Summary:
- PriceLabs Pricing Offset offers revenue managers precise control, enabling fixed or percentage-based adjustments to Recommended Prices.
- Maintain price parity or accommodate unique fees on different channels, with the flexibility to set distinct prices for the same property.
- Explore scenarios demonstrating channel-specific pricing strategies and customization options for unmapped listings.
- Revenue managers using Property Management Systems (PMS) should verify settings to avoid unintended consequences of Pricing Offset.
- Adopt a holistic approach by combining PriceLabs Pricing Offset with other customizations, tailor strategies based on channel needs, and regularly review and adjust to stay adaptable in the dynamic short-term rental market.
In the ever-evolving landscape of short-term rentals, revenue managers face the challenge of optimizing pricing across multiple channels. One powerful tool at their disposal is the Pricing Offset feature offered by PriceLabs. In this guide, we’ll delve into the intricacies of Pricing Offset and explore how revenue managers can leverage this feature to achieve pricing precision and channel-specific strategies.
Understanding PriceLabs Pricing Offset:
PriceLabs Pricing Offset allows revenue managers to set fixed or percentage-based price changes on the Final Price, superseding all other customizations.
This feature proves invaluable for maintaining price parity across mapped listings from different channels or accommodating extra fees and costs associated with specific platforms. It allows you to set different prices for the same listing on different platforms, whether they are mapped on PriceLabs or not. You can do that on a group or account level. If the listings are mapped, then you need to set Pricing Offset on the account level to avoid it overriding other customizations. Let’s understand this better with examples.
Scenario 1: Channel-specific Pricing Parity
Consider a revenue manager handling listings on both Airbnb and VRBO. Using it, they can ensure that Airbnb prices consistently stay 8% higher than the VRBO prices. This strategic approach helps maintain competitiveness while accommodating each channel’s unique fee structures.
Scenario 2: Unmapped Listings Customization
Pricing Offset isn’t limited to mapped listings. For unmapped listings, revenue managers can navigate to the Customizations section, specifically Advanced Customizations, to apply offset on a per-listing basis. Flexibility with pricing is essential to customize strategies for each property, ensuring they match the overall revenue objectives.
Here is a step-by-step guide to understand how to step Pricing Offset on PriceLabs.
Cautionary Note: Considerations for PMS Integration
Revenue managers utilizing Property Management Systems (PMS) linked to various channels must exercise caution. It, being a top-layer customization, impacts the final price pushed to the PMS, which subsequently reflects across all connected channels. It is also to be noted that most PMS/Channel Managers have their offset/markups turned on. This will also be added on top of the Pricing Offset. Thorough verification of settings is advisable to avoid unintended consequences.
For example, you have 2 listings for which the underlying property is the same. One is on Guesty, and one is on Airbnb. Assuming you are connected to Airbnb within Guesty, have to be careful when applying pricing offset here. This is because then both Guesty and PriceLabs will push prices to the same Airbnb listing.
Best Practices for Revenue Managers:
- Comprehensive Customization: It works in conjunction with other customizations like Date-Specific Overrides, Orphan Discounts, etc. Revenue managers should adopt a holistic approach, ensuring all customizations align seamlessly to achieve optimal results.
- Scenario-specific Adjustments: Tailor Pricing Offset based on channel-specific requirements. Whether covering higher fees on one platform or strategically positioning prices for increased visibility, scenario-specific adjustments enhance overall revenue management effectiveness.
- Regular Review and Adjustment: The dynamic nature of the short-term rental market demands constant adaptation. Revenue managers should regularly review and adjust PriceLabs Pricing Offset to align with market trends, changing fee structures, and business goals.
Conclusion:
In the hands of a savvy revenue manager, Pricing Offset emerges as a potent weapon for crafting a nuanced and effective pricing strategy. By understanding and harnessing the capabilities of this feature, revenue managers can unlock new levels of control, ensuring their pricing aligns with channel dynamics and overarching revenue objectives. PriceLabs’ Pricing Offset feature is not just a customization tool; it’s a key to unlocking the full potential of revenue optimization in the competitive world of short-term rentals.
About PriceLabs
PriceLabs is a revenue management solution for the short-term rental and hospitality industry. It was founded in 2014 and is headquartered in Chicago, IL. Our platform helps individual hosts and hospitality professionals optimize pricing and revenue management. It does so by adapting to changing market trends and occupancy levels.
With dynamic pricing, automation rules, and customizations, we manage pricing and minimum-stay restrictions for any portfolio size, with prices automatically uploaded to preferred channels.
Every day, we price over 275,000+ listings globally across 125+ countries, offering world-class tools like the Base Price Help and Minimum Stay Recommendation Engine. Choose PriceLabs to increase revenue and streamline pricing and revenue management. Sign up for a free trial at pricelabs.co today.