TurnKey Technology Spotlight: Dynamic Pricing Increases Homeowner Revenue
Without Robust Revenue Management, Homeowners Are Leaving Money on the Table
Dynamic pricing is a major driver in maximizing occupancy levels. When your vacation rental is more fully booked, you earn more revenue. More bookings can be secured by capitalizing on last-minute bookings by lowering the rates. You also have to be aware of every peak event in order to maximize the rate you charge. However, few property management companies or owners are able to provide the level of revenue management that TurnKey provides to its homeowners. This edition of Turnkey Technology Spotlight dives into how we leverage algorithms and high-level statistical analysis to provide revenue management to maximize our homeowner’s revenue.
In order to maximize revenue, dynamic pricing has to be part of your property management strategy if you want to avoid leaving money on the table. The reason is simple: dynamic pricing results in 15% of revenue versus static pricing. In extreme cases, we have seen an increase of 35% when a homeowner switches to a dynamic pricing strategy. Altering the price up to 5 times per week is time-consuming and difficult to manage. It isn’t enough to only look at the data like third party dynamic pricing tools do; it takes a human element to differentiate one property from the next and see the entire picture of the market’s demand.
Along with our highly trained staff and extensive local knowledge, we devised a state-of-the-art system to monitor the rental rates, each individual market, and comparable competitor’s prices. Our pricing system optimizes rates received from peak dates and maximizes occupancy in slow seasons in order to increase revenue. We use custom computer programs to monitor traffic to alert us when a property is being viewed but isn’t booking. In that case, the rate might be too high. If a property is booking well in advance, they might be an indication that the property is priced too low because lower-priced rentals are booked first by price-sensitive guests. Our tools give us the opportunity to anticipate those changes and adjust the prices.
Our revenue management team uses technology, market knowledge, and deep statistical understanding to maximize revenue year-round. Having a human element is crucial to TurnKey’s success with revenue management. True dynamic pricing requires a high level of analysis of trends and rates to make the best decision for each rental.
Our General Managers communicate with our revenue management team and share their intimate local knowledge of their local market. This on-the-ground intelligence works with our sophisticated technology and advanced revenue management team to further dial in the rates to increase revenue.
The Benefits to Owners
Dynamic pricing works! Our revenue management tools and team generate 15% more revenue across all markets. Our unique strategy of custom computer programs, advanced algorithms, highly qualified revenue management team, and local knowledge maximizes revenue for all our homeowners.