Today, we hear from Jules Renaud, one of the Co-Founders and CEO of Air Rental, a french property management company based in Montpellier. Air Rental uses PriceLabs with BookingSync to distribute dynamic prices and min-stay to all their channels for their 170+ listings.
Hi Jules, thank you for giving us some time to talk about the Air Rental experience with Pricelabs.
To begin, can you quickly introduce Air Rental, the history, the concept, your positioning, your differentiating aspect, the number of rentals managed?
Who at Air Rental was in charge of configuring Pricelabs?
It's me Jules Renaud, Manager of Air Rental, who did the primary setup of Pricelabs. Then it is Yuri Attali who took over the project to better set the conditions (customizations).
Can you describe how you managed your pricing before using Pricelabs?
Before using Pricelabs we had about 25 listings to manage, and we were only on Airbnb. Every day we took care to reduce or increase the prices of the listings one by one.
It was a job that took us a lot of time. And we missed great bookings because we did not know all the events of the city (we were only on Montpellier at the time so much to say that it would have been more complicated on the new cities that we did not know).
What were the reasons and goals you set for using a dynamic pricing tool?
Our goals were multiple:
Save time on time-consuming pricing work (more than 4 hours saved each week)
No longer miss events in the city, being at the right price
- Ability to decrease or increase our prices automatically in order to obtain more bookings.
We work with freelancers whom we call "Keeper". It is important for this community to have the most fully calendar possible. This allows them to have more work and to continue working with us.
How did you find the Pricelabs configuration?
Pricelabs automatically and easily connects to BookingSync (our PMS). It is very easy to use for someone who does not know about Yield Management. Pricelabs prices recommended are based directly on the base price of our accommodations and we can choose the minimum price. From there it calculates prices directly, for each day of the week, according to different factors.
It takes a little more time to master Pricelabs customizations, but once implemented, it significantly increases the profitability of the listings: the low-booked rentals pricing gradually decreases over time in order to be more booked.
Thanks to Pricelabs we have an occupancy rate of over 90% now.
What features of Pricelabs do you enjoy most?
The customization features as said before, it is important for us to be able to offer the 1 night min-stay at the last minute to have a high occupancy rate.
It is the same for bookings in the future, can increase the number of minimum nights of these stays and thus gradually increase the average length of our stays.
Finally it is appreciable to be able to gradually lower prices to be more attractive on rentals that have trouble to rent.
Comparing with your price management before Pricelabs, what benefits did you get? Do you have concrete results to share with us?
Yes we have seen our profitability increase by more than 15% thanks to Pricelabs.
A real use case was the rooms of our hostel in Montpellier. This hostel has 6 rooms, so it is affordable accommodation for smaller budgets (BackPacker).
The owner was very surprised to see very high prices in high season "This will never be rented at that price!" he had told us. After our feedback with Pricelabs, I reassured him to trust the tool.
He was super happy to see that Pricelabs was right, he would never have had such a large benefit without Pricelabs. And to tell the truth, we did not either if we had managed these prices by ourselves.