Demand Factor Sensitivity
Our price recommendations depend on many factors, but for easier understanding, you can classify them into three buckets:
- Broad trends: these are things that don't change drastically from one stay date to the next: base price, seasonality, etc.
- Daily demand trends: these are things that can change quite a bit from one stay date to the next based on how much more demand we're seeing for a certain stay date compared to another - these fluctuations could be because of holidays, events, day of week fluctuations, etc. Altogether, we show them as "Demand Factor" when you hover over a date on the calendar.
- Lead time-based trends: these change the price depending on how far out a stay date is: some examples include last-minute discounts, far-out premiums, etc.
Many of our users understand and have used seasonal pricing (broad trends) before using dynamic pricing but might be new to daily demand-based trends. Our algorithm is pretty adept at understanding how much to raise prices for different dates within a season, but we also have a couple of ways for you to fine-tune how much variation you want in your prices for big holidays and events.
Demand Factor Sensitivity
To access this setting, click "Edit" on the Customizations > Advanced Customizations, and toggle the switch for Demand Factor Sensitivity.
The available options are as follows:
- Recommended: Our pricing algorithm uses the recommended setting by default. For some holidays and events, you might book a bit closer in (but at a higher rate) rather than getting booked far out (at a potentially lower price)!
- Low: The conservative setting is useful to users who think the daily fluctuations are too much and that some event prices are going much higher than they're comfortable with. This is also useful if you prefer taking bookings farther out for peace of mind.
- High: The aggressive setting is useful for users who want their holiday and event rates to be even higher than what our default algorithm comes up with. This is useful for customers who have a higher risk tolerance and are willing to wait out a bit before they get booked for major holidays or events.
- No demand factor: This option turns off the demand factor we apply in our algorithm.
The image below shows an example of how the conservative and aggressive settings might change your price recommendations:
Customize Hotel Weights
PriceLabs pre-determines the weights given to hotel like properties (we get this data from booking.com) while pricing for your listing. Depending on the market you are in, the prices of hotels around you, and how they correlate with short-term rentals in your area, we determine if hotel needs to considered in your pricing.
The Hotel Weights customization lets you control the weight or contribution we give to hotel like properties in while pricing for your listings. This would be beneficial mostly for hotels or hotel-like properties. Below are some tips -
- Mostly STR - 10% hotel weight, applied by default and if you're not sure, we suggest using this weight instead
- Mostly Hotel - 90% hotel weight, we suggest using this for Hotels
- Fully Hotel - 100% hotel weight
- Fully STR - 0% hotel weight
- Balance - 50% hotel weight, we suggest using this for Apart-Hotels
Customize Hotel Compsets
Following up on above section, PriceLabs Default considers 10 nearest hotels to price for your property if applicable (To re-iterate from above section, depending on the data trends from both short-term rental and hotels, we decide if hotels should be used in pricing and how much weight they should be given).
If you are a hotel-like property, this customization allows you to select the data source of hotels that we look into for pricing. To use your own selection, then you can identify the hotels to include from the Hotel Data tab.
Important things to keep in mind -
- Make sure you have at least 5 hotels in the compset
- For child listing, if "Selected in Hotel Data" option is selected, the selections used in Parent's listing hotel data tab will be used, otherwise we'll use default hotels for child listing.
- The hotel prices used will be for length of stay = 2, and the hotel prices are Best Available Rates for double occupancy
The Hotel Weights and Hotel Compsets customizations are a by-request feature, however, if you select "Multi-Units" in the Smart Presets, it will automatically be enabled for your account.
Please email us at email@example.com
to enable this customization for your account if you cannot see it already.
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Adjacent Factor Customization
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