Hi partners! Allow me to introduce myself. My name is Jessica, a Business Analyst and Revenue Management Specialist at Bukit Vista. I’ve done analysis and optimization for over 100 times, bringing in 100+ millions of additional revenue value through dynamic pricing. Other than that, I studied at César Ritz Colleges Switzerland & Washington State University in hospitality business management.
Some of you may know me already, as I often communicate with partners about your property’s pricing and performance. I am writing this blog for all of you, as an introduction to what the Dynamic Pricing team does daily. Through my blogs, I would love to answer all your key questions and provide better understanding.
What is Dynamic Pricing Management?
Why we use a dynamic pricing strategy?
Optimized Revenue: Dynamic pricing allows the company to adjust rental rates in real-time based on various factors such as demand, seasonality, local events, and market trends. This optimization leads to higher revenues by charging higher prices during periods of high demand and adjusting prices during low-demand periods to attract more guests.
Competitive Edge: Dynamic pricing enables the company to stay competitive by adjusting its rates to match or outperform competitors’ pricing. This helps attract more bookings and maintain a steady stream of occupancy.
Maximized Occupancy: By offering lower prices during off-peak times, the company can increase occupancy rates and minimize the number of vacant properties. This maximizes the overall revenue potential of the rental portfolio.
Real-Time Adaptability: Dynamic pricing allows the company to adapt quickly to changing market conditions, such as sudden spikes in demand due to special events or unforeseen circumstances. This agility helps capture additional revenue opportunities.
Data-Driven Insights: Implementing a dynamic pricing strategy involves analyzing data from various sources, such as historical booking patterns, competitor rates, and local events. This process provides valuable insights that can inform pricing decisions and marketing strategies.
How we analyze your property in order to decide the best pricing strategy?
1. Set lower price for the first month of launching
2. Adjust price with flexibility
3. Lower price on nearly expired dates
4. Increasing prices when the booking pace is too fast
This is because the property is considered high demand and has the potential for higher pricing.
5. Adjust price according to length of stay
6. Leave the rest of it to Bukit Vista
All the different kinds of data we use to analyze your property and make strategical pricing decisions
What are the pricing strategies we could settle on
How partners can contribute towards our successes?
- Keep your calendar open to increase availability
- Trust Bukit Vista to optimize your property through dynamic pricing
- Enhance our team’s visibility towards your property’s operational cost to understand our price boundaries better
Previous property performance
- Property X
One of our guesthouse properties located in Canggu, previously only allocated 5 rooms for Bukit Vista to manage, up to August 2022. Early in September, they decided to pause the partnership due to some internal ownership issues. When they chose to resume back in early October, and gave us a full 10 rooms allocation, they know they made the best decision because their booking pace went up quickly and their revenue doubled in that month itself.
- Property Y
One of our long-term partner property in Padang-Padang, have been performing really well until now. This guesthouse with 6 unique rooms can generate a consisteng 8K dollars a month, for 4 months consecutively. Despite an off season in November, their performance is still well above market standards.
- Property Z
This is revenue from a 3-bedroom villa in Ungasan. Their performance has been going up steadily since July up to now. Their nightly rates are also increasing as we monitor better performance in this property overtime. This is a result of the owner fully trusting Bukit Vista to manage their property.