✨ Maximize profit and minimize effort with Lodgify Dynamic Pricing! ✨

Use Lodgify Dynamic Pricing to dynamically optimize your nightly pricing

Experience the benefits of data-driven pricing with tailored nightly rates for your rentals using our all-in-one dynamic pricing solution. Stay competitive and maximize revenue effortlessly.

You can activate and deactivate the Lodgify Dynamic Pricing (formerly Smart Pricing) at any time.
⚠️ Important:

  • Activation will override your nightly prices with optimized pricing.
    However, as Lodgify cannot guarantee any specific results, you remain ultimately responsible for monitoring and managing your rates. You can manually override optimized pricing to better fit your needs.
  • Deactivation will instantly reset the optimized prices to your previously manually configured prices.
  • After activation, season rates will be unavailable.
    Season rates established while dynamic pricing is active won't apply upon deactivation of dynamic pricing, requiring their setup either before enabling dynamic pricing or after its deactivation.
  • If you have manual overrides in your calendar and you enable dynamic pricing, the overrides remain in the calendar. You will need to manually delete the override if you wish to see the recommended rate of dynamic pricing.

💡 Note: This feature is incompatible with the legacy room type functionality.

Read about:

How does the algorithm work

Lodgify's Dynamic Pricing algorithm takes several data-points into account to optimize your pricing, occupancy, and revenue. It looks at data such as market trends, seasonality, day of the week, demand, location, and lead time. Based on this, your nightly rates are automatically filled in, tailored to your specific rental.

The source of the data:
The nightly rate is derived from a process involving a network of interconnected models. The data comes from leading industry data partnerships and revenue management softwares. These collaborations form the foundation of the algorithm to generate well-informed nightly prices.

It also takes into account your historical booking data to learn from your rental’s past performance and make informed predictions about future rates. It’s also anchored by your base price, so our recommendations don’t deviate too far from your expectations.

The algorithm:
The algorithm takes into account over 40 listing attributes, market conditions, and local trends. Dynamic Pricing creates 18 months of nightly rates, offering a data-backed pricing strategy.

Seasonality considerations:
To adapt to market dynamics, travel trends are analyzed on a month-over-month basis. During low seasons, the algorithm adjusts prices by a specific percentage, while average rates are increased during high seasons.

Local demand projections:
In-house analytics are used to forecast local demand based on both local and national events. By identifying yearly recurring events and those occurring on specific dates, algorithms ensure that the average nightly rates proposed remain competitive and aligned with seasonal trends.

Demand and market trends:
The demand model, a crucial component of the algorithm, tracks overall demand for events based on the rental location. To gauge demand accurately, the algorithm is focused on a localized area determined by the latitude/longitude of the rental. The demand model assesses price and occupancy changes, to monitor how other property managers in the area adjust prices for high-demand events. These are not necessarily property managers using Lodgify, as we use third-party applications to get this data. This insight helps understand the convergence between supply and demand in each specific location.

See the following table for more details:

Question Answer
How does Dynamic Pricing differentiate between the types of rentals (e.g. cabin treehouse, chalet, etc ? Dynamic Pricing distinguishes between rental types by analyzing over 40 unique attributes of each property. Then we take a look at the market baseline rate, and adjustments are made to reflect the specific characteristics of each rental type.
🔎 For example, if the market baseline rate is $200, and apartments are typically priced 50% below this rate, Dynamic Pricing would calculate a $100 decrease in the base price for cabin listings.
How do you compare with my competitors? Lodgify creates an automated recommended Compset (competition set) in the background for each of your listings based on who is in your area and has similar listing attributes to you. This will be taken into consideration when recommending a price.

Activate seamless Dynamic Pricing

⚠️ Important: By activating Dynamic Pricing you will override your current nightly prices on Lodgify and all connected channels. Price per occupancy, Fees, Taxes, Promotions, and Add-ons will not be affected.

💡 Notes:

  • Dynamic Pricing can only be activated for completed rentals.
  • Lodgify's Dynamic Pricing feature cannot be used in combination with PriceLabs nor Beyond Pricing.
  • As long as Dynamic Pricing is active, the following settings will no longer be available:
    • Price per night
    • Length of stay prices
    • Price per weekday
    • Short stay price
  • The booking window will be capped at 365 days in the future.
  • We recommend that you make sure you set up your rentals with all the information, such as amenities, as it has an impact on the price calculated by Dynamic Pricing .

