The goal is to create a process to calculate the base rate for Serviced Accommodation.
This can be a complex process as the base rate will vary depending on the month, amount of people staying in the property and depending on the website where you get the price from.
The best way to do this (from what I have worked out) would be to:
Find 5 comparable properties, on 4 of the most popular websites, for each month, for 1-8 people.
This will give us 1680 results:
5 properties x 4 websites x 12 months x 2 people plus;
5 properties x 4 websites x 12 months x 3 people plus;
5 properties x 4 websites x 12 months x 4 people
However, the goal is to create a fairly easy yet accurate way for my team to carry out this research on a regular basis. Physically pulling together 1680 results would be too time consuming.
The intention is to find how much I will earn from specific properties in London over the year. In order to work this out we need to work out the gross income, we can do this if we know the base rate.
Base rate = the general amount we will be charging per night for our Serviced Accommodation.
Serviced Accommodation = properties, like the entire properties you find on airbnb.
Comparable property = properties with characteristics that are similar to a subject property, such as location, number of bedrooms, number of people who can stay etc
2-8 people = The properties I am currently looking out will be able to sleep between 2 and 8 people
4 popular websites to get data from =
-When working out the results we would also need to minus the fee that the website will charge the host and add the cleaning fee if applicable.
-We only need to work out the base rate as we have dynamic pricing software (Kigo’s revenue management system) which will increase or decrease the price depending on the supply and demand at that particular time.
-The properties we will be looking at are in London, UK
-There are lots of articles out there on how to price your Serviced Accommodation property
-I have purchased data from https://www.airdna.co/ which cost a lot of money. Using this data you can analyse each month and see what the average occupancy rate & ADR is for each listing type, within each neighbourhood that you are operating in. You may find this helpful to use.