Profit Loss Starts with Bad Data. Here’s How to Fix It
Summary
Bad data is a silent killer of STR profitability, leading to missed revenue and strained owner relationships. Using real-time data from trusted sources helps hosts personalize pricing, optimize marketing spend, and align with owners, driving revenue and efficiency. Hosts should focus on ensuring their data sources are reliable and up-to-date to maximize their financial performance.
Key Insights
- •Using spreadsheets and manual processes for pricing can lead to missed revenue and lost confidence in your strategy, while dynamic pricing tools powered by real-time data result in stronger performance and faster workflows.
- •With an integrated revenue management system, owners can see that pricing is based on actual traveler demand, not guesswork, resulting in up to +18% revenue uplift and alignment between managers and owners.
- •Relying on outdated or scraped data results in rates that don’t reflect reality, which negatively impacts occupancy and profit.
Action Items
- ✓Vet your vendors and ask where the data comes from, how often it’s updated, and whether you can access the raw data.Effort: lowImpact: high
Tools & Resources
- →dynamic pricing tools: The article mentions using dynamic pricing tools.
- →revenue management solutions: The article references revenue management solutions.
Common Mistakes
- ⚠Relying on manual rules like fixed minimum stays or blanket booking restrictions can lead to missed demand signals and reduce profits.
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Curated by Learn STR by GoStudioM