Updated: April 12, 2024
Looking to successfully launch new short-term rental properties in 2024, be it multi-unit or individual units? Wondering how to effectively deploy pricing strategies that ensure early bookings? Seeking ways to garner positive reviews and elevate review scores for potential price adjustments?
Then this exclusive Masterclass is for you!
In this rich and diverse conversation, Host Thibault Masson, Head of Product Marketing at PriceLabs and Founder of Rental Scale-Up, talks with industry experts;
- Sarah Franzen, Founder, RevZen
- Fabio Castiblanco, Head of Revenue & Analytics, SoSuite
- Sébastien Long, Founder & CEO, Lodgeur
- Monique DeLorenzo, Solutions Consultants, PriceLabs
The panel, delved into diverse and insightful perspectives, shared real-world experiences, and imparted practical tips tailored for larger property managers.
SESSION HIGHLIGHTS: Expert insights: Multi-unit and individual property launch strategies from RevZen, SoSuite & Lodgeur.
- Entering new markets & setting up new listings: Market research, competitor analysis, product positioning and hyper-local trends, plus refining your channel strategy for maximum visibility
- Pricing & revenue management: Make the right adjustments
- Pre-selling, discounts & reviews: Flywheel tactics to boost ratings and occupancy
- Navigating setbacks: Actions to take when strategies fall short
Watch the replay on YouTube
About the speakers
Sarah Franzen, Founder and principle consultant at RevZen, brings over a decade of experience in hospitality; specializing in revenue management for luxury short-term rentals. She earlier served as the Head of Revenue Management & Analytics at Natural Retreats, a multi-market property management firm, with over 1400+ luxury properties across the United States. In 2021 she was awarded the inaugural “Revenue Manager of the Year” award at the DARM Conference.
Fabio Castiblanco is the Head of Revenue & Analytics at SoSuite. A dynamic leader, Fabio is passionate about driving revenue growth through innovative pricing strategies, improved channel distribution and system optimization in revenue management. This passion blends perfectly at SoSuite, a hospitality company offering community-centric, tech-enabled living spaces, that seamlessly blends home comfort with hotel-like luxury, catering to both short and extended stays.
Sebastien Long, is the Founder & CEO of Lodgeur. He grew up immersed in his parents’ hospitality business and interacted with over 30,000 travellers before diving into the world of Banking. His company, Lodgeur, specializes in the multifamily hospitality sector, and focuses on converting empty apartments into furnished accommodations for short-term rentals or extended stays.
Monique DeLorenzo, a Solutions Consultant at PriceLabs, draws from her experience as a successful Vermont a-frame property owner to provide insightful guidance on revenue management and data analytics. Her firsthand hosting experience enables her to offer practical advice and strategic solutions to clients navigating the short-term rental industry.
1. Launch Strategies
Q. Where do you start? What do you think to do when you decide to launch a property?
Fabio Castiblanco: Fabio emphasized the importance of thorough neighborhood data and understanding competitors’ offerings when launching a new property. By aligning expectations with owners and considering local amenities, operators can effectively position their property within the market.
Sarah Franzen: Sarah stressed the significance of understanding market performance and utilizing historical data for insights. She advocates for starting with a broad approach to comparables and adjusting strategies over time based on performance feedback, particularly in the vacation rental sector.
Sébastien Long: Sébastien highlighted the need to identify target markets and analyze demand sources when entering new areas. He suggests caution when interpreting market data and emphasizes the importance of quality development and pricing strategies tailored to specific market segments.
Monique DeLorenzo: Monique brought in the PriceLabs perspective. She demonstrated the value of using PriceLabs’ Market Dashboard for comprehensive market research. Her main recommendation was to narrow down options based on key performance indicators and to create custom comp sets for accurate pricing strategies, particularly in competitive markets.
2. Developing Pricing Strategies
Q. What are the key factors and initial steps to consider when developing pricing strategies for new listings?
Sarah approaches pricing strategies by first understanding the unique goals of each property owner, whether they prioritize high occupancy or maximizing revenue. She emphasized the importance of setting a clear strategy and aligning it with owner preferences before fine-tuning pricing thresholds and adjustments based on market performance and guest personas.
