“Come on down! You’re the next contestant on the Price is Right!”
Now in its 45th season, the American game show has been a mid-morning staple since Baby Boomers hit adulthood. Why has the show stayed so popular over time? It’s simple really. Everybody loves a good deal.
What’s the lesson for vacation rental property management companies?
If you want to stick around as long as “The Price is Right”, you have to make sure that your price is right!
Revenue Management Software Then and Now
Vacation rental property managers have always practiced a form of revenue management. Perhaps the most common type is pricing according to season. For instance, in some areas, it has always been a given that summer rates are going to rise, while winter rates will fall. Here’s a current example of this form of revenue management taken from a popular meta search engine:
“The Carolina’s are a must for a beach-filled spring break this year. Prices surge a whopping 55 percent in the Outer Banks and 46 percent in Myrtle Beach during the summer. Avoid the price hike and brave the cool waters by visiting in May!”
But to really take advantage of dynamic pricing for your vacation rental properties today, you need to embrace the right technology. Unlike a laborious manual change of rates across multiple listing sites on a seasonal basis, modern revenue management is truly dynamic and largely automated.
How Modern Revenue Management Works
Unlike the old manual process of doing hours of market research, revenue management (also known as yield management) software captures real-time analytics. Instead of poring over spreadsheets, a simple click or two provides the insights you need to price your rentals competitively.
With Kigo revenue management, you can set pre-determined parameters based on your break-even points. Then, the software can automatically adjust your price points up or down depending on an analysis of current market conditions, your existing inventory, and your pre-set parameters.
Check out this video about revenue management software:
What’s the result?
Your prices are always competitive, without the need for you to manually change prices with every market fluctuation. Your profits are optimized, and your rentals are more apt to be booked no matter what the season.
Better yet, Kigo revenue manager works across all your listing partner platforms as well. This means that your pricing stays fresh and current no matter where your guests choose to book your properties.
Kigo Says “Come on Down!”
Optimize your prices for maximum bookings by leveraging revenue management for your company. Leave the heavy lifting to Kigo and reduce your stress!
To learn more about dynamic pricing, download the ebook: The Kigo Guide to Revenue Management today.
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