Customer type: Revenue Manager
Region: Dubai
Products: Dynamic Pricing
Number of listings: 900+
PMS: Avantio
Executive Summary
Primestay, a prominent real estate company in Dubai, increased its RevPar by up to 20% and improved operational efficiency after implementing PriceLabs. This case study explores the challenges they faced with manual pricing strategies, the solution provided by PriceLabs, and the remarkable results that followed, alongside key advice for other revenue managers considering dynamic pricing solutions.
About Primestay
Established in 2018, Primestay manages a diverse portfolio of over 900 properties, including both short-term and long-term housing options located in Dubai’s prime locations. The company is known for its strong presence in the real estate market, led by CEO and co-founder Anthony Joseph, a notable figure with a substantial social media following and author of two best-selling books.
Challenges Before PriceLabs
Before adopting PriceLabs, Primestay relied heavily on manual processes to set prices. Lijo Jose (Revenue Manager, Primestay) shares that he and the listing team had to research the market and set prices individually for all the listings. They also had to go to Airbnb to do the price comparisons individually. This manual approach not only drained resources but also limited their ability to respond quickly to market changes, ultimately affecting their revenue potential and operational effectiveness.
“The entire pricing was done manually through Excel sheets. It was very time-consuming,” says Lijo Jose
PriceLabs as a Solution
Primestay found a solution in PriceLabs, which simplified and automated pricing decisions. With a one-month free trial, they quickly realized the benefits. The team no longer had to set prices for each listing manually. He found the tool to detect high and low demand periods and set prices accordingly. The automated system allowed for real-time price adjustments based on occupancy rates and market data, vastly improving efficiency.
Lijo likes how Neighborhood Data gives information about how others are pricing their property.
“We don’t have to go to multiple platforms to understand competitor rates, we can just see all of that information in Neighborhood Data. It is very simple and time efficient”
– Lijo Jose, Revenue Manager, Primestay
Lijo also explains that they can set min-stay rules via PriceLabs, which again was a manual process earlier. For example, if there’s an event, they can easily increase the minimum stay through PriceLabs. The team found the platform user-friendly with an easy interface. The support articles often help Lijo and the team whenever they are stuck anywhere.
Implementation and Results
The implementation of PriceLabs led to significant outcomes for Primestay, with Lijo noting a 15-20% increase in RevPar compared to the previous year during the same period. The dynamic pricing tool not only alleviated the workload by automating daily price revisions but also provided strategic insights that enabled more competitive pricing.
“The tool is really helping us set the prices. We had at least 15 to 20% more revenue generated in comparison to the previous year the same period.”
– Lijo Jose
Advice to Other Revenue Managers
Lijo acknowledges that sometimes revenue managers are skeptical about increasing prices. He emphasizes that using tools like PriceLabs not only aids in achieving better revenue management but also improves the team’s efficiency. He also believes that there’s enough return on the investment made on such tools.
