Successful Hosts and Property Managers know that changes in demand are constant and can have huge impacts on their bottom line. And with more properties entering the market, it's becoming even more important to find ways to stand out and stay competitive. That's why it's crucial to evolve your pricing strategies to ensure you're maximizing your returns and not leaving money on the table. But what if you're missing out on potential earnings and don't even know it?
That's where Beyond’s detection of decreased demand periods comes in. With this powerful component of Beyond’s pricing algorithm, you can uncover possible revenue opportunities and turn days with softening demand into profitable wins.
What is Low Demand Event Detection?
Do you sometimes fear that pricing your property too high on some days might result in missed bookings? or setting high prices on peak and surrounding low-demand days, leading guests to overlook your property and book elsewhere?
Whatever your role is, from managing one listing to hundreds, or being a revenue manager yourself, we understand the frustration of losing potential guests simply because the price was too high. Our team of experts gained a better understanding of how to identify intervals of excessive lack of demand. Then, we found an improved way, through A/B testing, to apply the appropriate decreases to these days to our pricing logic.
For example, if there's a large event happening in the area that causes a spike in demand, we'll increase the price for those days. However, if there are days before or after the event with very little demand, we'll decrease the price—this strategy is very effective in reducing unsold nights without impacting a popular event or holiday.
This means that you don't have to worry about overpricing your property during low-demand days, and you can feel confident that your pricing is always optimized to attract more bookings leading to increased profits.
Pricing with Precision
At Beyond, we know that changes in demand can greatly affect your bookings. Our team of Revenue Managers and Data Scientists is dedicated to finding the perfect pricing recipe that unlocks opportunities for the days that would typically go unbooked. Hence the improved Low Demand Event Detection to spot drops in demand and apply discounted pricing factors over time. Now you can confidently fill your calendar, improve your occupancy rates, and increase your revenue.
Don’t believe it? Well, over the last 4 months, we tested it! And the results were clear—properties with Low Demand Event Detection implemented experienced an impressive 0.79% boost in Revenue per Available Night (RevPAN) and a remarkable 0.89% uptick in Occupancy rates, all achieved with a mere 0.10% reduction in Average Daily Rates (ADR). This solution not only propelled bookings and earnings for model days but also for days surrounding them.
Hosts, Property Managers, and Revenue Managers are able to exercise the appropriate pricing with ease as this new feature catches these days for them. And at no added cost to Beyond users!
How will it work?
Our algorithm will review the next 180 days on your calendar and it will factor in a discount for periods of negative demand trends. The impact of the discount decays the further the days out to ensure prices aren’t too low or result in any underselling of your properties. No action is needed on your part!
The constantly shifting landscape of our industry means that your pricing strategy needs to evolve continually to stay ahead of the curve. At Beyond, we understand this challenge and our pricing algorithm takes into account various factors such as seasonality, events, and day of week (DoW) to calculate daily prices. While this is a great starting point, these factors are not always sufficient to achieve optimal pricing for your listings. This new results from an A/B test of our pricing logic are key to further the perfecting of your pricing strategy by discounting days with lower demand trends to make the most of available occupancy demand.
We pride ourselves on going beyond and our team of Revenue Managers and Data Scientists is continuously analyzing and reviewing the vast amount of data we have gathered from over 340,000 global listings to identify patterns and come up with new ways to enhance our algorithm. We take pride in the fact that these adjustments have consistently helped our users increase their revenue and grow their businesses. Learn more about Low Demand Event Detection.