With bookings in Florida taking a hit from the pandemic again right now, we take another look at the RevMax dynamic pricing system with this guide for homeowners.
Have you signed up to use our dynamic pricing service yet? If not, this blog is for you. It explains how dynamic pricing works and why it can help you maximise returns on your vacation home.
The counter-intuitive profitability
Let’s be clear from the outset: we have to acknowledge that it seems unlikely that by reducing the amount of revenue you get per night for your home, you can actually make more money from it.
However, that’s the starting principle on which RevMax works: by agreeing to be more flexible on the rates you achieve, you can boost your occupancy rates. Since the discounts per night are relatively small, the increase in occupancy rates more than offsets them.
In fact, in practice, RevMax is a bit more complicated than this.
That’s because on some nights – especially during peak season or busy periods – you can earn more per night for your home than you would at your standard nightly rate. And that’s what makes RevMax so clever: it identifies the trends in the market and adjusts your per-night rate accordingly to ensure you achieve top dollar whilst also boosting occupancy rates.
Why do we need such sophisticated tools?
Your vacation home is great. It’s unique to you. No doubt, you’ve enjoyed many wonderful family holidays there. And you’re totally committed to making sure your guests have the same great Orlando experience.
We get it. Unfortunately, so do the big theme park hotels. And the big tour operators. And they’re doing everything they can to win those bookings instead.
To do that, they have the latest tools and technologies at their disposal. And they act fast: adjusting rates so that they dominate quiet markets and achieve premium pricing during peak periods.
In fact, they are using similar technology to RevMax. They have their own advanced algorithms. That’s why some of the biggest hotels dramatically and suddenly dropped their rates two weeks ago – because they saw the market slowing.
That’s what we’re up against. And that’s why last year we started working with RevMax to implement dynamic pricing for you.
RevMax is already delivering great returns for some owners
Most of you will know that we’ve been working with the RevMax dynamic pricing system over the last difficult year. Some of you may already be benefiting from it.
The beauty of RevMax dynamic pricing is that it uses advanced algorithms to assess the state of the market and then prices your per-night rental rates accordingly. This means that your house is always marketed at a competitive rate, based on current market conditions. The main benefit to this is that you’ll see a big uptick in your occupancy rate – and, consequently, the overall revenue your home generates.
The main requirement is that you need to be really clear about the lowest per-night rate you will accept and what promotional tools (like free nights for certain bookings) you’d be willing to employ.
It’s only by having all this information upfront and programmed into RevMax that we can act as fast as the big hotels.
We’ve already seen some great results. It’s hard to comprehend that some of our owners have been able to increase revenues during this difficult period – but that has been our experience with dynamic pricing.
As we progress with the system, we’re continually refining and developing what we’re doing to try to maximise revenues for you, our homeowners, whilst also delivering the very best experience for your guests.
Could you benefit from introducing dynamic pricing?
If you’re not yet using RevMax dynamic pricing but you think you might like to, please get in touch with our team.
There is no additional charge for using the RevMax service. It’s a cost we are absorbing for the benefit of our homeowners. It’s completely up to you whether you want to use it.
Our advice? The key to getting the most from RevMax is to have a deep think and be really honest with yourself – and us – about what you want your home to achieve.
Our team will work with you whatever you decide. Our goal is to help you achieve your goals.
If you have any questions about this, please reach out to us.
If you aren’t yet using RevMax, but you’d like to start using it, then please drop me an email as soon as you can at the usual email address: firstname.lastname@example.org