To activate Dynamic Pricing :

  1. Go to your Main Menu in the top left corner and select Settings.
  2. In the left navigation panel, click Lodgify Dynamic Pricing
    Screenshot 2024-02-20 at 15.54.13.png
  3. You will see a list of your completed rentals. Switch the toggle in the last column for each rental you want to use Dynamic Pricing for.
  4. A pop-up will appear informing you of the 0.8% Dynamic Pricing fee and which rates settings will become unavailable.
  5. Click Activate.
  6. You can now view your optimized nightly rates by clicking View prices. This will take you to your Calendar.
    Additionally, you can see the Average of the nightly rates that Dynamic Pricing has configured for your rental for the next month. This gives you a quick insight into whether the prices are within an acceptable range for you.

Custom pricing rules

Although the Dynamic Pricing feature provides data-driven optimized pricing, nobody knows your rental like you do. Once the optimal prices have been automatically configured, you can still make adjustments as needed:

Use... To...

Min-Max in the Dynamic Pricing settings


Screenshot 2024-02-20 at 15.58.43.png

Define the range within which the Dynamic Pricing feature can configure nightly prices to ensure that your rates never go above or below your desired values.

Click Define to set:

  • a Minimum price to ensure nights are not priced lower
  • a Maximum price to ensure nights are not priced higher
  • or both, to create a pricing range.

smart pricing threshold.png

💡 Note: It is recommended to set a minimum price, but no maximum price in order to capitalize on high-demand periods.

Minimum Stay in your Default rate

Configure the minimum number of nights a booking must meet.

Minimum Stay per Weekday in your Default rate Configure the minimum number of nights a booking must meet if it includes that day of the week.
Price per occupancy in your Default rate Configure an extra charge per guest per night.
Learn more about occupancy price.

Override nightly price and / or minimum stay

Nightly Override.png

To override a nightly price and / or minimum stay of specific nights, follow these steps:

  1. Go to your Main Menu in the top left corner and select Calendar.
  2. Select the Multi Unit calendar view.
  3. Find the rental whose rates you wish to change. Double-click on the box, or click on the box representing the start and end date of the period for which you wish to override the rate and/or minimum stay.
  4.  Select Edit nightly price.

Learn more about overriding your nightly settings.

Fees  

Short Stay Restriction.png

Add additional costs to your bookings, such as cleaning fees.

To add Fees to your rental:

  1. Go to your Main Menu in the top left corner and select Rentals.
  2. Select the rental that you want to create the fee for, and select Fees & Taxes
  3. Click Assign Fees to assign an existing fee or create a new fee.

💡 Note: Whilst the Short Stay Price cannot be configured, you can create a Fee and restrict it to only apply to bookings under a certain number of nights.

Learn more about Fees

 

Taxes

To configure your taxes according to your local guidelines and regulations:

  1. Go to your Main Menu in the top left corner and select Rentals.
  2. Select the rentals that you want to create the tax for and select Fees & Taxes
  3. Click Assign Local taxes to assign existing taxes or create new ones.

Learn more about Taxes.

Add-ons

To offer your guests the option to add special services such as breakfast into their bookings.

Learn more about Add-ons.

Promotions

Offer your guests special offers and discounts by creating Promotions.

  1. Go to your Main Menu in the top left corner and select Rentals.
  2. Select the rental that you want to create the promotion for and select Promotions & Add-ons.
  3. Click Assign a promotion to assign a existing promotion or create a new one.

Learn more about Promotions.

 

Deactivate Dynamic Pricing

When you deactivate the Dynamic Pricing feature, all settings that were overridden or blocked by Dynamic Pricing will be reset to the values you had configured before activation.

The tentative and confirmed reservations created with the Dynamic Pricing feature will retain their pricing, and will remain subject to the Dynamic Pricing Fee, as long as the quote remains unchanged.

To disable Dynamic Pricing:

  1. Go to your Main Menu in the top left corner and select Settings.
  2. In the left navigation panel, click Lodgify Dynamic Pricing
  3. Switch the toggle in the last column for each rental you want to deactivate Dynamic Pricing for.
    Screenshot 2024-02-20 at 15.58.43.png

Dynamic Pricing Fee

A Dynamic Pricing fee of 0.8% is due for each reservation booked with prices calculated by Lodgify's Dynamic Pricing feature. The fee remains due for these bookings, even if Dynamic Pricing has since been turned off or if the booking has been moved to the trash.

