About Us• The first and largest dynamic pricing software provider for Airbnbs
and vacation rentals• $1.5M in bookings priced per week• Powering pricing for 95% of “next-generation” property
managers and hospitality brands like Onefinestay, MyVRHost, Guesthop, Flatbook, and dozens of others
• 10 years experience helping the world’s largest airlines and hotels with dynamic pricing
• Previously managed 25 vacation rentals in San Francisco as Beyond Stays
@beyondpricing beyondpricing.com
Beyond Pricing
What is Dynamic Pricing?
Changing your price based on supply and demand
@beyondpricing beyondpricing.com
Beyond Pricing
As Demand Changes, So Do Prices
Pric
e
Rooms Booked
High Season
Low Season
$200
$150
@beyondpricing beyondpricing.com
Beyond Pricing
What Happens When You Don’t Vary Your Prices
Host #3
Host #2
Host #1
@beyondpricing beyondpricing.com
Beyond Pricing
!$100!!
!$120!!
!$140!!
!$160!!
!$180!!
!$200!!
!$220!!
!$240!!
Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15
What Happens When You Don’t Vary Your Prices
• Host #1 - $140/night – Chronic Under Pricer• She will be filled 95% of the time and excited about her high
occupancy• Host #2 - $180/night – Average Jane
• She is excited because she is filled from March-October and thinks winters are just “slow”
• Host #3 - $220/night – Occasional Olivia• Her calendar is usually open, except for big events which are
booked months in advance
@beyondpricing beyondpricing.com
Beyond Pricing
Hosts Are Losing Millions of Dollars by Using Flat-Pricing
$200
$100
$300
$400
Date
Single Nightly Rate
Optimized Rate
Lost revenue
Lost bookings
• Money left on the table during periods of high demand
• Units sitting empty during periods of low demand
@beyondpricing beyondpricing.com
Beyond Pricing
Dynamic Pricing Helps in 2 Ways
1. By lowering your price when demand is low, you can increase your occupancy
2. By increasing your price when demand is high, you can increase your average nightly rate
$200
$100
$300
$400
Date
Additional
$200
$100
$300
$400
Date
Higher Nightly
@beyondpricing beyondpricing.com
Beyond Pricing
1. Seasonality 2. Day of Week 3. Events
3 Biggest Factors Driving Demand
@beyondpricing beyondpricing.com
Beyond Pricing
Seasonality is Different in Every CityC
hang
e in
Dem
and
@beyondpricing beyondpricing.com
Beyond Pricing
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
Jan$15' Feb$15' Mar$15' Apr$15' May$15' Jun$15' Jul$15' Aug$15' Sep$15' Oct$15' Nov$15' Dec$15' Jan$16'
Miami' SF'
San'Diego' NYC'
Seasonality Also Differs in Neighborhoods of the Same City
Cha
nge
in D
eman
d
@beyondpricing beyondpricing.com
Beyond Pricing
!20%%
!15%%
!10%%
!5%%
0%%
5%%
10%%
15%%
20%%
25%%
30%%
Jan!15% Feb!15% Mar!15% Apr!15% May!15% Jun!15% Jul!15% Aug!15% Sep!15% Oct!15% Nov!15% Dec!15% Jan!16%
Lake%Tahoe:%King's%Beach%
Lake%Tahoe:%%Kirkwood%/%Sierra!at!Tahoe%
Seasonality Also Differs in Neighborhoods of the Same City
Cha
nge
in D
eman
d
@beyondpricing beyondpricing.com
Beyond Pricing
!10%%
!5%%
0%%
5%%
10%%
15%%
20%%
25%%
30%%
Jan!15% Feb!15%Mar!15% Apr!15% May!15% Jun!15% Jul!15% Aug!15% Sep!15% Oct!15% Nov!15% Dec!15% Jan!16%
San%Diego:%%Gaslamp%
San%Diego:%%Mission%Beach%
Cha
nge
in D
eman
dDay of Week Variations Are Different in
Every City
@beyondpricing beyondpricing.com
Beyond Pricing
!20%%
!15%%
!10%%
!5%%
0%%
5%%
10%%
15%%
20%%
25%%
Sun% Mon% Tue% Wed% Thu% Fri% Sat%
Madrid%SF%Mountain%View%
Events Can Have Big Impacts on Demand
@beyondpricing beyondpricing.com
Beyond Pricing
40%$
50%$
60%$
70%$
80%$
90%$
100%$
1/1/14$ 2/1/14$3/1/14$ 4/1/14$ 5/1/14$ 6/1/14$ 7/1/14$ 8/1/14$ 9/1/14$10/1/14$11/1/14$12/1/14$
JP M
organ
Health
care GDC
Cisco LIVE
Google I/O
Outsi
delands
Dreamforce
Oracle
Openworld
Amer
ican
Soc
iety
of H
emat
olog
y
Occ
upan
cy
Event Impact is Highly Local
VSEvent Location X
Hotel CenterX
@beyondpricing beyondpricing.com
Beyond Pricing
So What Happened with Pan Am Games?
@beyondpricing beyondpricing.com
Beyond Pricing
A: Too much extra supply, too little demand = low prices
Occup
ancy
CaribanaPan Am Games
How Beyond Pricing Works
We find the right average price for your place.
Then, we change that price based on supply and demand.
@beyondpricing beyondpricing.com
Beyond Pricing
Finding the Right Average Price for Your Place is Tough
Williamsburg Private Bedrooms Prices
Num
ber o
f Lis
tings
@beyondpricing beyondpricing.com
Beyond Pricing
0"
10"
20"
30"
40"
50"
60"
70"
<$40"
$40,50"
$50,60"
$60,70"
$70,80"
$80,90"
$90,100"
$100,110"
$110,120"
$120,130"
$130,140"
$140,150"
$150,160"
$160,170"
$170,180"
$180+"
Motel 6 Marriott Ritz?
Many Factors Contribute to How Much You Can Charge
• Amenities
• Number of Reviews
• Average Star Rating
• Quality of Pictures
• Number of Pictures
• Stainless Steel Appliances
• Location
• Response Time
• Airbnb Search Ranking
• Number of Bedrooms
• Number of Bathrooms
• Number of Beds
• Extra Guest Fee
• Cleaning Fee
• Instant Book
• Listing Title@beyondpricing
beyondpricing.com
Beyond Pricing
What Matters is How Quickly You Book Versus the Average
@beyondpricing beyondpricing.com
Beyond Pricing
We then vary your average nightly rate based on changes in demand
@beyondpricing beyondpricing.com
Beyond Pricing
$-
$50
$100
$150
$200
$250
$300
Jan$14' Feb$14' Mar$14' Apr$14' May$14' Jun$14' Jul$14' Aug$14' Sep$14' Oct$14' Nov$14' Dec$14'
Ritz Marriott Motel 6
It’s Important to Know How Far in Advance People Book
Perc
ent o
f Boo
king
s
Days Out @beyondpricing beyondpricing.com
Beyond Pricing
0%#
10%#
20%#
30%#
40%#
50%#
60%#
70%#
80%#
90%#
100%#
1# 31# 61# 91# 121# 151# 181# 211# 241# 271# 301# 331#
Two Implications of the Booking Curve
1. Tells You What Percent of Demand is Still Left Allows you to know whether and when to discount
2. Tells You Whether You’re Booking Up Too Quickly If you are, chances are you can increase your average nightly rate, or “Base Price”
@beyondpricing beyondpricing.com
Beyond Pricing