Airbnb, booking.com and other sites have increased in popularity.
What to charge is a complex issue facing many landlords today. The increased supply of serviced apartments gives guests more choice. Some landlords see this as a threat and lower prices to get more bookings.
Whilst this strategy may work it’s not very smart. You are leaving money on the table if you lower prices. You need a better understanding of the local marketplace.You are leaving money on the table if you lower prices. You need a better understanding of the local marketplace. Click To Tweet
Our pricing engine is different
Property Keeper uses multiple pricing algorithms to calculate nightly rates. Our data is backtested and this enables us to tweak our machine learning models.
In addition, we adjust rates based on local community events, conferences, expos, festivals, observances and public holidays.
We feed all this information into booking brain, our dynamic pricing engine.
Lets look at the following scenario that would effect booking brain
Northampton – event in the town
IBIS hotel took a booking of 80 guests and raised their prices on the last 10 rooms. Road mender had a big music event called innovation, it was cancelled. Do we increase prices?
Booking brain raised prices on booking.com because IBIS was close to capacity.
Further price increases were applied a few days later to airbnb and homeaway because of the innovation event.
2 weeks before the event booked competing properties were coming back as vacant on homeaway and airbnb.
Scrapes from Northamptons local event facebook groups, instagram and twitter picked up negative keywords.
As the supporting data stacks up eventually the threshold is crossed to flag an SCE (Significant Cancellation Event). Booking brain now knows innovation is cancelled.
Other landlords on Airbnb and homeaway have all pushed up prices because of innovation but booking brain actually lowered prices to stay ahead of the other now over priced properties.
It’s also more complicated than that.
IBIS isn’t on airbnb so our booking.com strategy needs to exert more bias.
How have we won?
By only slightly raising prices to respect the 40 guest booking at IBIS.
Booking brain knows in real time what to charge on airbnb and other booking sites.
Scenarios like this take place all the time.
Call us today on 01604 589 939
*Property Keeper Management LTD is an independent management service for Airbnb hosts and is not affiliated with Airbnb.