Welcome to Boostly Podcast Season 11 Episode 118. This is a recap of my Facebook live where I talked about how a Surge in pricing is annoying everyone.
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Timestamp
00:00 Start
02:20 Free pricing tools
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Transcript from the Episode
I have been reading the blogs, and I've been looking at the Twitter, I've been looking at the social media and the news. And there's one thing that is becoming apparent is that the people are not liking the sudden rise in prices to stay, or hospitality, accommodation. And my message is to all of you is, we don't care.
There have been many, many, many, many people that have been able to earn lots and lots and lots of money in direct bookings, and not having to rely on the otas. In 2020, one of the worst years recorded for the world of hospitality. It was affected like every other industry, but it was massively affected people couldn't open, people who were allowed to open were heavily restricted, and lots and lots of potential revenue were lost.
And now, what has happened over the last year, is that hosts around the world have finally, for one chance they've had it's been able to use that break to reassess their business, look at the systems, look at the structure, look at the channels, look at the market. And so hosts now have finally got a website, for example, hosts have finally now gone to a PMS and they've got multi-channel. And they're finally been able to do proper research into the pricing dynamic tools that hotels, airlines, Amazon, and all of the like have been able to use and what hosts are starting to realize now and hopefully you're one of them is that the power of these dynamic pricing software tools such as Wheelhouse, Price labs. And for the first time ever, hosts are able to not have to just make up prices on the spot, they can use the data that is presented with them. And when there is a surge in demand, instead of just having your set rate for the whole of the year, the price will automatically go up because the more in demand, then hosts should be and they are entitled to charge more.
Free pricing tools
These pricing tools, a lot of them are free, a lot of them are very pro reasonably priced, are able to give you the host a chance to recoup any lost revenue from 2020. So when you see blogs complaining about prices, or when you see funny memes or gifs are being put up and you feel bad, don't be strong with your pricing be strong with what you're offering. If you've got your niche nailed down, you know exactly who your avatar is, your ideal guest is, and you are confident that your product can sit at that price point, your property, your rooms, your whatever it may be, and stick to it because you deserve it.
Now, it doesn't mean that those prices are going to stay like that, this is the beauty of these dynamic pricing software tools is that when the demand isn't there, they will drop down to a more regular route, but you are entitled you are deserving, you should feel like you need to be able to set these prices and be strong and confident with them because people will pay it.
So this is my little message, my little rant to anybody out there who was fuming or annoyed about the price of a potential vacation this year. Because if you're not going to pay it, somebody else will. And you know it's something that hosts need to be able to do to be able to sustain their business not only survive but thrive on the other end. So I'm all for it. And I always say you got to be confident with your pricing and stick to it doesn't matter what you do for a business.
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