In the previous articles we've shown you how you can set up discounts, vouchers and special offers to make prices of your rooms more attractive. In this article we will show you how you can increase your prices if the demand is high so that you can drive even more money.
What is progressive pricing?
Progressive pricing is a feature that allows you to increase prices for certain room categories if the demand is high. I.e. the more beds in particular room category are booked, the higher the price gets.
Let's have an example
We have 24 beds in a Good Vibes Dorm.
A default price is 20 EUR.
We decide that if one bed is booked the price rises 1%. That means a second person that books a bed will pay 20,20 EUR for a day instead of 20 EUR.
If we decide that if 2 beds are booked, i.e. 22 beds are left, the prices increases 2% it means that a price for room will be 20,40 EUR (102% x 20 EUR)
So if we have a couple that books beds in a Good Vibes Dorm for 4 days, they will pay 81,60 EUR.
How did we calculate it?
A couple booking beds means out of 24 beds we will have 22 beds free, so a threshold of +2% will apply. We add 2% to the base price, so 102% from 20 EUR is 20.40 EUR.
A price for 4 days is 4 x 20,40 EUR which equals 81,60 EUR.
How do you set a progressive pricing?
Step 1 Go to Menu bar, click on Manage and choose Rooms
You will see a list of rooms that you have created.
Step 2 Click next to a room for which you want to set progressive pricing.
Step 3 Click on Pricing
You will see the following:
Step 4 Tick
Step 5 Click
You will see beds that belong to a particular room category (in our example we have Good Vibes Dorm - we have created 4 rooms, with 6 beds each) and well as a field where you specify how much a price will rise if there is x beds left.
Step 6 Click a number of beds left and how much a price will rise
In our example:
We have decided that if there are only 20 beds left (i.e. 4 beds have been booked), the price for a room will rise 10%.
Step 7 Click
In the next article we will explain you what is Guests Pricing.