Do you lie awake at night worrying about the price you have set for your property?
Is it too high..is it too low..or is it just right Goldilocks.
Or like the Curates Egg, is it good in parts?
Well, we all have these same worries. But don’t forget you can change your pricing! Just because you set your pricing once, doesn’t mean it is set in stone.
In fact it shouldn’t be set in stone.
We call this Dynamic Pricing.
We have data that shows its possible to earn 40% more by changing your prices to fit demand.
Just think about this for a minute. The price of petrol goes up and down based on demand and supply. It’s always cheaper mid-week and the price goes up on weekends on holidays. Same for hotel rooms. Is the room rate the same for New Year’s Eve as for a mid-week in May? Of Course not.
Ever had that sinking feeling when you get a booking for 6 months in the future, accept the booking then realise there is a Music Festival in town. By the week before the festival you would have had been able to sell the property at double the rate. Someone just got a cheap deal!
Well folks, we are in the hotel business. And we need to run our businesses like a Mini-Hilton. Try booking a hotel room. The room rate is different for every day of the year!
Prices go up in busy times and we drop them in slow times. It all about maximising revenue from our Occupancy Rate.
At Host Partners we use a number of techniques to set our prices for our Owners:
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