![]() Take your spreadsheet and sort by competitors. They even throw in hotels for good measure. Our data supplier, Transparent, puts it into a simple spreadsheet for us. At Buoy we use data from Airbnb, Expedia,, and Trip Advisor. Let’s make our own algorithm, starting with that first instinct: “I just want to track a few rentals in my area, price competitively, and change rates when the booking pace changes.” Where do I track competitors?Įverywhere you can. They are intrinsically restrictive and tough to use. Wouldn’t a truly dynamic system have done that for me?īase rates are born of a time when robust market data was scarce or nonexistent. When Covid onset the following year, I had to drop rates by hand to match market conditions. We received reservations, and I was perplexed as to how the base rate’s demand predictors missed a big event so badly. Once, when managing listings in Louisville, I had to inflate my rate 5x to match my comps during the Kentucky Derby. Unfortunately, the same characteristic makes them inflexible around peak dates and sluggish amidst abrupt market changes. Their great strength is their ability to work independent of market inputs. Base rate models layer five or six rules on top of a number you set, then use it to generate rates for your whole calendar. Set a rate, let the system push the rate up on weekdays, down on weekends, up in peak months, down in off-peak, way up on New Year’s Eve, way down just after ski season ends, etc. ![]() Let’s Talk About Base Ratesīase rates are simple enough. This post will show you how we translated those instincts into an algorithm. Those first vague inklings you had when you made your first listing can actually become a fully automated, truly dynamic rate setting algorithm. ![]() Faced with a blank calendar, you probably thought to yourself “I just want to track a few rentals in my area, price competitively, and change rates when the booking pace changes.” It doesn’t seem complicated, but pretty much everyone in the industry still uses a base rate algorithm or just prices by hand. Think back to the first listing you created. This is a guest post by Tim Speicher, Co-Founder at Buoy, a revenue management and reporting tool for vacation rentals and boutique hotels.
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