How a 20% Occupancy Boost in the First Month Convinced The Blue Kite to Use PriceLabs

Executive Summary

The Blue Kite, a property management company based in Goa, India, transformed its pricing and operational efficiency using PriceLabs’ dynamic pricing tool. By integrating PriceLabs into their system, The Blue Kite achieved significant growth in occupancy rates and streamlined their pricing strategy, leading to better management and enhanced guest experiences. This case study explores the journey of The Blue Kite, detailing their challenges, the implementation of PriceLabs, and the resulting benefits. Insights and advice for other property managers considering dynamic pricing solutions are also provided.

Company Background

The Blue Kite was founded in late 2019 by Caroline Mulliez, who identified a need for homeowners in Goa to effectively manage and generate revenue from their properties. The company started with 10-15 properties and has since expanded to manage around 220 properties, with a presence in Northern India as well. The Blue Kite aims to provide a high-value proposition to homeowners while maintaining guest standards and handling maintenance and operations.

Caroline Mulliez (CEO, The Blue Kite) and Heeta Patel (Revenue Head, The Blue Kite) share their journey with PriceLabs and advice for property managers

Challenges Before PriceLabs

Before integrating PriceLabs, The Blue Kite faced several challenges:

• Manual Rate Management: Rates had to be manually inserted for each day of the year across various platforms, leading to inefficiencies and errors.
• No Centralized System: Initially, rates and availability had to be manually adjusted on each platform, causing conflicting information and booking issues.
• Dynamic Market: Determining the right price for various nights was complex and time-consuming.
• Occupancy Issues: Determining optimal pricing to balance occupancy and revenue was difficult, often leading to either underselling or not filling the properties.

Caroline explains, “We had to manually insert the rate for every day of the year and figure out ourselves what rate should we put. It was really manual and complex.”

PriceLabs as a Solution

Caroline discovered PriceLabs through their Property Management System, Smoobu. Attracted by the free trial and the potential for automation, she decided to test PriceLabs with one property. Caroline and Heeta find the Portfolio Occupancy Based Adjustments and Groups features helpful in managing a large portfolio. The tool’s dynamic pricing and the ability to manage rates across multiple channels provided immediate benefits, including:

• Automated Pricing Adjustments: PriceLabs automated the rate adjustment process, allowing real-time updates across multiple channels. This also reduced manual input and errors.
• Market Insights: The tool provided data on occupancy trends and competitor pricing, helping The Blue Kite set competitive rates based on market demand.
• Customizable Strategies: Available customizations allowed for targeted pricing strategies based on property type and market conditions.
• Integration: PriceLabs seamlessly integrated with Blue Guide’s existing CMS and their channel manager, simplifying the transition.

Chart showing listing occupancy compared to the market

Implementation and Results

The integration of PriceLabs into The Blue Kite’s system was smooth, with strong support from PriceLabs’ team during the API development. Caroline and her team quickly noticed improvements:

• Increased Occupancy: Initial tests showed a 20% increase in occupancy rate.
• Time Efficiency: The automation freed up time for the team to focus on strategic tasks rather than manual updates.
• Revenue Growth: By dynamically adjusting prices based on market demand, The Blue Kite saw better overall performance for their listings.

“I consider this as a partnership. We felt really well supported in the transition. It was not just me running everything, there’s a base and I’m just adding on top of it.”
– Carlone Mulliez, CEO, The Blue Kite

Advice to Other Property Managers

Caroline and Heeta Patel (Revenue Head, The Blue Kite), offer the following advice for property managers considering dynamic pricing solutions:

1. Embrace Technology: Utilize tools like PriceLabs to automate and streamline pricing processes. This frees up time for strategic tasks and improves overall efficiency.
   Caroline notes, “I’d rather have two or three people work with PriceLabs with fulfilling jobs, rather than have an army of people just filling data manually.”
2. Trial and Learn: Start with a trial to understand the tool’s impact on a small scale before full implementation. Use the insights gained to optimize broader usage.
3. Focus on Guest Satisfaction: Ensure your service promises are consistently met. Good technology aids in providing a seamless guest experience, which is crucial for retention and word-of-mouth marketing.
4. Market Understanding: Use market data provided by tools like PriceLabs to make informed decisions, especially when expanding into new territories.
   “To be able to see what other properties have done is key to expanding into new territories,” says Caroline.

Final Thoughts

“Using PriceLabs has allowed us to move from manual, error-prone processes to a streamlined system that enhances productivity. It has freed up our time to focus on strategic growth and improving the overall guest experience. The tool’s features, like the multi-calendar and market insights, are incredibly valuable in managing a large portfolio.”
– Heeta Patel, Revenue Head, The Blue Kite