Getting vacation rental pricing right is an art. Ask for too much, and you might end up with more gaps in your calendar than you’d like to see. Ask for too little, and you risk leaving money on the table.
Technology has made the lives of property managers easier in countless ways, and setting rates is no exception. Using dynamic pricing tools to generate automatic rates is a great way to get ahead of the competition, boost your revenue and maximize your occupancy.
“Dynamic pricing is a response to dynamic demand.”
Dynamic pricing solutions allow you to optimize your rental’s performance by frequently adjusting your nightly or weekly rate based on real-time market data.
The price adjustments are automatically generated by algorithms that leverage machine learning to understand fluctuations in supply and demand.
This data-driven approach takes into account multiple factors that help to determine the perfect pricing for your vacation rental, analyzing your competition as well as real-time demand, occupancy, performance, etc.
Using dynamic pricing software to adjust your rates can significantly boost your revenue. Leading dynamic pricing providers claim that their data-driven solution can increase your revenue by as much as 40%.
Implementing automatic pricing based on real-time market data is also a great way to avoid low occupancy rates. The more competitive your prices are, the more likely it is that someone will book your rental.
While there is no all-in-one vacation rental software solution on the market that could cover 100% of a professional property manager’s tech needs, there are quite a few hybrid platforms that combine a variety of different features.
For example, some of the top property management systems (PMS) and Vacation Rental Software have built-in revenue management modules that you can use to automatically adjust your prices. So if you’re not ready to commit to a dedicated dynamic pricing tool, check whether your PMS has a pricing feature with advanced capabilities.
The other option is to work with a company that specializes in dynamic pricing. There are several dynamic pricing platforms on the market that integrate with other vacation rental software – top PMSs and Channel Managers – as well as listing sites.
Let’s take a look at the best dynamic pricing solutions out there.
So now, let's take a look at the Top 6 dynamic pricing tools for vacation rentals.
Beyond Pricing has built an advanced dynamic pricing solution that accounts for changes in demand on a daily basis to help you maximize revenue and occupancy.
The software assigns a pricing Health Score to your properties to make sure you’re always aware of opportunities for optimization.
You get detailed insights with every price recommendation, so you don’t need to wonder why prices are going up or down in your area on a given day. The tool also helps you plan ahead by providing a preview of pricing recommendations for the next year. The Beyond Pricing platform connects seamlessly to the most popular property management systems.
In mid-2017, Beyond Pricing acquired competitor Smart Host to leverage their technology and bring more sophistication to pricing in the vacation rental market.
Pricing: 1-1.25% of total revenue. 30-day free trial available.
PriceLabs offers customizable data-driven pricing to help boost your vacation rental revenue. Their price recommendations take into account market supply and demand, seasonal and day-of-week trends, special events/holidays, and lead time.
They pinpoint dates that are in high demand by looking at data from nearby listings and hotels, track seasonality based on historical data, and analyze your listings’ performance to suggest pricing tweaks. Customization options include setting dynamic minimum stays, enabling occupancy-based adjustments, and more. PriceLabs connects directly to over 30 PMSs and Channel Managers, including Rentals United.
Pricing: Starts at $19.99/month in the US, Canada, and Europe and $9.99/month in other countries (for 1 vacation rental property). 30-day free trial available.
Rented’s Automated Rate Tool (Art) provides dynamic pricing with powerful tools in an easy to use platform. For vacation rental managers that need hands-on support for pricing optimization rather than a pricing tool, Rented’s Revenue Management Service provides a dedicated revenue manager that specializes in handling every detail: setting prices, monitoring performance, and making custom adjustments.
Wheelhouse helps Airbnb hosts, vacation rental owners, and property managers run their business more efficiently with tools like dynamic pricing, powerful data insights, and a personalized revenue management strategy.They help you stay competitive throughout the year with more than 240 unique rates per year.
Wheelhouse’s team of Ph.D. Data Scientists has built a software solution that can help you harness the power of real-time data insights to understand pricing once and for all.
Advanced settings help you control how aggressive you want your pricing strategy to be and align it with your overall business goals.
Wheelhouse integrates with several popular PMS providers.
Pricing: 0.75-1% of total revenue. 30-day free trial available.
Leading vacation rental data company AirDNA has developed its own dynamic pricing tool called Recommended Rates. The tool is currently in beta mode and can be used free of charge by all AirDNA MarketMinder subscribers.
With this tool, AirDNA has taken its Market Rates calendar, which allows users to filter daily prices of similar rentals, a step further.
The Recommended Rates calendar uses artificial intelligence to analyse a rental’s past performance with local market dynamics to generate price recommendations. The team is currently live testing the already sophisticated algorithm to allow them to further optimise it.
Pricing: MarketMinder subscriptions range from $19.95/month to $99.95/month.
DPGO is a dynamic pricing tool for hosts, vacation rental owners, and short-term rental managers. Our AI-driven software analyzes over 200 market data parameters and increases your occupancy rates by up to 90%. Manage prices and availability rates easily with data-driven insights and extensive knowledge of your target market.
Develop a pricing strategy based on daily market insights.
Expand AI-recommendations with your own strategy preferences.
Access market insights specific to your target area.
Take advantage of discounts, plus seasonal and weekend price adjustments.
Make use of market supply and demand modelling, trend forecasting and holiday predictions.
Track and improve the success of a single listing or an entire portfolio with integrated metrics.