Patrik M Strebel owns a 2 bedroom property in Puerto Vallarta. He recently started using PriceLabs‘ and his revenue increase from using PriceLabs‘ Airbnb dynamic pricing tool can pay for the software for the next few years. See the video below to see what he had to say about PriceLabs.
Tell us about your properties?
I wish it were properties with an “S.” It’s one property that we’re currently managing out of beautiful Puerto Vallarta in Mexico, on the West Coast Pacific. It’s a unique property because it is right on the water, and thus, it’s a preferred location. So the occupancy is high. It’s booked about 220 days out of the year. The remaining days, my wife and I enjoy the place. We bought it three years ago and have been renting it on Airbnb ever since. We’re also on VRBO, but the majority of bookings happen through Airbnb.
Where do you work?
I’m managing a partner ecosystem for a super cool offering from the DXC called autonomous driving, self-driving cars. It requires a lot of partners and leading-edge technology selling into the OEM and tier-one industry.
How did you manage rates before PriceLabs?
It was a bit of a guesswork, right? I mean, it’s a finger in the air, especially when you start brand new. I looked at all the properties in the neighborhoods, but, in general, it was a flat rate, maybe a peak over the holidays. I increased the rates by 20% or 30% for holidays, but it was pretty much a flat rate throughout the year. Not many adjustments. So, I’m sure I left money on the table.
How did you discover our platform?
Well, was one of those Airbnb group. I can’t recall the name of the group, but there is a guy out there who helps Airbnb hosts to optimize their offering, attract more people. And someone asked a question, is there any Airbnb dynamic pricing tool available? And sure enough, you showed up at the top. And I figured, hey, let’s give it a shot, try it one month. And I’m super happy!
Has PriceLabs helped?
We had flat rates for most of the time, and your tool allowed me to adjust that pricing to market demand and supply (Dynamic Pricing). My first five bookings that I had seen since I started in early January all came in at a much higher price than what I would have had. So I think the next ten years of subscriptions for PriceLabs are already paid for!
It is very interesting to me that you daily adjust the price. I mean, you must have data that I would never have access to. I saw that some of your price recommendations were significantly higher than what I would have in my flat rate. Then I said, what the heck? I let it go. And so far, the experience has been great!
If you get $40 a night higher than what you have, and you have a guest who books for eight nights, that PriceLabs has paid for itself multi-times over!
Any advice for other owners or managers?
Take the plunge, figure it out, use dynamic pricing. It’ll pay back as long as you guys don’t increase how much you charge. I enjoyed the webinars. Also, the support responsiveness and the quality of the support