Customer type: Revenue Management Services Provider
Region: USA / Global
Products: Dynamic Pricing, Portfolio Analytics, Market Dashboards
Client type: Property managers with 20+ listings
Richer Logic provides commercial and revenue management leadership services for short-term vacation rental, lodging, tech, and hospitality companies. Their seasoned team, led by Heather Richer and Dwight Yang, brings holistic resources to companies that lack in-house teams or expertise. Their specialties include revenue management, analytics, budget alignment, team development & training, and marketing.
Detailed below is how Richer Logic uses PriceLabs to provide best-in-class Revenue Management, Pricing, and Market Intelligence to help their customers;
- Automate and scale their business for long-term success
- Customize & configure settings as per their requirements and comfort
- Facilitate leadership discussions and decision making with accurate market data
Richer Logic focuses especially on short-term and vacation rental companies. Their customer base ranges from companies with 20+ properties operating in urban and traditional vacation rental markets around the globe.
Notable companies that utilize Richer Logic’s expertise and PriceLabs’ platform are BNB Me, Your Pad, Simple Life, and Nomad, among others.
Richer Logic’s client YourPad Vacation Rentals, was already enjoying an average of 20% more revenue per night compared to competitive units in their market. Richer Logic’s professional revenue management services, combined with PriceLabs Dynamic Pricing, Portfolio Analytics, and Market Dashboard tools, propelled this number to 60% more revenue per night.
Customers are offered different service levels based on their requirements, from simple training or coaching to full-support revenue management. Owing to Richer Logic’s background in revenue management for hotels, casinos, resorts, restaurants, and of course, short-term rentals, corporate apartments, and vacation rentals, the team brings perspective and custom-fit expertise to each portfolio.
Challenge 1: Providing revenue management services with the right combination of affordable, accurate, data-driven technology for pricing
One of the biggest pain points that Richer Logic customers seek support with is – pricing and revenue management. They struggle with gathering accurate data and intelligence to forecast and set pricing.
Customers come to them with the inherent need to find an affordable, automated, scalable pricing and revenue management solution. that ensures accuracy and long-term profitability.
Customers approach Richer Logic at different stages of their pricing strategy when they have been;
- Managing pricing manually without a defined revenue management process
- Operating with a revenue management process that is laborious and inaccurate
- Sub-optimally using dynamic pricing software or another service
Providing pricing and revenue management purely as a service is expensive and hard to scale. At the same time, for a customer to optimally use a software or technology would require expertise starting with configuration, customization, evaluation and strategy based on insight and data.
Richer Logic provides a combination of leadership services in combination with the right tech stack. On one hand Richer Logic provides strategy, experience, and commercial excellence, while on the other it, utilizes PriceLabs technology for data, automation, and intelligence; creating a win-win offering for its customer base.
Their service is typically offered through a 90-day onboarding process split into three stages.
- DISCOVERY:The information gathering and assessment stage where they work with the customer to understand the current forecast, what they want to achieve and what hurdles impede their growth.
- DEFINITION: Development of tools, systems and business processes development and assessment of ROI of a Revenue Management System (RMS).
- EXECUTION: Configuring the system, training customers to become ‘super-users’ of their chosen RMS and PMS, and putting the right reporting tools in place.
Solution: Combination of Richer Logic services and PriceLabs Dynamic Pricing and data-intelligence tools
With PriceLabs Dynamic Pricing, Richer Logic helps its customers;
- Configure the software by first importing listings and connecting to their Channel Manager or PMS
- Save time by grouping similar listings together by city, neighborhood, type of listing, etc. thereby applying customizations in bulk for groups of listings
- Analyze baseline pricing using current and historical data of their unit in relation to location, bedrooms, amenities, ratings, and market class
- Customize settings to enable automation, event triggers, alerts, and market intelligence to optimize forecasting
- Maximize rates and drive bookings to gap nights during compression events such as holidays, sporting or business events, and other local demand drivers
- Configure discount pricing rules that encourage both early bookings and last-minute deals.
PriceLabs Portfolio Analytics allows Richer Logic spot actionable trends in their client bookings by;
- Comparing and benchmarking against a particular client’s historical trends and relevant local market performance data
- Reviewing and analyzing occupancy and rate performance for a specific portfolio by season, event, and day-of-week trends
- Determining opportunities to increase revenue for future periods by driving occupancy, rate, or both
- Defining and applying varying premiums for unit attributes during high and low-demand periods
- Offering downloadable reports for easy referencing and business presentations
PriceLabs Market Dashboards provide Richer Logic with market insights and analysis for any region in the world, helping their customers;
- Understand market data and intelligence that are not available via other dynamic pricing tools that they may be using
- Conduct a price/value exercise versus their chosen competitive set to guide ideal positioning
- Study and identify popular amenities to add to their listing or optimize their description
- Analyze relevant changes in competing destinations that may affect their local market
- Set minimum stays depending on marketing preferences and seasonal patterns
- Hold rates appropriate for the surge in demand and position units to sell later, rather than earlier, compared to your competitive set, and vice versa during low demand