In the area of short-term rental hosting, dynamic pricing is a strangely sensitive issue. Dynamic pricing is somewhat new in the STR game, despite its prevalence in the airline and retail industries. Hosts frequently express concern about losing control of their listing's nightly fee.
Dynamic pricing has been the subject of numerous myths and legends. We're here to dispel those myths and show you why it's the greatest option for your company.
Myth No. 1
It will raise my prices and turn off potential customers.True or false?
It's a common sentiment in STR groups and chat rooms. Hosts and property owners are concerned that dynamic pricing tools are programmed to raise prices in the name of "increased revenue," often scaring off all possible bookings.
We can't speak for other dynamic pricing technologies, but nothing could be further from the truth in the case of DPGO. We built our algorithms to use a plethora of data points to generate the best rate with the best chance of landing a booking. This amount will fluctuate based on the market conditions on any given day.
Myth No. 2
It will lower my prices and cause me to lose more money.True or false?
Again, hosts are concerned that dynamic pricing would drive down their costs, leaving them with almost no money at the end of the month. This is also wrong. Dynamic pricing tools analyze market patterns and only change prices to capitalize on those trends.
DPGO allows hosts to enter a minimum price amount, which aids in the establishment of a pricing framework within which our dynamic pricing engine can operate. By specifying a minimum price, you guarantee that we will never set your rates below that amount. Your minimum pricing ensures that you never have to honour a booking for less than your break-even point.
Myth No. 3
Dynamic Pricing Is IneffectiveTrue or false?
Dynamic pricing tools are extremely sophisticated pieces of software. They not only collect billions of data points, but they also evaluate that data in record time. Without the data that only smart pricing engines have access to, hosts would be entirely in the dark and unable to appropriately change their prices on a regular basis.
Markets are dynamic concepts that alter by the minute. If hosts wish to move toward optimum pricing, they must acknowledge this. Without the assistance of dynamic pricing service, hosts just lack the ability to precisely forecast what the market is doing at any given time.
Myth No. 4
It has the potential to increase revenue by up to 40%.True or false?
We can't speak for other dynamic pricing technologies, but in general, implementing dynamic pricing provides hosts with a significant increase in money generated by their STR site.
DPGO users often notice a 40 percent increase in revenue. That's an impressive figure by industry standards. It becomes even more astounding when you consider our pricing models. Our customers have the option of paying $1 per booked night or 0.5 percent of the automated booking total.
Myth No. 5
Constant Price Changes Deter Returning VisitorsTrue or false?
In the modern era, guests cannot expect pricing to remain constant year after year. In a 12-month period, inflation rates alter, currency exchange rates change, and the cost of living fluctuates dramatically. If your returning Airbnb guests always book the same weekend, just set a discount for that week on your DPGO dashboard and make sure your returning guests are ready to book! Alternatively, if your returning guests stay for more than a week or a month, you may use your DPGO dashboard to set up time-based discounts.
