Price optimization is essential when managing vacation rentals to maximize revenue. To achieve this, Host Wise uses PriceLabs, a revenue management tool that allows you to adjust prices daily, ensuring that we are always aligned with market demand and dynamism.
Main Advantages of PriceLabs
Dynamic Pricing and Daily Updates
PriceLabs adjusts prices based on market demand and pre-defined rules. This frequent updating ensures that prices are always in line with trends and increases your properties’ visibility on OTAs, such as Airbnb and Booking.com.
Example of dynamic pricing in one of our properties (bluish colors represent periods with greater demand)
Occupancy vs Advance Booking
Host Wise sets specific criteria that allow PriceLabs to increase or decrease prices depending on occupancy and how far in reservations are made within 365 days. This allows us to have greater control over the occupancy we want to generate in advance from a risk reduction perspective
Example of one of the occupancy vs. advance reservations tables
Filling “holes” between Reserves
Another advantage of PriceLabs is the ability to manage the “holes” between reserves (so-called “orphan gaps”). With automation that adjusts the minimum stay, we can increase occupancy by filling these days, thus avoiding empty days. We can also set automatic price increments for these types of one-night stays.
Example of automation to change the minimum stay to 1 day
Real-Time Comparison with the Market
PriceLabs allows us to compare our prices with the market in real-time. This feature helps us quickly identify when our prices are too high or low, ensuring we are always competitive.
Example of our listed prices vs. the market.
Organization of the strategy in Clusters
To maintain price parity in similar properties (e.g., identical properties in the same building), we create clusters with the exact definition of pricing rules. This strategy also allows you to increase visibility on OTAs due to greater availability on the calendar and capture of a greater volume of reviews per listing.
The Impact on Short-Term Rental Management
Increase in occupancy
Smart price adjustments result in more bookings, even during periods of lower demand.
Better visibility across platforms
Updating prices daily makes your properties more sought after on OTAs.
Yield Maximization
By dynamically adjusting prices, we ensure that each booking reflects market value.
Risk reduction
Capturing reservations earlier via market-adjusted prices allows us to generate occupancy sooner, reducing risk.
Therefore, using PriceLabs strengthens our position as experts in vacation rental management, ensuring that our customers’ income is maximized.