NEW Reputation Factor: Pricing That Responds to Guest Perception
Summary
Beyond Pricing has introduced a 'Reputation Factor' algorithm to dynamically adjust prices based on guest reviews. Listings with negative reviews will see price adjustments to reflect the impact on booking pace, potentially leading to faster recovery and improved placement in search rankings. This feature helps hosts stay competitive and adapt to changes in guest perception.
Key Insights
- •The maximum price adjustment is tied to the peak booking-pace impact for each review type: One-star reviews can trigger a discount of up to roughly 24 percent. Two-star reviews can trigger a discount of up to roughly 20 percent. Three-star reviews can trigger a discount of up to roughly 14 percent.
- •When a listing receives a low or below-average review, its booking pace declines shortly afterward for a period of time. One-star reviews show the strongest and longest impact, with booking pace declining immediately after the review is published and continuing to impact booking activity for more than a month until the effect declines further.
Action Items
- ✓If you use Beyond Pricing, familiarize yourself with the Reputation Factor and how it will automatically adjust your prices based on guest reviews.Effort: lowImpact: medium
Tools & Resources
- →Beyond Pricing: Beyond Pricing has introduced a new dynamic pricing algorithm component: Reputation Factor.(beyondpricing.com)
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