CASE STUDY: Dynamic Pricing

The Challenge

A medium-sized property manager with between 50-75 luxury beachfront properties grappled with pricing issues. Their reliance on an outdated, manual system resulted in static rates, and their past endeavors with dynamic pricing led to a decrease in bookings. The manager was in search of a strategy that could modernize its pricing to improve both occupancy and revenue.

The Solution

To tackle the challenge head-on, Hygge Hospitality Partners recommended a dynamic pricing strategy that utilized two tech platforms: PriceLabs for dynamic pricing and KeyData for market insights. With PriceLabs, the manager started with base rates that resembled their current pricing, ensuring a seamless transition. Benchmarking against the market with KeyData revealed the manager's competitive position. 

Leveraging these insights, pricing adjustments were made, reflecting both market demand and the inherent value of individual properties. To remain agile in the face of market fluctuations the manager tracked weekly KPIs, seasonal adjustments and local events.

The Results

The clients’ pricing was transitioned to dynamic rates, adjusted on a daily basis in line with changes in market demand. The new pricing returned higher overall revenue, specifically featuring higher holiday rates, a 50% increase in revenue during off-season periods, and higher occupancy year-round. The transformation took just two months, and we armed the client with a Standard Operating Procedure (SOP) to guide and model their future adjustments and processes for pricing.