Updated: Apr 8, 2020
Maybe to get ahead of the wave, they have put out a new blog article that I have included below, as they try to look past the near term calamity in STRs. Perhaps this is more of an attempt to stop short term rental hosts from switching over to long term rentals, since the long term effect of the coronavirus is unknown, and unknowns make investors very nervous.
The pricing approach described below seems very similar to what is done now. The only difference is that the author is relying more on future predictions which they are claiming they can do better than you.
The housing market in San Diego is still critical, so there is an opportunity to move now and minimize losses.
AirDNA Announces New Forward-Looking Features to Track Market Recovery,Dillon DuBois | April 6, 2020
In today’s turbulent landscape, many vacation rental managers are finding themselves back at the drawing board.
In response to COVID-19, last year’s strategies are proving to be increasingly obsolete, and the only reliable way to stand out is by leveraging real-time, forward-looking data. The past can no longer predict the future.
AirDNA’s suite of products has often focused on revenue management and competitive intelligence — but we’ve now decided to add a set of powerful, future-centric features that take these game plans to a new level.
Wondering how many bookings are being made right now — and for when? Want to see the difference between your market’s average available rate versus the rate at which properties are actually getting booked? Is supply ramping up or tapering off?
If you’re looking to realign your strategies with the new reality of the vacation rental industry, explore our new features below. We’re confident that they’ll be extremely useful in navigating your short-term rental market during these uncertain times.
Pacing: A Whole New Way to Study the Future
This batch of new features from AirDNA is located in the new “Pacing” section located under MarketMinder’s “Price” tab.
3. RATE CALENDAR
In the context of the accommodations industry, pacing is the rate at which reservations are made for a particular date in the future. It’s essentially a way to monitor the number of bookings being made in order to spot patterns. Moreso, it also includes a time component to show how this year’s pace stacks up to previous years’ trends.
Seeing an uptick in recent reservations for a holiday weekend 4 months into the future? Now is your time to capitalize on increased demand. Pacing is a powerful forecasting tool that can be leveraged to gauge demand, revenue, and even expenses related to staffing and maintenance.
The first new feature within the pacing tab is the Rate Analysis chart. This chart displays the difference between the average available rate versus the average booked rate for 6 months into the future.
In most markets, the price at which hosts advertise their properties doesn’t perfectly line up with the price guests actually book. Reasons for this run the gamut. Many hosts price themselves out of the market, while others continuously sell themselves short. Knowing this discrepancy between booked and available rates is one of the easiest ways to stay ahead of the competition. In light of the current landscape, this chart sets out to provide answers to the following questions:
First, note the difference between the two lines for the first box on the week of July 13th. Many hosts still have their prices inflated from 4th of July weekend ($144), even though most places are getting booked at an average of $120. Listings are getting booked nearly 17% cheaper than they’re being advertised.
Second, we see the reverse trend for Labor Day weekend in early September. The average property is getting booked at $185, while hosts are advertising properties at only $149. That equates to over 24% in potentially missed revenue.
Cape Town, South Africa The Rate Analysis chart also allows users to include the booked rate from the previous year to provide some context to current data. Below is a snapshot of a chart showing only “Booked Rate” and “Booked Rate Previous Year.”
The story here is clear: ADRs are averaging over 40% higher in 2020 than they were in 2019. Especially as the Coronavirus continues to establish itself in markets around the world, this chart will be particularly useful in displaying how things are changing over time.
Booking Trends: A Real-Time Tool to Track Daily Reservations Until now, MarketMinder’s future data has allowed users to see occupancy, average rates, and demand for any date throughout the next 6 months. There hasn’t, however, been a way to track how that future data is currently changing. There hasn’t been a tool to answer the simple question of “Are people still booking travel?” Our new Booking Trends chart changes this. As of today, users can understand how future demand is evolving in real-time. Here’s how it looks:
Shown above is the number of bookings made in the last 7 days for any date in the future. The chart has two other lines — bookings in the last 30 days and last 60 days — which you can toggle on or off. Hovering over any date in the future will show the number of bookings made for that day broken down by the three-time frames.
Like the Rate Analysis chart, the scroll bar at the bottom of the graph is an interactive zoom bar. Below is a snapshot of the same chart zoomed into a month-long period to analyze bookings made for individual days.