![]() ![]() Unlike the hotel market, where a new hotel takes time to build, private individuals can put their homes on the market essentially overnight. However, supply in the private rental market is extremely dynamic. Ian: As property owners use the tool longer, they themselves get better at pricing. Hotels and airlines have already been optimized quite a bit, so pricing optimization with them typically leads to single figure increases, but individual Airbnb property owners were leaving a lot of money on the table during peak periods and sitting empty with overpriced units during periods of lower demand.ĭavid: Do you see the uptake from your pricing tools changing over time? The increase you can get in any pricing situation depends on how inefficient the market is to start with. ![]() Ian: It actually goes up to 50-55%, and that’ assuming the property already started out with basically normal prices. We are now approaching 350 global markets with over 50k listings using our pricing tools.ĭavid: You’ve published figures indicating that you can help customers increase revenue by 40%. That’s when we launched Beyond Pricing as a software-as-a-service, back in 2014. We soon decided that we should focus on the pricing aspect and leave the physical property management to others. My co-founder and I started offering full service product management for Airbnb rentals, and we saw that we could optimize prices in a way that led to 40% increases. Around 2013, we saw that about 20% of rentals were in the private vacation rental space, but pricing in this area was 20 years behind where it was for the hotel industry. I was with Oliver Wyman, which had the world’s largest airline pricing practice. Ian: I previously worked as a pricing specialist for hotels and airlines. Ian holds a bachelor’s degree from Princeton University.ĭavid: Can you tell us briefly about the history of Beyond Pricing? Prior to founding Beyond Pricing, Ian advised large airlines and hotels around the world on revenue management and pricing. More listers on Airbnb use Beyond Pricing than use Airbnb’s own pricing tool. His company, which is used by over 50,000 listings around the world (including Ian’s own vacation home in Santa Cruz, California), provides a dynamic pricing and revenue management software for vacation rental owners. Ian McHenry is the CEO of Beyond Pricing, which he co-founded in 2013. In this interview with Ian McHenry, we discuss pricing techniques that his company has developed to deal with these challenges. Although hotels and airlines have made progress over the past few years in techniques for pricing their perishable inventory, private rentals face the additional challenges of highly unique product and no discretionary stock for price experimentation. Links to the podcasts are included at the end of this page.įor the hundreds of thousands of individuals who rent out their rooms, apartments, and houses on Airbnb, it is extremely difficult to determine how to set rates that maximize revenue. ![]() This article summarizes our podcast interview, published in two parts on the feed at . An interview with Ian McHenry: CEO and co-founder of Beyond Pricing Looking for other software to increase revenue through data-driven automatic price generation? Have a look at our partner integrations.Pushing the envelope with pricing. Please see our other guide for transitioning from a direct connection to Hostaway. If you are already connected directly to Airbnb and/or Vrbo in Beyond Pricing, you will also want to deactivate any Beyond Pricing listings connected to those channels if Hostaway is pushing prices to those channels. If you are currently importing rates from other channels into Hostaway, make sure this is also disabled in the Channel Manager -> Rate Imports page seen here: Once linked, you will want to set your base prices and turn on to sync. Then simply enter your information to link your account. Once you have your token, you can log into Beyond Pricing and click on the "Link Another Account" button (shown below) or you can follow this link. Please be aware that once you create the token here, it will disappear when you leave the page, so make sure you take the API token down somewhere so you can access it later! More information can be found here. You will then need to create an API token in Hostaway and note your Account ID for the integration with Beyond Pricing. In order to connect your Hostaway account, you will first need to email BeyondPricing support at: them know that you would like to connect your Hostaway account and they will enable it for you!
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