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Adjusting the Nightly Rates and Recommended Pricing for Guesty PriceOptimizer

Updated

Note:

If you make adjustments to pricing or minimum night restrictions in the Guesty For Hosts calendar they will sync with PriceOptimizer, appearing as a manual price in the pricing forecast graph.

Guesty PriceOptimizer is a data-driven, machine-learning tool that gives you recommendations for your listings' nightly rates based on different time period intervals. Our interactive software takes several details into account based on market trends to offer the best-suggested prices.

PriceOptimizer helps maximize revenue and occupancy while saving you time and minimizing manual mistakes, making it an ideal tool for your property management business. Suggested prices can be manually adjusted at any time based on your individual needs.

Follow the instructions below and read about the different ways you can adjust the pricing.

Step by step:

  1. Sign in to your Guesty for Hosts account.
  2. In the top right corner, click the diamond icon.
  3. Click PriceOptimizer.
  4. Click on the relevant listing.
  5. Select the relevant listing and edit the settings according to your needs. Make sure to click Apply x change(s) in the top right corner and select Apply again in the confirmation pop-up whenever a change is made.

Read all about the different manual change options PriceOptimizer has below.

Pricing forecast

The Pricing forecast graph shows the following data:

  • Actual pricing: Current pricing relying on the algorithm's suggestion, including strategy adjustments and changes that are made.
  • Recommended pricing: The initial algorithm suggestions before any of your own adjustments are made.
  • Market pricing: Orange line showing the pricing of similar listings in the market
  • Original pricing: Light blue line showing your rates before activating PriceOptimizer.

To display or remove the comparison data, click the tickboxes at the bottom of the graph.

When you hover over dates a pop-up appears as follows:

  • For the default trend showing "Actual pricing", the pop-up includes a breakdown of the price (base price, seasonality, day of week, etc):
  • When you are comparing more than one data trendline, the pop-up will display the values for these trends on a daily level as shown below:

In the Pricing forecast tab, you can adjust the nightly rate and the minimum/maximum rate limits.

Changing the nightly rate

If you want to override the recommended nightly rate, follow the line in the graph until you reach your preferred date. Click on the date and enter the new price or adjust the current price by dragging the price up or down.
If you want to override the rates for multiple days, highlight the days by dragging to the left or right of the selected date and input a new fixed price or adjust the price by percentage. You can manually override pricing for a maximum of 7 days at once. After a nightly rate is adjusted, a purple line will appear in the graph to highlight the manual price change.

Tip:

See instructions here to remove or reverse a manual override.

Changing the minimum/maximum rate limits

The minimum and maximum controllers define the highest and lowest price you can set for your listing. If you want to override the minimum or maximum limits generated for your listing, enter the new limit manually or drag the current limit to the new price you want in the chart. The green controller is for the minimum and red is for the maximum. The maximum price that can be applied is ten times the base price.

 

Note:

The option to change limits by the dragging feature within the chart is only available in the 1 year view and not in the 6 months, 1 month, or 1 week view.

Pricing strategy

Dynamic factors are parameters taken into account and applied to the base price to generate the recommended nightly rate. The dynamic factors we feature are days of the week, seasonality, and holidays. We compare your property with others that have similar attributes and make adjustments based on local market changes. In the Pricing strategy tab, you can adjust the listing's base price and determine the impact dynamic factors will have on your pricing. 

Important:

Whenever a change is made, make sure to click Apply x change(s) in the top right corner of your screen and select Apply again in the confirmation pop-up. Your changes will not be saved if you navigate away from the page without clicking Apply. 

Base price strategy

The base price is the starting point for your pricing. Choose PriceOptimizer's recommended pricing or control the pricing yourself in this section.

Base price settings

  • Select Automatic base price to see the recommended pricing from PriceOptimizer's algorithm. Keep the recommended pricing or take a more conservative approach (20% lower) or a more aggressive approach (20% higher).

  • Select Manual base price to set a fixed base price that remains constant regardless of market changes.

Price limits strategy

Stay within your desired pricing range by customizing your pricing with default minimum and maximum limits. Guesty PriceOptimizer’s algorithm will always stay within your default limits unless you add time-based rules for time periods like holidays, events, or seasons. For example, let's say your minimum price default is set at $800 and your maximum is $1300. However, you want to raise the default prices for the summer months. In this case, you can set a time-based rule and adjust the minimum and maximum pricing to apply to the months of May through October. The other months of the year will adhere to your default pricing.

Pricing impact settings

Save time by automatically impacting pricing based on market conditions, or increase control by impacting them manually with rules based on your experience for each of the following factors:

  • Day-of-week
  • Seasonal
  • Holiday

In the pricing strategy graph shown below, you will see a trendline for each of the above dynamic factors, representing the dynamic factor's impact: base price + contribution of the factor each day.

Select Automatic pricing impact to use the recommended pricing from PriceOptimizer's algorithm. Keep the recommended pricing or take a more conservative approach (20% lower) or a more aggressive approach (20% higher). 

Select Fine-tune pricing impact to fine-tune the algorithmic suggestions for specific days of the week, seasons, or holidays. The impact will be derived from each day's base price and added to the day/season/holiday impact calculations. 

For example, as illustrated in the gif below: 

  • Decrease the pricing impact on Mondays by 10%
  • Increase the pricing impact on Fridays by 20%
  • For all other days of the week, 0% = PriceOptimizer recommendations

Tip:

A list of holidays will be pre-selected based on the listing's country. To view the list of holidays, click Holiday then Fine-tune pricing impact.

Seasonal date range impact / Time-based rules

In addition to controlling the seasonality impact per month as shown above, you can also define rules for a date range, like an event or holiday period. The date range rules are more specific and will override the values that were set at the month level.

Minimum night rules

With Minimum right rules, you can set minimum stay requirements for reservations by day-of-week, time period, and upcoming availability. You can also maximize occupancy by automatically lowering the minimum night stays for gap periods smaller than the current minimum night requirement.

Last minute pricing

Last minute pricing allows you to review and customize the impact of last minute bookings on your pricing strategy. You have the option to select Automatic pricing impact or Fine-tune pricing impact as explained above under Pricing impact settings.

Demand pacing

Occupancy pricing rules allow you to fully control the impact pricing has based on occupancy relating to the number of days before check-in, giving you the flexibility to adjust nightly rates based on occupancy and lead time.

Local events

Instead of making manual adjustments for premium dates that are not recognized under holiday pricing strategies, you can create a local event rule that is reflected in your overall pricing strategy data.

Competitive benchmarking

Gain a better understanding of your listings' performance in comparison to direct competition with Guetsy PriceOptimizer's competitive benchmarking. You can build your own competition group by adding or updating listings and searching for more information on them.

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