The transition from managing a handful of properties to overseeing a large portfolio of 100+ listings is a monumental shift that demands more than just hard work—it requires a fundamental change in how you view data. As the short-term rental (STR) market becomes increasingly competitive, professional property managers must move away from “gut-feel” pricing and embrace a more analytical, data-driven approach to protect their assets and optimize large portfolio revenue management.
In a recent session of the RevLabs podcast, Joaquin Lozada, a Solutions Consultant at PriceLabs and a veteran of the Barcelona, Spain STR market, shared his framework for managing large-scale portfolios. From the importance of “protecting wealth” to the dangers of over-customization, this guide translates those expert insights into actionable strategies for your business.
1. Shift Your Mindset: Revenue Management as Wealth Protection
For large-scale operators, the primary customer isn’t just the guest; it is the property owner. When managing a large portfolio, your role evolves into that of a wealth manager.
- Protecting the Investment: People invest in real estate to secure their future, and property managers are responsible for safeguarding that investment.
- KPI Consistency: Owners expect managers to deliver results and increase Key Performance Indicators (KPIs) year over year.
- Market Outperformance: Vacation rental revenue management is essential for delivering strong results and protecting the value of a property investment.
2. The Danger of Over-Customization
One of the most common mistakes Joaquin observes in large portfolios is the “customization trap”.
- Complexity is the Enemy: Using numerous customizations without understanding their cumulative impact can lead to errors and hinder your pricing strategy.
- Rule Overlap: Applying different rules can cause settings to override one another, complicating the pricing strategy.
- The Minimalist Approach: It is generally better to start with fewer applications and adjust settings over time based on the listing performance.
3. Getting the “Base Price” Right
Your Base Price is the most critical starting point for your dynamic pricing strategy. It represents the average annual rate for your listing.
- Start Low, Build High: If you are unsure of how to position your property, start with a lower price point and increase it over time.
- Iterative Increases: Rates can be increased as your reviews and scores on online travel agencies (OTAs) improve over time.
- Benchmarking: Analyze your competitors using custom comp sets to establish competitive benchmarks and minimum prices.
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Large portfolio revenue management requires scalable tools. PriceLabs features are designed to help professional managers make data-driven decisions.
PriceLabs Portfolio Analytics
When you manage 100+ properties, you must move beyond individual calendars and utilize Portfolio Analytics to understand macro trends.
- Pacing Against Last Year: Comparing your properties’ performance against the previous year helps assess the effectiveness of your revenue management strategy.
- Pacing Against the Market: Managers should monitor how their portfolio is pacing against general market trends. This will help you understand whether the listing performance is based on the market trends or your pricing strategy needs some adjustments.
- Informed Decision Making: Monitoring these reports is essential for making informed pricing and strategy decisions.
PriceLabs Market Dashboards
To protect owner wealth, you must know precisely what the competition is doing. PriceLabs Market Dashboards provide real-time data on:
- Custom Comp Sets: Create customized sets to analyze specific market metrics relevant to your property type.
- Amenity Trends: Identify the most desired and common amenities among travelers in your specific region.
- Future Occupancy: Analyze future occupancy rates and demand trends for specific upcoming dates.
Dynamic Pricing Automation
The core of effective revenue management is adjusting rates in real time based on market conditions. PriceLabs Dynamic Pricing automates adjustments based on:
- Seasonality and Demand: Prices automatically adjust based on seasonal shifts and market demand.
- Local Competition: The algorithm considers competitor pricing to ensure you remain profitable while remaining competitive.
- Booking Windows: Pricing is adjusted based on lead time and booking horizon.
The Bottom Line
Scaling an STR business to 100+ listings requires a transition from property manager to revenue strategist. By focusing on a minimalist customization strategy, getting your base prices right, and using portfolio-level analytics to monitor pacing, you can ensure long-term sustainability and growth for your owners. As Joaquin emphasizes, the goal is to use data to identify where changes are needed and how to fix them efficiently.
Frequently Asked Questions
1. Why is pacing data so important for large portfolio revenue management?
Pacing data from Portfolio Analytics shows how your properties are performing relative to the market and last year’s data, which is crucial for making informed strategy shifts at scale.
2. What is the biggest mistake in setting up pricing software for large accounts?
The most common mistake is applying too many customizations without understanding their impact, which can lead to conflicting rules and unintended pricing results.
3. How do I know if my base price is positioned correctly?
You should compare your pricing against comparable rentals in your neighborhood using market data. If you are new to the market, starting low and increasing as you gain positive reviews is a proven strategy.