How Nightpricer helped the vacation rental success of a brand-new listing, grabbing $65k in just 4 months
Like many vacation rental success stories begin, a property owner took a job requiring a move to another state. The owners loved their home and really had no intention of selling, so thinking it would make a great vacation rental, began shopping local management companies.
In this case, the homeowners chose ABODEbucks, a professional vacation rental management company based in St. Louis, MO. With over seven years of experience managing 100+ properties, they hoped that ABODEbucks could properly care for their homes and guests while maximizing potential revenues.
The secret weapon
What the property owners did not realize initially is that their nightly rates would be managed by Nightpricer, an alternative nightly pricing solution that was already helping several other property owners achieve their revenue goals.
How does it work?
In a nutshell, Nightpricer was developed to save vacation rental managers time while maximizing property owner revenue. To achieve these goals, automation is used to fluctuate nightly prices based on booking frequencies. The only needed input is a starting price and an idea of which events/holidays should be priced higher. If operating in a seasonal market, you can also adjust peak, low, and mid seasons so the algorithms will adjust the pricing accordingly throughout the year.
For this particular property, ABODEbucks started with the median prices for 4BR properties they managed: $300 base price, $129 minimum price, and $550 event minimum. They also set base and minimum prices to increase/decrease every 7 days based on booking frequency and activated last-minute discounts for unbooked dates within 30 days.
Nightpricer’s “set it and forget it” approach is different than other dynamic pricing solutions because it continuously increases prices as long as bookings continue to roll in, and decreases prices if bookings slow down.
In essence, Nightpricer finds the market value of the individual property automatically. The app removes the guesswork leading to dramatic manual base price changes, that when guessed incorrectly can leave serious revenue on the table.
Vacation Rental Success
As you can see below, bookings for this property took off immediately and consistently for several weeks. Since new reservations continued rolling in for the first 15 weeks, the base and minimum prices also increased. On the 16th week, no new reservations were captured, so the base and minimum decreased slightly, reacting automatically to ensure rates are properly priced for the entire calendar.
But that’s not all…
Of course, base and min rates only tell part of the story. From there, Nightpricer’s algorithm, event pricing solution, and fire sale all do plenty of work in the background. These features adjust nightly pricing based on the demand and value of each day of the year Over the course of this property’s first four months, you can see that the average nightly rate (ANR) increased exponentially as well, ultimately leading to $65k in total revenue in just the first 16 months.
Ready to start nightpricing?
So that’s my story. We have been thrilled with our Nightpricer results, so we’ve decided to share it with the world. If you’re looking for the ultimate low-cost, hands-off nightly pricing solution, we might have just the thing for you.
As the first step of our launch, Guesty, Hostfully, and Hostaway PMS users can try Nightpricer free for one month, with more integrations coming soon.
Which PMS should we add next???
Let’s go nightpricing!
*originally posted 7/22/2021