💡 Notes:

  • The Dynamic Pricing Fee applies regardless of your subscription plan.
  • The Dynamic Pricing Fee is not the same as the booking fee nor the transaction fee.

See the following table for more details about the conditions:

Question Answer
Which reservations are subject to the Dynamic Pricing Fee?
  • For direct bookings: All bookings received through your Lodgify booking engine as well as bookings that you add manually into Lodgify are subject to the Dynamic Pricing Fee as long as they have a Quote.
  • For OTA bookings: The Dynamic Pricing Fee is charged on bookings in your Lodgify Reservations section received via Airbnb Pro, Booking.com, Expedia, and VRBO, as well as any other additional channel we may add in the future to our channel manager.
    💡 Note: Any other booking that was manually imported at the time of initial connection, regardless of when it was imported, is not subject to the charge.

  • The Dynamic Pricing Fee will only be charged for bookings with the booking status Booked or Declined.
    💡 Note: Bookings with one of the above booking statuses will be charged even if they have been moved to the trash.

What is the chargeable amount? The chargeable amount is the Total Amount incl. Fees, Taxes, Promotions, and Add-ons for booked bookings. For canceled bookings, only the non-refundable portion of the Total Amount will be charged.

💡 Note: Any OTA commission is not deducted.

How is the Dynamic Pricing Fee calculated for a Booked reservation?

The Dynamic Pricing Fee is calculated by multiplying the Dynamic Pricing Fee percentage over the total amount the reservation had when it was created, including Promotions, Fees, Taxes, and Add-ons.

Example: Let's say you've subscribed to a Lodgify Starter plan with a 0.8% Dynamic Pricing Fee and receive a $100 booking from Booking.com with status Booked. The $100 cost of this booking is composed of a $90 room rate, $7 in cleaning fees, and $3 in taxes. In this case, the Dynamic Pricing Fee due would be $0.8 (=0.8% of $100).

How is the Dynamic Pricing Fee calculated for a Canceled reservation (Declined Status) 

For Canceled bookings with Declined Status, the Dynamic Pricing Fee is calculated by multiplying the Dynamic Pricing Fee percentage over the Total amount incl. Promotions, Fees, Taxes, and Addons minus the Cancellation Adjustment.

Example:  If a guest has already pre-paid $90, and you refund $30, then the Dynamic Pricing Fee is only due over the remaining $60. With a Dynamic Pricing Fee percentage of 0.8%, the Dynamic Pricing Fee due is $0.48.

When does a Dynamic Pricing Fee become due?

The Dynamic Pricing Fee becomes due 24h after the departure date for all chargeable bookings.

How will I be charged and billed?

The Dynamic Pricing Fee will be billed and charged on a monthly basis from the credit card used for your subscription payments. At the beginning of each month, you will be charged and invoiced for all Dynamic Pricing Fees that became chargeable during the previous month.

Example: For example, for June 2020, you would be invoiced and charged the Dynamic Pricing Fees in the first week of July 2020 for all chargeable bookings where the date of departure + 24 hours is within 01-06-2020 and 30-06-2020.

What happens if I cancel my subscription?

Any reservation entered in Lodgify meeting the criteria for the Dynamic Pricing Fee to be applied will be charged on a monthly basis based on the departure date until your contract expires.

Once your contract has expired, all outstanding bookings that have a departure date after the contract expiry date will become eligible to be charged immediately and will be billed on the first day of the following month.

🔎 Example: You cancel on the 8th of July, but your paythrough date is on the 17th of august.
You will be charged on the 1st of August for the checkouts of July, as usual.
On the 1st of September, you will be charged for all the checkouts until the 17th of August, plus all the future checkouts generated by bookings meeting the Dynamic Pricing Fee criteria.

What happens if I upgrade my subscription?

The Dynamic Pricing Fee applies regardless of which subscription plan you are on.

What should I do if my market is not available in Lodgify?
  1. If your market isn't covered, you can request it by clicking Request next to your rental. Your request will be added to our request list (you'll see a Pending status).
  2. We'll work on including your market and within 5 working days, you can expect to see it covered. You will be notified via email once your market is officially supported.

 


 

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