How we fill your property’s occupancy through dynamic pricing?

img Adiel Ananda | November 25, 2022

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.

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?

Dynamic pricing is a strategy where businesses adjust the prices of their offerings to account for changing demand, which use flexible instead the fixed price. The goal is to get the right price, at the right time.

How we analyse your property in order to decide the pricing strategy.

The Revenue Management team at Bukit Vista monitors your property performance frequently and utilizes dynamic pricing as a strategy to have your property occupied. Each property is assigned to a pricing specialist and follows an inspection schedule on a weekly basis. Have you ever wondered how we analyze your property and arrive to specific pricing strategies to improve your property’s performance? Let’s find out more!

All the different kinds of data we use to analyse your property and make strategical pricing decisions

Revenue
Money generated from room sales, calculated on a monthly basis. This is what we aim to optimize for each property.
Occupancy
How much of the property’s available rooms were sold during a period of time. We measure this monthly and in percentage amount.
Availability
How much more nights is still open and can be booked in the current calendar. Ideally, we want a property that is flexible on availability.
ADR
The Average Daily Rate is the average rental revenue earned for an occupied room per day. The ADR measures the success of the property’s operating performance.
Booking Window
The time between a customer booking a room and that customer checking in at the property for their stay.
Runway
The number of calendar days left between the current date and the next targeted date, for example a gap night that would like to be optimized.
RevPAR
Revenue generated per available room is an indication of the property’s revenue generating performance.
Competitors’ pricing
one property could be in higher demand compared to others, and as revenue management specialists, we must stay aware of other competitors’ pricing strategy.
Length of Stay
Most common duration of stay booked by guests. This helps us decide if we want to opt for a length of stay discount strategy, if we see that a certain LoS is booked more frequently than others.
Booking pace
The rate at which reservations are made, which is measured daily. And the gap between one booking received to another. The higher the rank of a property in OTAs, the higher the booking pace should be.
Review & Ratings
Collected from guests who rate and leave messages on their stay experience. A higher review score means higher hospitality from the property, which then prompts us to raise prices in order to match its value, and vice versa.

What are the pricing strategies we could opt for

In Dynamic Pricing, there are different pricing strategies we could adopt. Most of the time, we like to do pricing experiments to test out certain strategies and monitor the success rates. One of the most extreme strategy would be changes in the base price, which could either go higher or lower depending on your property’s performance. There are also gap nights and nearly expired dates, which most likely will trigger a price drop to attract last minute bookers. In more stable times, we could also just play around with the discounts setting and adjust things like weekly, monthly, length of stay, early bird, and last minute discounts.
 
How partners can contribute towards our successes?
 
In order to achieve greater successes, the support of our partners is also crucial to the Revenue Management team. We need your help to:
  • 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
  • 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.
I hope you’ve found this article useful and gives you a better idea of what we do in dynamic pricing. As existing partners, if you have any questions related to your property, feel free to reach out. For newcomers, if you have a stunning property and are interested in our property management services, feel free to contact a representative of our Bukit Vista team. We provide free consultation and revenue projections.
See you in the next post!

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