Demand-responsive Pricing: Smoky Vistas’s demand-responsive pricing technology—modeled on hotel revenue management methodology—not only drives higher occupancy but adjusts daily rates to maximize long-term income while minimizing homeowner risk. And because the market isn’t static, neither are our prices.
Finding the Delicate Balance Between Occupancy and Daily Rate
Although many vacation rental companies focus on ADR (Average Daily Rate), our experience demonstrates that RevPAR (Revenue Per Available Rental) is the single best metric for comparing property performance. In other words, it’s not about setting the highest price over the year, it’s about setting the highest price that guests will book each day.
A study by the data analytics company AirDNA showed that the best performing property managers have an Average Daily Rate (ADR) of about 11% lower than the average. Still, they far and away make up for it with an 81% higher Occupancy Rate. The best performing property managers are better able to find the delicate balance between occupancy and daily rate.
“The conclusion that can be made is that dynamic pricing is a critical component of maximizing revenue.”
— Scott Shatford – Founder & CEO – AirDNA
Regular Pricing Reviews
We divide the year into 18 pricing periods and adjust prices for each period between 8 and 20 times each year. Our real-time intelligent data tools are combined with human intelligence to look at each home’s performance to account for changes in demand.
Setting the Right Strategy
Having a strategy behind your rental rates is critical to your success. Not only is it the key to driving profit, but many guests filter by rates first and then look at other factors including home quality and amenities.
We work with each of our owners to set a pricing strategy that aligns with their individual risk and reward preferences. Together, we’re working to put the leverage back in the hands of vacation homeowners, making possible for them to actually enjoy their home, whether they’re staying there or someone else is.