Travelnest Drives 60% Higher Booking Value with Wheelhouse

Revenue Impact

• Booking Revenue Increase: 60% higher for properties using dynamic pricing
• Adoption Rate: 40% of Travelnest's customer base, so far, is now using dynamic pricing

Property owners in the vacation rental market face significant hurdles in optimizing their pricing strategies, often resulting in substantial lost revenue potential. The complexity of achieving optimal pricing stems from several key factors:

Without a clear strategy for evolving market trends, rates were often set too high or too low, leading to missed bookings or reduced revenue. This inconsistency arises from:

• Limited access to real-time market data
• Difficulty in interpreting complex market signals
• Lack of expertise in pricing strategy and revenue management
• Potential emotional attachment to properties, leading to overvaluation

Static pricing failed to adapt to shifts in demand, seasonal trends, and local events, leaving significant revenue on the table. This inflexibility is problematic because:

• Vacation rental markets are highly dynamic, with demand fluctuating based on seasons, local events, and broader economic factors
• Consumer behavior and booking patterns change rapidly, influenced by factors like last-minute travel trends and evolving preferences
• Competitors' pricing strategies can quickly impact the local market, requiring swift adjustments

Frequent rate changes require significant time and effort, making it difficult to maintain alongside other business operations. This challenge is exacerbated by:

• The need to monitor multiple listing sites and channels
• The complexity of adjusting prices for different stay durations and guest types
• The requirement to stay informed about local events and market conditions
• The risk of human error in manual updates, potentially leading to pricing mistakes

• Diverse property portfolios: Owners managing multiple properties struggle to optimize pricing across varied property types and locations.
• Balancing occupancy and revenue: Achieving the right balance between high occupancy rates and maximizing revenue per booking is a constant challenge.
• Lack of historical data: New property owners or those in emerging markets often lack the historical data to make informed pricing decisions.
• Competitive pressure: The increasing professionalization of the short-term rental market puts pressure on individual owners to match the sophistication of larger operators.

These multifaceted challenges made it exceptionally difficult for property owners to achieve reliable income and maximize their rental potential. The complexity of the market, combined with the limitations of manual pricing strategies, often resulted in lower financial performance and increased stress for property owners trying to navigate the competitive landscape of vacation rentals.

Travelnest partnered with Wheelhouse to implement a sophisticated and transparent dynamic pricing solution that revolutionized how their property owners approach pricing. This partnership leverages Wheelhouse's award-winning algorithms to offer:

• Real-time pricing suggestions based on analysis of over 10 billion data points daily
• Hybrid pricing strategy combining data-driven insights with customizable rules
• Flexible pricing boundaries with customizable rules including day of week, minimum and maximum price settings, gap nights and more.

• Automatic adjustments for high and low seasons, local events, and market shifts
• Dynamic minimum stay requirements that adapt to demand fluctuations
• Weekend pricing, seasonal pricing, and special event pricing capabilities

• Detailed performance analytics for understanding market trends and making informed decisions
• Customizable pricing strategies with multiple risk tolerance options (conservative, recommended, aggressive)
• Advanced factors like occupancy pacing and revenue pacing to optimize rates based on lead time

• Over 10 different pricing adjustments for precise control
• Ability to set custom rules for specific dates and create A/B tests based on unique portfolio segments
• Long-term discount and last-minute discount settings

• Eliminating guesswork from pricing decisions
• Increasing bookings and overall revenue
• Improving rental management efficiency
• Providing flexibility to balance data-driven and rule-based pricing approaches

By integrating Wheelhouse's dynamic pricing technology, Travelnest offers powerful Smart Pricing that adapts to individual property needs and market conditions, ultimately driving higher income and more consistent occupancy - at no extra cost - for vacation rental owners.

• Integration Timeline: Ongoing partnership
• Pricing Update Frequency: Every 24-48 hours
• Pricing Adoption: Auto-opting users resulting in higher returns and conversion

Revenue Impact

• Booking Revenue Increase: 60% higher for properties using dynamic pricing
• Adoption Rate: 40% of Travelnest's customer base, so far, is now using dynamic pricing

Seasonal Performance

• Peak Booking Month: January
• Peak Stay Periods: March-August
• Most Efficient Acquisition Period: May

Planned enhancements include:

• Advanced price anchoring to allow customers to leverage Travelnest's historical data.
• More sophisticated temporality modeling for even more advanced pricing recommendations.
• Expanded customization options to give customers all the control they want.

By leveraging Wheelhouse's dynamic pricing technology, Travelnest has transformed pricing from a challenge to a strategic advantage, delivering tangible value to property owners.

As a result, owners are experiencing increased occupancy rates, more consistent income, and the confidence that their pricing is always competitive. Wheelhouse's automated pricing boosts revenue and streamlines operations by eliminating manual adjustments, giving property owners more time to focus on their business.

With this powerful partnership, Travelnest helps owners unlock the full potential of their vacation rentals.

Disclaimer: Results may vary based on individual property characteristics and local market conditions.