For many years, airlines and hotels have maximized their sales revenues using dynamic pricing. For those unfamiliar with the concept, dynamic pricing increases and decreases the price of a good based upon timing, and demand. When it comes to a hotel, this may mean that a room rate will increase as it reaches closer to a particular date or if the hotel is almost out of availability. While this is obviously advantageous for the hotel and airline market, vacation rental owners have traditionally priced their properties based upon the season, with a few special weeks, like Christmas, New Year’s, and Easter, where they can charge more based upon demand.
MarketMinder, part of AirDNA, has just announced a recent collaboration with Futurestay, which will now help vacation rental owners maximize their rental revenue through dynamic pricing. Linked with Airbnb, VRBO, Booking.com, and Google Vacation Rentals, pricing becomes automated, as does communication with guests, financial transactions, and direct-bookings.
Owners may be of the opinion that this implementation will “standardize” the vacation rental industry in places like Playa del Carmen and Tulum, where there are thousands of options. However, I would argue that, like the boutique hotel industry, those that go the extra mile to make a unique guest experience will be rewarded with better reviews and higher rates over time, which in turn will separate them from the pack and allow them to generate more income.
