Using Neighborhood Data to Inform your Pricing Strategy

Usman Imtiaz - Operations Manager

Manage My STR・Aug 4, 2022

Having the right pricing strategy is one of the key components to utilizing your property to its maximum potential. However, a lot of consideration and planning goes into optimizing your pricing. You need to analyze the important vacation rental KPIs in-depth to make sure that you are adopting an appropriate pricing strategy.

 

Your property’s location

  • Find out if your property has unique features, such as tourist attractions, theme parks, festivals, events, natural attractions, etc.
  • If these features drive demand throughout the year, you should be able to set your prices at their maximum during peak season.
  • Change your pricing as the season changes.

Your Property Types and Amenities

  • Your property deserves to be priced higher if you go above and beyond the basic amenities for your guests.
  • Another major factor that influences your property’s pricing is your property type, as you move higher on the extravagance meter, your property moves to the higher end on the pricing.

Your target guest

  • Understand the type of guest you want to attract and price accordingly.
  • Tailor the experience to each guest based on their specific preferences.
  • If you offer luxury accommodation, you will price it to the maximum rate, affordable only to people with deep pockets.
  • Business travelers or students might not be looking for exclusive, luxury amenities.

Your expense

  • Make sure your profit outweighs your expenses.

Service fees

  • These are the fees that are paid to a property manager to cover the costs for the management services they provide such as guest communication, booking management, maintenance, etc.

Restocking supplies

  • You will have to constantly restock supplies like food supplies, toiletries, bed accessories, etc.

Maintaining amenities

  • You will have to maintain the quality of these amenities to make sure that the guest experience is always at its peak.

Your Business Goals and Objectives

  • A properly chartered business plan with clear goals and objectives can help your short-term and long-term growth.
  • In line with your revenue goals, you need to continuously monitor and adapt your pricing strategy.
  • Portfolio Analytics is a real-time reporting system that provides high-level metrics.

Understand the market

  • Understand how people in your locality are pricing their properties.
  • PriceLabs’ dynamic pricing solutions provide pricing recommendations based on historical and current booking data, market supply and demand, seasonal and day-of-week trends, special events and holiday predictions, and days left to book.

Location

  • Shows detailed information of all the listings in your neighborhood for the next 60 days.

Compare competitor calendar

  • You can compare the calendars of your competitors (up to 10) with this feature.
  • Select the listings that you want to compare, and click on ” Get Calendar” to see your competitor’s rates.
  • Hotel data shows your prices compared to the closest hotels in your area.

What is a percentile?

  • A percentile is a term that describes how one score compares to the other scores from the same set.
  • There are four percentiles: 25th, 50th, 75th, and 90th.
  • With this data, you can analyze how your pricing compares with the pricing of the other listings in your competitive set.

How to Access the Bedroom Filter

  • At the top right of the Neighborhood data tab, you can find the bedroom filter.
  • Click to add or remove listings with the number of bedrooms you’re interested in, or click ‘Select All’ to see the full group of listings we’ve assigned as your PriceLabs neighborhood.

What is the current price?

  • It is the price that our algorithm saw for your listing on your *** channel, or channel manager.
  • Updated any time a sync or save & refresh is done.
  • If the listing you are analyzing has been syncing for a day, we usually showcase yesterday’s rates.

Color chart for the future charts

  • Future prices chart shows your current occupancy and the recommended prices along with the percentile range of daily rates for the next year.
  • The future occupancy chart shows the average occupancy in your area for each date for the upcoming year, along with any existing blocked dates.
  • You can also download this data as CSV (excel format) and analyze them independently.

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