Demand for vacation rentals fluctuates throughout the year, sometimes even from day to day. Gone are the days of setting just one high season rate and one off-season rate if you want to make the most of your rental.
Airlines and hotels have used dynamic pricing for years, and the vacation rental industry is starting to follow suit.
What is rate optimization?
Instead of setting static nightly rates for a vacation rental, rate optimization considers a number of factors to determine the most appropriate price for your home.
Vacasa’s rate optimization technology is among the most sophisticated in the industry, and is how we make our homeowners an average of 34% more revenue than other management companies.
How does it work?
Our advanced system uses machine learning to track real-time changes in demand and set prices accordingly. It’s able to consider a complex set of variables when setting rates, such as:
- Season and weather conditions
- Regional events that attract travelers
- Proximity to popular attractions (e.g., 15 minutes from Disney World)
- Size and specific features of your property (e.g., beach access)
- Market rates for similar homes on third-party listing sites
- Timing (last-minute booking discounts, advance booking potential, holidays)
Originally developed in 2010, Vacasa’s system has grown smarter and more precise thanks to our talented team of analysts who monitor its performance day to day.
What does it mean for homeowners?
With Vacasa’s rate optimization technology, each home’s rates will be set at the ideal price for any given time to help secure more bookings, and great returns as a result.