receiving nightly rates 10+ times more (over a thousand).   

Boosting Ranking

Although hard to verify it appears that Airbnb and likely other OTA such as VRBO reward hosts who update their listing regularly.  Like updating all of your prices and minimum stays every single day.  The reward that they offer?  Your listing gets a higher ranking of customer searches (basically SEO boosting). 

Less Bookings = More Money $$$

Wait what? Well yes this is another advantage of dynamic pricing.  One that isn't clued in by the name.  Tools like Pricelab help to encourage longer bookings so that you end up with higher occupancy and fewer turnovers.  (This is actually my favorite part.)  With more stays of longer length and fewer turnovers that means increased profitability, less headaches and more freedom. 

What's the Catch

Pricelab starts out at $19.99 for your first listing and goes down from their.  They have a free trial so why not give it a try.  Integration with Bookly come soon (May 2024)

Have a great week!
Gabriel Broomfield
Bookly's Founder

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