Written by Jade Shojaee, Webinar by Heather Richer
Ask yourself the following:
- Would you pay $600 for a pair of shoes? What if they were Jimmy Choos?
- What’s the most you would pay for a tank of gas? At what cost per gallon would you decide to take the bus instead? Or is the convenience of having your car worth the extra expense?
- What about a family trip to Disney? Would you pay 20% more per ticket to go during peak season?
Price Elasticity is all about determining how much consumers are willing to pay for a product and how much a change in the price of that product will affect its demand and desirability.
- How are you forecasting the demand of your vacation rental?
- Do you know when your peak, shoulder and off seasons are and how much to adjust the price without losing any of the demand?
Hospitality industry veterans know to examine their RevPar (revenue per available room/rental) to determine whether their cost model is bringing in profit or loss. Sometimes lowering the price of a room can generate a huge increase in demand and other times demand will be so high even a significant rate increase is possible because there is more demand than rentals available to fill. That is called unconstrained demand.
Understanding these concepts and how to measure and forecast them is what revenue management is all about, and managing your revenue effectively is the most important thing you can do to ensure your bottom line!
RedAwning’s Chief Marketing Officer, Heather Richer brings her expertise in managing revenue for hotels and vacation rentals to RedAwning property managers in this webinar that will teach you how to forecast what your demand will be, determine how that forecast will impact your digital marketing strategies, how you can you run those digital marketing promotions on OTAs and how to determine the price elasticity of your properties.
Watch the webinar and start beating your competitors today. Knowledge is power!