Demand Factor Sensitivity

Demand Factor Sensitivity

Our price recommendations depend on multiple factors, but they can be broadly categorized into three key areas:
  1. Broad Trends: Factors that remain relatively stable across different stay dates, such as base price and seasonality.
  2. Daily Demand Trends: Factors that fluctuate significantly based on demand variations for specific dates, including holidays, events, and day-of-week patterns. This is reflected as "Demand Factor" when hovering over a date on the calendar.
  3. Lead Time-Based Trends: Adjustments based on how far in advance a stay date is, such as last-minute discounts or far-out premiums.
Many users are familiar with seasonal pricing (broad trends) before using dynamic pricing but may be new to daily demand-based trends. While our algorithm optimizes pricing for different dates within a season, we provide customization options to fine-tune pricing for holidays and events.

Before you start

Please note that some parts of this customization are by request.

  1. Hotel Weights and Hotel Compsets are by-request features. 
  2. If you don’t see these options in your account, email support@pricelabs.co to request access.

Benefits of the Demand Factor Sensitivity

This setting allows you to control how much variation you want in your prices for major holidays and events.

Available Options:

  1. No Demand Factor: Disables demand-based adjustments in pricing.
  2. Conservative: Reduces fluctuations, ensuring prices don’t spike too high for events. Ideal for users who prefer steady pricing and earlier bookings.
  3. Moderately Conservative: Reduces fluctuations slightly more than the Recommended setting but allows for some responsiveness to demand.
  4. Recommended (Default): Balances pricing by potentially securing bookings closer to the stay date at a higher rate rather than far out at a lower price.
  5. Moderately Aggressive: Increases pricing slightly more than the Recommended setting while still securing some earlier bookings.
  6. Aggressive: Increases pricing for holidays/events beyond the default. Suitable for users willing to wait longer for bookings at higher rates.

Steps:

  1. Head over to the Pricing Dashboard and click Review Prices on the listing.
  2. Go to Customizations (Edit) → All Customizations.
  3. Click Demand Factor Sensitivity.
  4. Turn on the toggle.
  5. Select your preferred option.

Hotel Weights

PriceLabs pre-determines how much influence hotel pricing (from Booking.com data) has on your listing’s prices. This customization allows you to adjust that influence based on your property type.

Available Options:

  1. Mostly STR (Default – 10%): Best for traditional short-term rentals.
  2. Mostly Hotel (90%): Recommended for properties that operate like hotels.
  3. Fully Hotel (100%): Best for fully hotel-like properties.
  4. Fully STR (0%): Removes hotel price influence completely.
  5. Balance (50%): Suggested for apart-hotels.

Steps:

  1. Under Demand Factor Sensitivity.

  2. Select your preferred option under Customize Hotel Weights.

Hotel Compsets

By default, PriceLabs considers the 10 nearest hotels when factoring hotel pricing into your listing’s rates. This customization allows hotel-like properties to select specific hotels for comparison.

Important Considerations:

  1. If the hotels you have selected in your compset don't have enough pricing data available across the calendar, PriceLabs will automatically supplement your compset with additional hotels to ensure demand factors remain accurate and consistent. The additional hotels are selected based on:
    1. Proximity: nearest hotels to your listing
    2. Your Base Price Help filters: if you've applied star rating filters in the Base Price Help tool, those same filters will be used to match comparable hotels.
  2. The hotel prices used are based on a length of stay of 2 nights and Best Available Rates for double occupancy.

Available Options:

  1. PriceLabs default: Considers 10 nearest hotels to price for your property if applicable
  2. Selected in Hotel Data: Uses hotels that you selected in the Hotel Data. To update the selected hotels, please see: Listing Hotel Data

Steps:

  1. Under Demand Factor Sensitivity.
  2. Select your preferred option under Customize Hotel Compsets.