In our last post, we went over some of the successes and challenges of revenue management in the apartment rental business. We came up with a number of elements that we believe need to be applied to take revenue management to the next level.
It is no news that the vacation rental business has exploded worldwide thanks to the sharing economy. With the industry generating billions and billions of revenue per year, providers for related services have popped up like mushrooms. To be able to separate the wheat from the chaff we have composed a number of basic principles that apply to revenue management for vacation rental business or apartments.
Continuously rethinking revenue management, I have come to the point where I wanted to build a revenue management and pricing solution myself. One of the crucial elements was the recommended pricing. Together with two revenue management teams and technology specialists, we have established a significant list of elements that we wanted to incorporate when it comes down to how we decided on any price for any given day.
The list of elements keeps on expanding and it seems never ending, as we add new elements on a regular basis.
So, if you are thinking of adding new elements in the way you decide on your price strategy, here’s a bunch of ideas to play with.