When Vacasa cares for your vacation rental property, you’ll worry less and earn more—a lot more. Our proprietary dynamic pricing technology helps us deliver on average 20–30 percent more in annual net revenue than vacation rental managers who use traditional pricing strategies.
Read on to learn how our dynamic pricing technology works and what to expect when experiencing it for the first time.
Big data and machine learning are enabling companies in more industries than ever before to charge fluid prices that automatically adjust based on market conditions. This method of “dynamic pricing" relies on advanced algorithms that factor in millions of data points to set the right price, for the right customer, at the right time.
As dynamic pricing technology becomes more available, fixed prices are becoming a thing of the past in many digital marketplaces. Vacasa brought dynamic pricing to the vacation rental industry. Combined with our incredible local teams, a dedication to cutting-edge technology has helped us consistently deliver higher profits for vacation homeowners and become the largest manager of vacation homes in North America.
Powered by machine-learning algorithms, our dynamic pricing system monitors rates throughout the day and adjusts them in response to changes in demand or market conditions. It knows when to command peak pricing and when to adjust for softening demand in order to keep the bookings coming. With technology doing the heavy lifting, our analysts can focus on optimization.
We back up our industry-leading technology with regionally focused analysts so you benefit from the best of both worlds. Your dedicated regional analyst monitors our algorithms and fine-tunes for optimal impact. This combination of technology and human expertise helps us deliver vacation homeowners around the world the best return on investment.
Our system delivers you the optimal rate by booking your home at the optimal moment. We analyze the booking pace of your market, then compare that to the current and historic pace of your home and its competition, slowly adjusting rates to deliver the best return.
Optimizing your revenue may mean closing the booking window. For example, you may be used to seeing your peak season calendar fill up months in advance. That may be convenient for property managers who have to manually book out their homes, but it can leave a lot of money on the table.
Pretend for a minute that your bookings are retail products. Early bookings for peak season are a bit like discounted retail products at a Black Friday sale. Your bookings may fly off the shelves, but your product is selling at a sub-par price point. By waiting for the available supply of homes to decrease, we’re able to hold out for the optimum rate.
Our pricing system is designed to establish long-term profitability for your home. This means lowering rates today (to get your first bookings sooner) so we can charge higher rates tomorrow.
Your first bookings are crucial for two reasons: getting your home prominently featured on booking sites like HomeAway and VRBO, and getting positive reviews.
Many of our major booking partners have a ramp-up period during which they judge how desirable your listing is for guests—and how highly it deserves to be ranked on the site’s platform. We build a perfect listing to meet these sites’ basic criteria, but we also want to show early conversions (bookings) to demonstrate your home’s value to guests. By lowering your prices for the first few weeks, we can get those initial bookings sooner and help your listing accumulate reviews, which promote even more bookings.
Establishing your home’s profile with early bookings and positive reviews helps your listing rank better on booking sites. This sets you up for long-term success. As your number of positive reviews increases, we are able to attract guests at a peak market rate. More reviews lead to more bookings, improving your conversion score and, as a result, your ranking and ability to command higher prices—creating a pricing feedback loop.
Avoid setting minimum rates that block your ability to maximize booking activity.
Homeowners who have never experienced dynamic pricing may be hesitant to embrace a pricing strategy that involves variable rates. But our data shows that, with few exceptions, the best way to deliver more revenue is often by adjusting rates.
Our system may adjust a specific nightly rate to optimize your overall average daily rate (ADR). For example, if we see most people booking three-day weekends, we may drop rates on Wednesday so they book four days instead of three. Guests are more likely to book additional days when offered a competitive ADR, delivering you higher occupancy and more revenue.
In the below example, compare a home with a $200 minimum rate to one with no minimum. The ADR for a three-day weekend is $240, versus a more competitive ADR of $234 for the same reservation with fully dynamic pricing. The ADR is even lower if the guest adds on a Wednesday or Sunday night.
Though the difference seems small for one reservation, the more competitive ADR benefits revenue in the long run. Repeating this several times in the off-season adds up, while increasing conversion and reviews for peak season.
Our dynamic pricing technology is designed to help you win at the long game, with higher annual revenue. We might not advertise the highest rate every night—but we charge the smartest rate (remember the pricing feedback loop?) to earn you the best return over time.
While a lower rate on an individual night might not seem impressive in isolation, turning a three-night stay into a five-night stay or adding an extra 10 percent to occupancy by being able to rent during the off-season really starts to add up over time—especially as the review count increases.
We’re so confident in our dynamic pricing system that we guarantee you’ll earn more when you work with Vacasa. Feel free to reach out to us at 888.847.3340 with any questions.
There is no data to support this claim. Higher prices are not effective in deterring groups looking to party, as they can simply divide the cost among themselves. And fraudulent guests don’t care about price because they don’t plan to pay. When you work with Vacasa, you can rest easy knowing that our guest screening process is designed to weed out the bad apples.
Our rates are based on numerous variables, including seasonal weather patterns, holidays, location-specific events, competitor pricing, demand elasticity for your home, occupancy rates, lead time, current sales and promotions, regional demand trends, proximity to local landmarks, seasonal demand curves, changes in demand, and much more.
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