At 10 Stars, we’ve perfected vacation rental pricing so our homeowners can make the most out of their investment. Our proprietary dynamic pricing technology—combined with the expertise of regionally focused revenue analysts—has enabled us to consistently deliver higher profits for vacation homeowners and reinvest in the tech that drives their success.
Demand isn’t always consistent, so why should pricing be?
Like an airline adjusting ticket prices, our dynamic pricing system uses machine learning to monitor rates throughout the day and respond to changes in demand. It knows when to command peak pricing—say, for a holiday weekend or a popular event—and when to adjust for softening demand in order to keep the bookings coming. This method of dynamic pricing relies on advanced algorithms that factor in millions of data points to set the right price at the right time.
But we don’t leave it all up to machine learning. We pair our industry-leading technology with regionally focused analysts, so you benefit from the best of both worlds. Your dedicated regional analyst monitors your home’s performance and fine-tunes the algorithm for optimal impact. This one-two punch of technology and human expertise helps us deliver vacation homeowners around the world the best return on investment—especially during more volatile times.
We don’t just look at what’s happening in the moment to set rates—instead, we look at the big picture. We analyze how far out guests are currently booking in your market, then compare that to historic trends and your local competition.
Sometimes, optimizing your revenue means making adjustments to encourage guests to book closer to their vacation. This can sound counterintuitive to seasoned hosts, but the impact could mean a huge shift to your bottom line.
Imagine for a minute that your bookings are retail products. Early bookings for peak season are a bit like discounted items at a Black Friday sale. Your bookings may fly off the shelves, but your product is selling at a subpar price point. By waiting for the availability of homes to shrink, and decreasing your booking window alongside it, we’re able to hold out for the optimum rate and drive more revenue for your home.
Long term success starts with your first bookings. To help you build a strong foundation, we craft your listing using eye-catching copy and images to meet major booking sites’ extensive criteria.
But we also need to show early bookings to demonstrate guests’ interest in your home. Our system can help entice last-minute reservations by gently lowering rates on upcoming available days. So, while you may notice lower rates when your home first goes live with 10 Stars property management LLC, this strategy of promoting last-minute bookings is key to helping us capture those first guests (and reviews) early on.
As your home’s listing ranks higher on booking sites and your number of positive reviews increases, we are able to attract guests at a peak market rate. More reviews lead to more bookings, improving your conversion score and, as a result, your ranking and ability to command higher prices, too. It creates a positive feedback loop—and we call that a win-win.
Pro tip: Avoid setting minimum rates that limit dynamic pricing and block your ability to maximize booking activity.
We understand variable rates can be intimidating if you’ve never used them. But our data shows that the best way to deliver more revenue is to dynamically adjust your nightly price.
Here’s a common example of what we mean: if we see most people booking three-day weekends (checking in on Thursday and checking out on Sunday), we may drop the nightly rate on Wednesday to encourage guests to book four nights instead of three. Over the long term, this kind of strategic pricing adds up, and, in turn, can put your home in a stronger position when peak season hits.
We’re always fine-tuning our pricing system to work harder (and smarter) for you. Recently, we’ve started giving each itinerary—from check-in date to check-out date—its own unique price based on the length of the stay and demand patterns for the time of year.
Itinerary-based pricing helps fill your calendar more effectively and reduces the overall number of “stranded” nights between bookings. For instance, it leverages lower rates to help fill nights that might normally go unbooked, like an open Monday and Tuesday between two existing reservations.
We’ve activated itinerary-based pricing at many 10 Stars property management LLC, and now use it to price hundreds of millions of itineraries every day. And we’re already working on the next iteration of dynamic pricing to help optimize your income further.
Our dynamic pricing technology is designed to help you win higher annual revenue. We might not advertise the highest rate every night—but we charge the smartest rate to get you the best return overall.
We’ve seen the incredible benefits of turning a three-night stay into a five-night stay, or raising occupancy by an extra 5% during the off-season. It really adds up over time—especially as your review count increases.
We recently found that owners saw a 10% increase in gross rent in their second year working with 10 Stars property management LLC.* On average, this meant an additional $2,400 in earnings per year. The increase was primarily driven by a lift in occupancy combined with a modest increase in rates (an $8/night increase, on average). So strategic short-term plays can mean long-term value.
We’re confident we can earn you more money with our dynamic pricing system. If you have any questions, reach out to your local contact for further info.
Want to learn how 10 Stars property management LLC brought dynamic pricing to the vacation rental industry? Read more >
Our rates are based on a number of variables, including seasonal weather patterns, holidays, location-specific events, competitor pricing, demand elasticity for your home, occupancy rates, booking window trends, current sales and promotions, regional demand trends, proximity to local landmarks, seasonal demand curves, changes in demand, and much more.
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