Sebastian, focusing on multi-family properties, anchors pricing strategies around market rents and aims to exceed owners’ minimum threshold while ensuring competitiveness. He emphasized understanding demand for different unit types and being selective to maintain operational and financial viability.
Fabio adopts a similar approach, aligning pricing with ownership group targets and leveraging promotions to kickstart occupancy. He emphasized the need for flexibility and refinement, especially in dynamic markets, using tools like occupancy and seasonal adjustments for optimal pricing.
Monique, drawing from her experience and utilizing PriceLabs’ smart presets, emphasized setting a competitive base price and utilizing neighborhood data for benchmarking. She highlighted the utility of smart presets in guiding users through initial pricing strategies, especially for different property types like short-term rentals, multi-units, and midterm rentals, providing a valuable tool for pricing setup and optimization.
3. Making Adjustments in PriceLabs
Q. How do you handle pricing adjustments once a property is launched? Do you use tools like PriceLabs for base pricing or seasonal adjustments, or do you have alternative methods?
Sebastien: Sebastien emphasized their use of PriceLabs tools, particularly for multi-unit properties. They group listings based on similarity and apply rules accordingly, such as portfolio-based occupancy adjustments to set prices dynamically based on demand and booking window.
Sarah: Sarah highlighted the power of aggregation and segmentation in leveraging pricing tools. She discussed the importance of analyzing individual properties against the market over time, utilizing both high-level group structures and granular, individual adjustments for optimal pricing.
Fabio: Fabio echoed Sebastien and Sarah’s strategies, and discussed leveraging seasonal profiles to adjust base rates and min rates dynamically, optimizing pricing for different demand levels throughout the year. He also emphasized the use of occupancy adjustments and grouping properties.
Monique: Monique emphasized the importance of utilizing occupancy-based adjustments and seasonal pricing profiles. She suggested using aggressive adjustments for newer listings to fill calendars initially, then gradually adjusting based on actual occupancy. She also highlighted the value of seasonal profiles for fine-tuning pricing strategies.
4. Discounts To Boost Visibility
Q. How much should we utilize discount to boost property visibility?
Sarah emphasized the importance of a nuanced approach, considering various factors such as booking window, channel mix, and overall strategy. She suggests leveraging tools like the new home discount based on individual circumstances, highlighting the need for flexibility and a clear understanding of pricing parameters.
Fabio offered a pragmatic perspective, advocating for the strategic use of discounts to gain traction, especially for properties with larger inventory. He stresses the significance of proper yield management, particularly during peak times, and shares a creative approach of marking up discounts to mitigate their impact on revenue.
Sébastien addressed the challenge of reviving listings that have gone stale after extended stays, emphasizing the role of pricing adjustments. He discusses employing last-minute discounts, particularly on Airbnb, as a strategy to stimulate bookings and counteract stagnation in demand.
5. Navigating Setbacks
Q. What do you do when nothing seems to be working? How do you navigate setbacks?
All three speakers unanimously emphasized a comprehensive approach that includes analyzing market data, adjusting pricing strategies, optimizing listings, and maintaining proactive communication with guests and owners to address challenges effectively.
Sébastien emphasized conducting a comprehensive analysis to determine whether the issue is property-specific or broader. He suggests checking listing quality, addressing potential algorithmic impacts like bad reviews, and utilizing aggressive pricing strategies if necessary. He also highlights the importance of understanding market dynamics and adjusting pricing strategies accordingly.
Fabio underscored the need for a holistic approach beyond pricing, focusing on distribution strategy and listing optimization. He advised leveraging insights from market data and paying attention to booking lead times across different channels to maximize visibility and bookings.
Sarah emphasized the importance of strategy alignment with property goals and stakeholder tolerance for risk. She suggests adjusting pricing strategies based on booking windows and market insights, while also ensuring proactive communication with guests and owners to address any issues promptly.
Monique highlighted the value of portfolio analytics in PriceLabs and data-driven conversations with owners. She recommends utilizing market data to bridge the gap between pricing strategies and market trends, fostering transparency and alignment with property owners.
