Today, we hear from Jules Renaud, one of the Co-Founders and CEO of Air Rental, a french property management company based in Montpellier. Air Rental uses PriceLabs with BookingSync to distribute dynamic prices and min-stay to all their channels for their 170+ listings. Who at Air Rental is in charge of configuring PriceLabs? It’s me, Jules Renaud, Manager of Air Rental, who did the initial setup of PriceLabs. Then Yuri Attali took over the project to set the conditions (customizations) better. Can you describe how you managed your pricing before using PriceLabs? Before using PriceLabs, we had about 25 listings to manage, and we were only on Airbnb. Every day we took care to reduce or increase the prices of the listings one by one. It took us a lot of time. And we missed a lot of bookings because we did not know all the events that were happening in the city. We were only in Montpellier at the time, so it would have been more complicated in the new cities that we did not know much about. What were the reasons and goals you set for using a dynamic pricing tool? Our goals were multiple:
- Save time on time-consuming pricing work (more than 4 hours saved each week)
- No longer miss events in the city, being at the right price
- Ability to decrease or increase our rates automatically to obtain more bookings.
We work with freelancers whom we call “Keeper.” This community needs to have the fully occupied calendars (as much as possible). This allows them to have more work and to continue working with us. How did you find the PriceLabs configuration? It was easy to connect PriceLabs with BookingSync (our PMS). It is effortless to use even for someone who does not know about Yield Management. PriceLabs price recommendations are based directly on our accommodations’ base price, and we can choose the minimum price. From there, it calculates rates instantly, for each day of the week, according to different factors. It takes a little more time to master PriceLabs customizations. But once implemented, they significantly increase the profitability of the listings: the low-booked rentals pricing gradually decreases over time to be more booked. Thanks to PriceLabs, we have an occupancy rate of over 90% now. What features of PriceLabs do you enjoy most? As said before, the customization features are vital for us to offer the one-night min-stay at the last minute to have a high occupancy rate. It is the same for bookings in the future, which can increase the number of minimum nights of these stays and gradually increase the average length of stays. Finally, it is appreciable to be able to gradually lower prices to be more attractive on rentals that have trouble renting. Comparing with your price management before PriceLabs, what benefits did you get? Do you have concrete results to share with us? Yes, we have seen our profitability increase by more than 15% thanks to PriceLabs. A real use case was the rooms of our hostel in Montpellier. This hostel has six bedrooms, so it is an affordable accommodation for smaller budgets (BackPacker). The owner was stunned to see the increased rates in high season. “This bedroom will not rent at that price!” he had told us. After our feedback with PriceLabs, I reassured him to trust the tool. He was super happy to see that PriceLabs was right; he would never have had such a substantial benefit without PriceLabs. And to tell the truth, we did not either if we had managed these prices by ourselves.