INNOVATIVE

REVENUE Manager

One of the most important tasks of any Vacation Rental Company, and the job that makes a Property Manager more or less successful is Revenue Management.

Too often Property Managers are not operating Revenue Management properly, or they do, but with investing a significant amount of time, either way, they could significantly benefit from automating those procedures.

According to predefined rules, our Revenue Manager module dynamically adjusts Rates and Restrictions to increase revenue per property with less time investment.

CALCULATION

Revenue Manager is making regular calculation after which the software does three things:

Change rates and restrictions on all sales channels in accordance with the set rules and market trends

The Property Manager, i.e., the person who controls the booking, receives a report regarding excessive booking deviations

The Homeowner receives a report regarding the changes made (if preferred)

RATES SETUP

The Calculation for Dynamic Pricing is done according to predefined setup based on booking window, booking dynamic, and own and competitors realized rates.

Booking window – distance from the specific date is important when deciding the right decision regarding rates and restriction adjustment

Booking dynamic – own reservation received from the last calculation gives many insights regarding the right price at the moment

Realized rates – they are the facts, live information from the market regarding booked rates, and based on them, it is easier to do dynamic pricing

Besides entering Initial Rates, there are also Minimum Rates that need to be added. Those are the rates under which the Revenue Manager will not go. They can be different depending on the booking window, which allows you to dynamically lower Minimum Rates for available dates to keep them competitive.

RESTRICTIONS SETUP

Based on the minimum stay policy, you can make a setup that will in real-time release minimum stay, i.e., allow shorter stays regarding a booking window.

EXAMPLE

“Property Managers allow 1 night but only in the next 30 days, in the window 30-60 days from today minimum stay is 2 nights, and for the 60+ days from today minimum stay is 3 nights.”

This way, you will not receive 1-night reservations earlier than 30 days before check-in, and 2 days earlier than 60 days before check-in.

This allows you to extend your average stay per reservation, which means fewer operations which means less costs.

The setup can be different in regards to seasonality.

“For example in high season I will accept 1 night because of high prices and enough employees but in low season I don’t accept 1 night, or I will accept but I will add 30% price increase.”

REPORTS

Keeping the Property Manager less involved in calculations but with full control allows him to be sales supervisor and consultant and allows him to reach each property’s full potential with significantly less time investment.

In addition to acting on time with rates and restriction changes, Property Managers are also relieved of calls from the Homeowners as they are informed about Revenue Manager actions.

There are 4 types of reports in Booker Tools software:

Deviation report – send to the Property Manager to control deviations like:

too much availability in the next “x” days

too large deviation of prices from the competition

inability to edit the price due to homeowner restrictions

Optimization report – send on request to the Property Manager (ideal after the season) to make adjustments of initial rates & restrictions based on data and experience from the previous season

Statistical report – send to the Homeowners to inform them about property market status (if preferred according to your business model)

Homeowner report – send to Homeowners after the automatic rates and restrictions are made to keep Homeowners informed (if preferred according to your business model)

LOG OVERVIEW

Rate & Restriction Modifications can be done automatically by Revenue Manager module and manually by Property Manager and Homeowner (if preferred, and only current 30 days).

All changes are stored in the system and available for overview by the Property Manager and the Homeowner (if preferred) in chronological order who, when, how and what changed.

Besides having own rates & restrictions overview, there are also visible current competitors’ average realized nightly rates which beside helping in calculation of Revenue Manager rate changes, it also helps Property Manager in sales consultancy and to Homeowners (if preferred) to be informed about property market status.