Determining rates for 2020? The Price Point Tool can Help!
The end of the summer season is when many vacation rental companies start making big decisions for 2020. With months before the next big wave of visitors, this is the time of year when property managers start reviewing their guest leases, their property management agreements, their upcoming marketing campaigns, and perhaps most importantly, their property rates for the following year.
Obviously, there are a number of factors that go into determining these annual rates. Homeowner input is obviously key, but so is understanding the local market, studying the number of reservations for the current and past years, and examining how a vacation rental performed throughout the seasons. In essence, it’s a lot of data to sift through, and it’s a process that can take days, weeks, and even months of a management team’s time.
This is where the Price Point Tool comes in.
The Price Point Tool is one of LSI’s “mini tools,” and it’s utilized by property management companies to examine rental home performance based on various price points.
With the price point tool, you can compare similar properties, examine the success of varying rates, and essentially make smart decisions on how to price your homes across the board.
The way it works is simple. Determine the varying price ranges you wish to review, update your settings with a couple of clicks, and the Price Point Tool does the rest through an easy-to-scan and color coded dashboard that will let you see at a glance what homes are doing well, and which homes’ rates may need to be adjusted for the upcoming season. In addition, you can also use the Price Point Tool to gauge the success of marketing campaigns for a specific hierarchy of properties, or even identify properties that should not be kept in your property management program in the following years.
What else can the Price Point Tool do for your company? Let us count the ways…
With the Price Point Tool, your company can:
- Review the booking performance for your specified price points
- Identify weeks or price points that might be overpriced or underpriced
- Evaluate an entire year of performance to determine any needed rate changes for next year
- Monitor low-performing weeks to launch promotions for certain price points
- See the success of specials or discounts on targeted price points
- Use data found in a troubled price point to research and identify potential problem properties
Stay on top of the numbers that matter most while you ensure that your properties are maximizing their rental income. The Price Point Tool will allow you to make smart pricing decisions that enhance your bottom line, both next year, and in the many years to come.