Barcelona: Channel management solution Rentals United has partnered with San Francisco-based Wheelhouse, a revenue and growth management company which helps property managers and owners determine the perfect revenue strategy by providing real-time, automated pricing recommendations and market intelligence.
As the travel industry starts to slowly recover from Covid-19, having a solid pricing strategy will be crucial to outrun the competition.
In the current climate, pricing can be challenging as the market can shift dramatically from day to day. Wheelhouse has found that the average daily rate [ADR] across most markets have remained relatively static through 2020 as depicted in the graphs below, though it is higher in some destination markets than in previous years.
Occupancy rates are significantly lower than last year, but some markets are showing slow recovery for the autumn season. Compared to leisure destinations, however, metropolitan markets are showing the slowest rates of recovery.
Wheelhouse’s data presumes that domestic travellers should be property managers’ core focus through the fall. While near-city markets are in higher demand, they are yielding moderately higher rates in the short term.
With international travel still uncertain and travel restrictions confusing, Wheelhouse’s recommendation engine suggests that property managers’ best approach is to maintain a data-backed, automated pricing strategy to ride through these times.
With a global footprint in over 500 markets, Wheelhouse recommendations are built on historical booking performance, real-time market activity, seasonality trends, and local demand.
Wheelhouse updates prices each night to earn up to 30 per cent higher revenues.
The Rentals United and Wheelhouse partnership aims to give property managers automatic syncing, customisable strategies and 24/7 live customer support.
The channel manager said it strongly believes in providing its clients with a “robust and comprehensive set of services” that complement its distribution services.
CEO James Burrows said: “Now more than ever, the pricing strategy for vacation rentals is essential as the market is finicky and dynamic. Having a yield manager partner is critical to not just surviving the current crisis but in creating business success during this time.”
Wheelhouse founder and CEO, Andrew Kitchell, said: “We are thrilled to partner with Rentals United, and to bring our growing pricing and financial intelligence suite to Rentals United’s professional operators. In pairing our platforms together, we look forward to helping accommodations providers increase revenues 25 per cent +, and emerge from Covid with ever- stronger businesses.”
The partnership follows hot on the heels of Rentals United announcing Doug Truitt as its new head of revenue success.
This week, the company also announced a partnership with flexible housing marketplace Anyplace, one which they claim is “an industry first” for the mid- and long-term stay marketplace.