Attention STR Owners: The Game Has Changed - Stay Competitive with Consistent Pricing

Hey fellow STR owners,

As you know, the short-term rental market is constantly evolving, and staying ahead of the curve is crucial for our success. I want to bring your attention to a significant shift in how guests are booking their stays. Tools like cozycozy.com are changing the landscape by allowing guests to compare prices across multiple booking platforms, giving them the edge in finding the best deals.

This means we need to be more strategic than ever with our pricing.

Guests Have the Upper Hand

Platforms like cozycozy.com aggregate prices from various online travel agencies (OTAs) such as Airbnb, VRBO, and Booking.com.

This means a potential guest can quickly see if your property is listed at different prices across these platforms. If they find a lower price on one site, they’re likely to book there, potentially undermining your revenue from other platforms.

Why Consistent Pricing Matters

Trust and Transparency:

Inconsistent pricing across platforms can confuse guests and erode trust. Guests might question why the same property is priced differently on different sites, which can lead to lost bookings.

Avoiding Double Bookings:

Price discrepancies can lead to double bookings if guests book the lower-priced listing on one platform while the higher-priced listing remains available elsewhere. Keeping prices consistent helps prevent this issue.

Enhanced Visibility:

OTAs often prioritise listings that are competitively and consistently priced. By maintaining uniform pricing, you increase your chances of being featured prominently in search results.

Simplified Management:

Managing a single pricing strategy across multiple platforms is simpler and more efficient. It allows you to track performance more accurately and make informed adjustments.

Leveraging Pricing Discrepancies to Your Advantage

While consistency is key, strategic pricing discrepancies can actually work to your benefit:

Prioritise Platforms with Better Insurance Coverage:

You might choose to list your property at a slightly lower rate on platforms that offer superior insurance coverage. This not only protects your property but also attracts guests who value security.

Boost Reviews on Key Platforms:

If a particular OTA requires more reviews for better rankings or visibility, consider offering a lower rate there. This can help you accumulate reviews faster, boosting your listing’s credibility and visibility in the long term.

Enhance Exposure to Socials:

Platforms that offer better exposure to your property’s social media links or additional marketing features can be prioritized with lower rates. This can drive traffic to your social media, enhancing your overall brand presence.

Steps to Ensure Effective Pricing Strategy

Use Dynamic Pricing Tools:

Leverage dynamic pricing tools that integrate with multiple OTAs. These tools can automatically adjust your rates based on real-time data, ensuring you remain competitive across all platforms.

Regular Monitoring:

Regularly check how your property is listed on different platforms. Make sure your rates are synchronised and reflect current market conditions.

Understand the Competition:

Use price aggregation insights to benchmark your property against similar listings. This helps you stay competitive and attract more bookings.

Communicate Unique Value:

Highlight unique features and benefits of your property that justify your pricing. Guests are not always looking for the cheapest option; they seek value.

The Bottom Line

The advent of price aggregation tools means guests are savvier than ever in finding the best deals. As STR owners, we must adapt by ensuring our pricing is consistent across all platforms.

This not only helps in capturing more bookings but also builds trust with potential guests and simplifies our management processes.

At the same time, strategic pricing discrepancies can help us leverage platform-specific advantages to boost reviews, enhance insurance coverage, and increase exposure.

Stay competitive, keep your pricing aligned where it counts, and let’s continue to thrive in this dynamic market.

Best,

Clint