Vrbo fees, occupancy rates, demand trends, cleaning fees, and other factors should all go into determining the best price to list your property on Vrbo. However, tracking down and analyzing this information can take up hours of your time. Thankfully, there are a ton of advancements made to assist vacation rental property owners when it comes to pricing.
Instead of taking on the daunting task to track down and analyze all of this information to set your vacation rental pricing, utilize a pricing tool made specifically for Vrbo hosts: dynamic pricing from Beyond. It’s the best way to not only determine the right price for your property, but to also maximize revenue, increase occupancy levels, and put time back in your day. Let’s take a look at how dynamic pricing works.
What is Dynamic Pricing?
Dynamic pricing takes all of the guesswork out of pricing and helps you get booked at the best price, at the best time. Beyond uses a dynamic pricing algorithm that automatically prices your properties to maximize daily rates and keeps your occupancy at ideal levels. There are thousands of factors that can be used to determine demand on any given day, but Beyond and our team of expert revenue managers have identified the top factors that consistently prove to make you the most money and match demand.
How Does Dynamic Pricing Work?
Dynamic pricing uses an algorithm that takes away the tedious guesswork, uncertainty, and stress caused by static pricing. The algorithm has the ability to meet demand where it’s at - automatically increasing or decreasing the price of your Vrbo listing based on historical and real-time data, all done on a daily basis. Plus, Beyond’s dynamic pricing platform includes free access to comprehensive data about your local markets & competitors so that you can expertly understand your market and outshine your competition.
It all starts with the Base Price. The Base Price is the starting point for price fluctuations – think of it as the average price for your Vrbo listing for the year. When new Beyond users set up their accounts and connect their Vrbo listings, an initial Base Price will be set automatically. This is just a reference point to get Vrbo hosts started, and they can adjust their Base Price at any time.
What Factors Go Into Setting the Right Price?
1. Your market's seasonality trends
To get the correct seasonality pricing, Beyond looks at seasonal trends and fluctuations going back 6+ years. We factor in this seasonal trend for every hyper-local area, which determines when and to what extent we increase prices for high, shoulder, and low seasons.
2. Demand trends for day of the week
Understanding the difference in demand for mid-week versus a weekend day is also crucial to correctly setting prices for your Vrbo listing. In a city, for example:
- The downtown area may have high pricing on weekends.
- The financial district may actually have higher demand for Monday - Thursday.
- And the suburbs might be somewhere in between.
All of these factors need to be taken into consideration to get the right daily price. And because days of the week are not a constant indicator of demand, and depend on the time of year, Beyond also analyzes on a seasonal basis, not a static one.
3. Events and holidays that spike demand for vacation rentals
Events tend to be the hardest to price correctly and therefore deserve the most attention. On the one hand, events can create peak demand in many markets and are the best times to maximize earnings. On the other hand, big events in your market might lead to increase in supply and therefore increased competition in your market. Because of the ever-changing demand and supply for events, we recommend using Beyond so you can ensure that you are always the most competitively priced host or property manager in your neighborhood.
Bonus Vrbo Pricing Tips
Vrbo hosts should also take into consider these tips when it comes to pricing their listings:
- Unlike the hotel and Airbnb industry, Vrbo pricing relies on seasons rather than nightly prices. For this reason, it's important to utilize the weekend and event season settings on your Vrbo listing.
- As a Vrbo host, having access to short-term rental data and analytics is critical to have at your fingertips so that you can understand your market and benchmark your performance. Plus, having a competitive view and understanding of nearby, similar properties can give you a leg up when it comes to building a successful revenue management strategy. Beyond offers free, unlimited data and analysis through Insights.
- If you are both an Airbnb host and Vrbo host, keeping your rates consistent across platforms can be labor-intensive if you are doing it manually. Using dynamic pricing from Beyond will help keep nightly prices consistent across all your listing locations.
Ready to get started using dynamic pricing for your Vrbo listings? Get started with Beyond today and claim your free credit!