It's official: A single month’s worth of Beyond’s Availability Yielding has priced over $28 million in revenue and thousands of bookings. That’s an impressive number of bookings made possible by Beyond’s new automatic pricing adjustment feature—and that’s just the start.
The Beyond Data Science team sought to make it easier for hosts and property managers to optimize pricing and boost occupancy on dates that are historically likely to go unbooked.
What does this mean? Rates typically rise on Christmas Eve and Christmas day due to a higher demand for these dates. Let's say Christmas Eve is already booked and Christmas day is still available, would demand trends for Christmas day remain the same? There will likely be a lower demand for Christmas day since travelers will have to check in after the start of the holiday. Therefore, Christmas day's premium will need to be lowered—Availability Yielding does this automatically!
How Did We Do It?
Success didn’t happen right away—we had to think outside the box, and with research, feedback, and analysis, the Beyond Data Science team developed a better understanding of demand patterns based on the availability of the days around another reservation.
The great news? Nights that have higher chances of being left unbooked will not be left to chance with this addition to Beyond’s Dynamic Pricing. Availability Yielding is now included in our algorithm to discount the days appropriately to increase the occupancy of hard-to-sell days and revenue.
Tired of the tedious work of checking if your prices are right for dates left open around a booking manually? Hesitant about whether the prices you set for these dates are too high or too low? Harness the power of Availability Yielding, Beyond’s built-in solution that automatically adjusts pricing for surrounding dates.
Save those clicks, spreadsheets, and long hours by letting Availability Yielding do the heavy lifting.
Upgraded Algo = Increased RevPan and More
The Revenue Management team highlighted a few of their findings from extensive testing:
Availability Yielding secures a 2% increase in RevPan: On average, RevPan grew by 2% when Availability Yielding was implemented for Beyond’s customers.
Improves performance and boosts occupancy: With this new automated feature, we’ve expanded ways to capture more bookings. In one month alone, more than 76,000 days were booked with Availability Yielding incorporated.
The Beyond platform is truly a partner in your pricing strategy: We are the only solution that embeds Availability Yielding into our pricing algorithm.
Users will be able to see the line item for Availability Yielding in the calendar breakdown, as seen in the image above.
How Will it Impact my Listings?
If you’re a Beyond user, Availability Yielding will apply to all available days with bookings 1-2 days before or after them. Here is a list of 4 possible variations used:
- One day before is booked
- One day after is booked
- Two days before is booked
- Two days after is booked
Depending on what variation applies, a discount percentage will be applied, up to -30% off, unless it hits the listing annual or seasonal minimums. This is done automatically, so you don't have to worry about catching these harder-to-book days yourself, nor do you have to worry about finding the right amount of discounting in order to drive more demand for that night. Discounts are automatically computed based on the time of year and day of the week, as well as how far away the day is from today, meaning we discount less if the day is next week versus in 9 months.
Beyond’s pricing algorithm calculates seasonality, event, and day-of-week factors that are then applied to the listing’s base price. While overall demand for each day is vital to getting the price right, demand for each day is also influenced by the availability of the days around it. This new addition to our algorithm allows us to further optimize our pricing by discounting based on the probability of getting booked for each available date combination to make the most of available occupancy demand.
Beyond’s Revenue Management team is constantly reviewing and analyzing the raw data we have from more than 340,000 global listings, to identify patterns and come up with new ways to improve our pricing algorithm. We know these adjustments to our algorithm are consistently helping our users make more revenue and grow their businesses.