What are the functions of Revenue Management companies?
Within the world of short-term property rentals, Revenue Managers are responsible for providing a service that optimizes property management by maximizing occupancy rates. This is achieved through automated systems that adjust the prices of each property based on different factors, such as the season of the year, local events that attract visitors and market demand.
Revenue management is carried out by specialized companies that carry out the dynamic adjustment of prices and all the necessary functions to meet the demands of owners and managers of temporary rental properties who aspire to efficient, fast and automated management.
The clients of Revenue Management companies are, therefore, people who manage the temporary rental of their properties on their own or administrators who manage the rental of several properties that belong to other people. For these clients, having the services of a Revenue Management company such as ListingOK guarantees an increase in their income. With us, you are guaranteed an increase of your income up to more than 20%!
How is dynamic price adjustment carried out?
In order to carry out dynamic price adjustment, Revenue Management companies have Revenue Management Systems, RMS for short, softwares that consist of a cloud platform that monitors in real time all the variables that affect the optimal formation of prices and availability. of each property.
These monitored variables are:
- The current occupancy of temporary rental properties that are located in the area where the apartment you are working with is located.
- The prices of the properties that have been rented up to that point in that geographical area.
- The prices at which temporary rentals of similar properties in the area are offered at all times of the year.
This daily monitoring allows us to predict demand and occupancy for each area and for each moment. Thanks to the processing with Azure Machine Learning of the large amount of data collected daily, you can build models, make projections, react quickly to make informed decisions and take advantage of market opportunities to ensure that the rates for each property are always competitive and the most profitable as possible.
Another piece of information that is reviewed daily is the visibility of each particular property within Online Travel Agencies (OTAs), where travelers go to search for properties to book for a short period of time (such as Airbnb, Booking, Expedia Group, Despegar and Trip Group). The location within the OTA search results is another factor that revenue managers take into account to establish the pricing strategy for each property.
To have an even more complete notion of it scope, we invite you to read What is Revenue Management?
