What is Smart Pricing for vacation rental hosts?

What is Smart Pricing?

Smart Pricing is is a pricing strategy that helps you make data-based pricing decisions for your business. It allows you to take advantage of market fluctuations on an almost real-time basis. Also known as dynamic pricing, it  works by monitoring changes in the market and adjusting your rates accordingly. For example, if demand for accommodation in your area increases during peak season, you can use dynamic pricing to increase your rates accordingly. Alternatively, if there’s less demand during down times, you can use dynamic pricing to reduce your rates so that you don’t miss out on potential bookings. The idea is that no matter what the current market conditions are like, you’ll always be able to charge fair prices for your rental property.

How does Smart Pricing work?

The Travelnest Smart Pricing tool is powered by Wheelhouse and will leverage a variety of external data sources to conduct an ongoing analysis of your local market and determine an optimal price for each night. You will be asked to enter your minimum nightly pricing rate for the following year, and market rates will be refreshed every 24-48 hours to get you the best possible price for your bookings. Learn more about Travelnest Smart Pricing and how to enable it in your account in our help guide. 

The advantages of using Smart Pricing

There are several advantages to using Smart Pricing. One of the main benefits is that it helps hosts maximise revenue by ensuring that they are always charging competitive rates for your rental property. Dynamic pricing systems also lets hosts respond quickly to changes in the market to stay ahead of competition and remain profitable even during low periods, without having to do the manual work. Smart Pricing simplifies the process of setting pricing by eliminating the need for calculations or guesswork. Instead, all you need to do is set up a minimum rate in the automated system and let it take care of everything else.