Here are some tips to get ahead of questions from vacation rental property owners when it comes to dynamic pricing
As a property manager, the benefits of dynamic pricing might seem clear to you: more accurate prices on your listings, access to decision-driving data and insights, time savings, and, ultimately, maximized revenue. However, your owners will undoubtedly have questions
Owners are often used to static, flat pricing and may be confused when they see prices adjusted daily. So when you decide to make the big switch over to dynamic pricing, extra communication with your owners goes a long way to get them on board. Adopting dynamic pricing is not just adopting new technology, it’s adopting a new approach to pricing that comes with a lot of benefits. It’s important to lay them out for your owners and get ahead of any questions they might have.
We’ve put together these tips to help you get ahead of your owners’ questions and possible hesitations around dynamic pricing. At the end of the day, they should be reassured that their properties are in the best hands and that dynamic pricing will help them achieve their goals.
Ready to put these tips into action? Copy and paste the email template below to get your owners bought in on dynamic pricing today.
Tip #1: Educate Vacation Rental Owners on the Why and How
When shifting to a new strategy, it can be helpful for your owners if you take an educational approach. Dynamic pricing might be a 180 change from what they are used to, so educating the main benefits of dynamic pricing to your owners can go a long way in easing any anxieties and gives you a chance to show off your expertise. It might be helpful to compare dynamic pricing as similar to how hotels and airlines have been pricing for decades.
In your communications, you can include benefits of dynamic pricing like how it frees up time, ensures pricing is accurate and competitive with the market, grows revenue, and gives you access to the latest data and insights about the market & their listings. You could also share a success story of a similar owner when they switched to dynamic pricing or compare their listing’s pricing to the market. Don’t be afraid to show your owners the data. We encourage you to share with and show your owners how dynamic pricing responds to market changes and adjusts prices automatically.
Tip #2: Reassure Property Owners You Stay in Control
As the property manager, you are the expert and have your owners’ best interests in mind when making big changes. Remind them that when you win, your owners win, so you are equally invested in their success — and the best dynamic pricing tools are also equally invested in their success.
To ease any anxieties about lack of control over their pricing, make sure to communicate to your owners that safeguards are in place when setting up dynamic pricing. You are still in control with settings like minimum price, maximum price, minimum night stays, and more. These settings can be configured for their property to ensure that they are getting the best booking possible.
Tip #3: Over-Communicate the Value with Success Stories
If your owners are completely new to dynamic pricing, it might be best to over-communicate the benefits and what the transition looks like in the beginning. The email template below is a great start, but don’t be surprised if you need to deliver these same messages multiple times. Are your owners too busy to read emails? Consider also hosting a virtual town hall where you can lay out the benefits and give owners the opportunity to ask questions live — you might even ask a Beyond pricing expert to join your town hall.
On an ongoing basis, it would benefit you to keep clients updated on the results: sharing successful bookings, revenue lift, and occupancy. Regular updates will not only go a long way to ease their minds but also set you apart from other property management companies in your area. The Beyond platform makes it simple to share these updates with your owners - many of our successful partners will download stats and insights right from the platform. Some will highlight their success within insights compared to the market
Getting ahead of your owners’ questions and possible hesitations around dynamic pricing, you can easily win them over. By sharing examples of your Market Data, highlighting occupancy information, and explaining how you are adjusting pricing strategies, you will build confidence in trust with your owners.
Email Template to Sell Vacation Rental Owners on the Benefits of Dynamic Pricing:
SUBJECT LINE: Exciting Updates: New Dynamic Pricing & Upcoming Town Hall
Hi <Owner’s Name>,
We are writing to you today to let you know about an exciting development. We are transitioning to dynamic pricing to ensure that we continue to provide the highest possible level of service, earning you the most revenue, while taking care of your property like it’s our own.
What is Dynamic Pricing from Beyond?
Similar to the pricing tools that power hotels and airline pricing, Beyond’s dynamic pricing sets and manages rates based on supply and demand for every night of the year, as well as comparable market factors particular to a home: special events, seasonality, day of the week, etc.
Why The Change?
We are entering a new age in the vacation rental marketplace of increasing pricing transparency and expectations for guests. Dynamic pricing is a sophisticated way to utilize data to develop a pricing system that maximizes the revenue potential of your listing. To put it simply, it’s changing your pricing to match supply and demand. Airlines and major hotel companies have been using this method for decades, and it’s continuing to be adopted by other industries for one reason – it works.
What Does This Look Like For You?
As a homeowner, this means your rates may fluctuate more significantly for upcoming confirmed rentals and will look different than they have in the past. We retain full control over pricing and have implemented different controls (such as minimum prices), so you will never see prices that fall drastically below what we have agreed upon/what you have seen in the past. In fact, the tool tends to price higher than we would anticipate for some periods, especially during holidays and high-demand local events.
What are the Benefits? Dynamic pricing means more revenue for your property because we:
- Get the best daily price – automatically
- Eliminate the guesswork with pricing backed by industry-leading data
- Stay in control with minimum prices, minimum stays, gap fills, and customizations
- Extend your booking season by optimizing occupancy and pacing
Should you have any questions please do not hesitate to reach out! And be on the lookout for an invite to our upcoming townhall where we can talk about dynamic pricing in more detail.
By communicating with your owners the right things at the right time, selling them on the benefits of dynamic pricing should be a breeze. Are you still considering introducing dynamic pricing to your business? We’d be happy to chat with you. Reach out for a free demo!