If you’ve booked a flight for Thanksgiving or Christmas, tried to call a rideshare service after a concert or sporting event, or waited until the end-of-season discounts to make a big purchase, you are familiar with dynamic pricing and revenue management.
Dynamic pricing refers to the process of continuously adjusting prices based on changes in supply and demand. Other factors include availability, inventory, seasonality, and time of purchase. For example, weekend rates will be higher than weekday rates, and peak times, such as holidays, special events, and high season, will be priced at higher rates than shoulder or off-season times. Prices are reduced to entice last-minute guests if a property is not booked.
Here are 4 ways homeowners and property managers set pricing:
TurnKey’s Revenue Management team uses technology, market knowledge, and deep statistical understanding to maximize revenue year-round. Our team finds opportunities to improve pricing and identify potential problems with pricing well in advance – with time to implement a change and make a difference before it is too late to maximize revenue.
In this edition of “Get to Know TurnKey,” we’re highlighting the value this team provides to our homeowners and guests, especially since their work is largely behind-the-scenes.
Day to day duties
A revenue manager’s job is to make sure each unit is priced to maximize revenue for our homeowners. That straightforward mission can be very difficult to achieve without the right team, skillset, tools, and technology. Since demand is not stable home to home or market to market, a revenue analyst’s job is never ending. TurnKey’s team makes forecasts using historical performance while anticipating differences in upcoming seasons to make sure the price is set correctly.
The job encompasses a wide range of duties to set rates, identify low-performing homes, and ensure that every home is making as much revenue as possible. Our revenue analysts:
Benefits to homeowners
Our revenue managers provide an invaluable service to our homeowners that would be extremely difficult for them to replicate on their own.
Here’s what our homeowners say:
“We have seen an increase in revenue year after year.”
Tara D., Homeowner in Austin
“[TurnKey is] very good at keeping our units occupied. “
Greg and Katie, Homeowners in Park City
Here’s what our team says:
“She (Duygu) works to make sure that each unique request from a homeowner is met. She offers up suggestions to better serve any request and is always thinking one step ahead. She is a joy to work with, and I know that each communication I have with her will be thorough and accurate- not to mention forward thinking. “
Account Manager in Austin
“She (Lisa) works so well with the [Nashville] GM and AM to ensure rates are consistently updated according to the market. She is a great asset to the revenue team and works hard to make sure our HOs receive rental revenue. She looks for areas of improvement before there is an issue with bookings.
Account Manager in Nashville
“With the level of service we provide, we have to generate more revenue because our commission is low. Since revenue is critical, we have one of the largest and most qualified pricing teams in the travel industry.”
TurnKey Vacation Rentals, Executive Chairman
What does TurnKey look for in a candidate?
The revenue management team employs people with backgrounds in economics, math, and finance who have a deep understanding of dynamic pricing. The ideal team member is extremely detail-oriented and an independent self-starter. An analyst should be able to spot trends to proactively prevent a home from experiencing less revenue and communicate complex pricing strategies in a way people can understand.
Other skills required include:
Do you know someone who exemplifies the above qualifications?
Visit the TurnKey Careers page!