Within the world of short-term property rental, Revenue Managers provide a service that optimizes property management by maximizing occupancy rates. This is achieved through automated systems that adjust the prices of each property based on a variety of factors, such as seasonality, local events that attract visitors and market demand.

Revenue management is performed by specialized companies that carry out the dynamic adjustment of prices and all the necessary functions to meet the demands of owners and managers of temporary rental properties who aspire to efficient, fast and automated management.

The clients of Revenue Management companies are, therefore, people who manage the temporary rental of their properties on their own or administrators who manage the rental of several properties belonging to other people. For these clients, relying on the services of a Revenue Management company like ListingOK guarantees them an increase in their income. With us, you are guaranteed an increase of more than 20 percent!

 

How is dynamic price adjustment performed?

In order to be able to dynamically adjust prices, Revenue Management companies have software(RMS) that consists of a cloud platform that monitors in real time all the variables that affect the optimal pricing and availability of each property .  

 

These variables that are monitored are:

  • The current occupancy of the temporary rental properties in the area where the apartment you are working with is located.
  • The prices of the properties that have been rented up to that moment in that geographic area.
  • The prices at which temporary rentals of similar properties in the area are offered at all times of the year.

This daily monitoring makes it possible to forecast demand and occupancy for each zone at any given time. By using Azure Machine Learning to process the vast amount of data collected daily, it is possible to build models, make projections, react quickly to make informed decisions and take advantage of market opportunities to ensure that the rates for each property are always competitive and as profitable as possible. 

Another data that is reviewed daily is the visibility of each particular property within the OTAs, which are the online travel agencies where travelers enter to search for properties to book (such as Airbnb, Booking, Expedia Group, Despegar and Trip Group). The location within the OTAs’ search results is another factor that revenue managers take into account when setting the pricing strategy for each property.

To learn more about this topic, we invite you to read What does Revenue Management mean?